The Malta Gaming Authority (MGA) has issued a statement defending Bill 55, which protects gambling companies in the country, in response to a European Commission letter of formal notice.
In the letter sent on June 18, the European Commission accuses Malta of skirting EU laws around mutual recognition of court decisions. The letter comes after pressure in Austria, Germany, and the Netherlands over Malta’s refusal to recognize successful lawsuits against Malta-registered gambling companies.
The MGA posted a statement on its website claiming that Article 56a, formerly known as Bill 55, is in line with EU laws. It states,
“The MGA maintains that Article 56A does not impose a blanket ban on enforcing European judgments against Maltese-licensed gaming companies, nor does it shield them from legal action in other EU courts.
“Rather, Article 56A confirms Malta’s long-standing public policy on online gaming and reflects existing rules under EU law – specifically the ordre public exception in the Brussels I Recast Regulation. It does not introduce new or separate grounds to reject foreign judgments.”
Article 56a protecting gambling companies
Bill 55 was passed in Malta in 2023 and protects companies in the country from being held accountable to stricter laws in other nations.
Article 56a of the bill states, “No action shall lie against a licence holder and/or current or former officers and/or key persons of a licence holder for matters relating to the provision of a gaming service, or against a player for receipt of such gaming service, if such action:
(i) conflicts with or undermines the legality of providing gaming services in or from Malta”
It goes on to state, “The Court shall refuse recognition and/or enforcement in Malta of any foreign judgment and/or decision given upon an action of the type mentioned in sub‑article (a).”
In real terms, this means that offshore betting sites that are licensed in Malta are not forced to follow judgments in other countries if they are following the regulations set by the MGA and Maltese law.
Thousands of claims across Europe being blocked
Investigate Europe reports that thousands of successful claims from players in Germany, Austria, the Netherlands, and Sweden have been effectively stalled by Bill 55.
“The amount of gambling losses being reclaimed all over Europe probably will, sooner or later, total €1 billion,” said German lawyer Benedikt Quarch, whose firm is working on thousands of cases.
A Maltese court ruled in February against a decision in Austria to refund players’ losses at two MGA-licensed operators, TSG Interactive and European Lotto & Betting. The court invoked Article 56a, stating the foreign decisions conflicted with Malta’s public policy and the legality of MGA-authorized activities.
Austria takes case to European Court of Justice
In another case in Austria, a man, named as TE in court documents, sued the gambling company Titanium, which is licensed by the MGA and unlicensed in Austria. The man is seeking damages for losses of €18,500 on the platform. Austria only allows state-run gambling so the company operated outside Austrian law, but within Maltese gambling laws.
Given previous refusals to follow Austrian court decisions, Austria has taken this case to the European Court of Justice.
This month, the Adovocate General, a senior advisor to the European Court of Justice, stated that the damage occurred in Austria, since that is where the consumer placed the unauthorized bets. The relevant place of damage is where the bets were made, regardless of the location of the company’s registered office or server infrastructure.
The European Court of Justice is yet to make a ruling, but sides with the Advocate General’s opinion in 70-80% of cases,
Malta has not made any judgment on the case, but in theory Article 56a could protect Titanium from paying any damages, as the company are following Maltese law and the terms of the MGA-issued license.
Future actions by the European Commission and European Court of Justice could force Malta to alter its stance, which would have big consequences for gambling companies licensed in the country. Currently, 315 sports betting and online casinos hold licenses issued by the MGA.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
