Many international gambling operators are utilizing a relatively unknown Malta law that does not recognize court decisions made elsewhere in the European Union.
The small Mediterranean island’s Bill 55 means courts in the country can “refuse recognition and, or enforcement” of any foreign judgment involving companies registered in Malta, with numerous gambling entities having set up a local base to benefit from the favorable business terms on offer.
Bill 55 has been described by a lawyer as a “sledgehammer” due to its ability to negate wider European Union laws, with the situation set to escalate.
The current situation effectively shields major companies such as Betsson and Unibet from overseas rulings.
Pressure is growing on the European Commission to face down the Maltese law, with Austria’s highest court challenging the European Court of Justice (ECJ) to determine if Malta is breaching EU law.
Similar cases have been brought in Germany, Sweden, and the Netherlands, amid a swathe of customer complaints about illicit gambling and sites run by Malta-based companies that are not registered (and operating on an unapproved basis) in those other countries.
Austrian court decision overruled
The crux of the ongoing debate is a Maltese Civil Court ruling, delivered on February 27, which declared it would not enforce Austrian court judgments in favor of gamblers being awarded refunds on sites that were not licensed in Austria.
The takeaway is that previous Austrian rulings have been declared as contrary to Maltese policy.
All of this centers around a gambling player who lost $39,845 in 2020 on Lottoland, operated by Malta-licensed European Lotto and Betting Limited.
An Austrian court previously intimated the claimant could recover their losses due to the illegal status of the operator in the (Austrian) market, but the case was contested in a local court by the Malta Gambling Authority (MGA).
It appears that Malta’s unique setup and local jurisdiction are about to be tested by overall EU law. Something has to give, soon.
Image credit: Via Midjourney
