Bill 55, formally known as the Gaming (Amendment) Act and enacted in June 2023, is a controversial Maltese law that amends the country’s Gaming Act by introducing Article 56A. The core purpose of Bill 55 is to shield Malta-licensed gambling and casino operators from the enforcement of foreign court judgments related to their gaming activities, provided these activities are legal under Maltese law and regulated by the Malta Gaming Authority (MGA).
Malta is a major European hub for online gambling, with the sector accounting for roughly 10–12% of the country’s GDP. Many international casino and betting operators are based in Malta, using MGA licenses to offer services across the EU and beyond.
Key Provisions of Bill 55
- Maltese courts must refuse to recognize or enforce foreign judgments against MGA-licensed operators if the underlying activity is legal under Maltese law and the judgment would undermine the legality of Malta’s gaming framework.
- The law applies specifically to actions that:
- Conflict with or undermine the legality of the provision of gaming services licensed in Malta.
- Relate to activities deemed lawful under the Maltese Gaming Act.
- The stated aim is to enshrine Malta’s long-standing public policy of supporting its remote gaming sector and to provide legal certainty for operators based in Malta.
Points of Criticism Against Bill 55
Bill 55 has been met with significant criticism and legal challenges across the EU, particularly from Germany, Austria, and the Netherlands, as well as from EU institutions. The main points of criticism are:
1. Undermining EU Legal Principles
- Critics argue that Bill 55 circumvents the EU’s principle of mutual recognition and enforcement of judgments between member states, as established under EU law.
- The law is seen as conflicting with the Treaty on the Functioning of the European Union (TFEU), particularly the freedom to provide services across borders.
2. Protectionism
- Bill 55 is widely viewed as a protectionist measure, designed to shield Malta’s gaming industry from foreign regulatory actions and lawsuits, rather than promoting fair competition within the EU.
- By refusing to enforce foreign judgments, Malta gives its operators a unique advantage, which critics say distorts the internal market.
3. Blocking Player Claims and Consumer Protection
- Thousands of players across the EU have won court cases in their home countries (e.g., Germany, Austria) to reclaim gambling losses from Malta-licensed operators who offered unlicensed services locally.
- Bill 55 prevents these players from enforcing their claims in Malta, effectively leaving them without recourse to recover their losses.
- This has led to accusations that Malta is “letting global gambling giants off the hook” and undermining consumer protection across the EU.
4. Legal Uncertainty and EU Infringement Proceedings
- The European Commission has opened infringement proceedings against Malta, arguing that Bill 55 may violate EU law by systematically refusing to recognize foreign judgments.
- Legal experts warn that the law creates uncertainty for both operators and consumers, as it is unclear whether Malta’s position will ultimately stand in the face of EU legal actions.
5. International Reputational Damage
- The law has drawn sharp criticism from other EU member states, with calls for political and legal action to pressure Malta to reverse Bill 55.
- The controversy has also sparked debates about the integrity of Malta’s gaming regulatory regime and its commitment to upholding EU legal standards.
Malta’s Defense
The Malta Gaming Authority and Maltese government argue that:
- Bill 55 is a codification of Malta’s long-standing public policy rather than a new departure.
- The law only applies in narrowly defined circumstances and does not block all foreign claims—only those that undermine the legality of Malta’s regulated gaming sector.
- Malta maintains that its gaming framework is in full conformity with EU law, relying on the principle of free movement of services.
Summary Table: Bill 55 and Points of Controversy
| Aspect | Malta’s Position | Critics’ Position |
|---|---|---|
| Recognition of Judgments | Refusal if activity is legal under Maltese law | Undermines EU mutual recognition, blocks claims |
| Market Impact | Protects Malta’s gaming industry | Creates unfair advantage, distorts competition |
| Consumer Protection | Claims can be made if MGA standards are breached | Players left without recourse for losses |
| EU Law Compatibility | Claims conformity with free movement of services | Violates TFEU, subject to EU infringement action |
| International Reputation | Supports business and economic growth | Damages Malta’s standing, attracts EU scrutiny |
Conclusion
Bill 55 is a landmark and highly controversial law that protects Malta-licensed casinos and gambling operators from foreign court judgments related to their activities, provided those activities are legal under Maltese law. While Malta defends the law as necessary for its economic model and regulatory sovereignty, critics across the EU see it as protectionist, anti-consumer, and incompatible with the EU’s legal order. The ongoing legal and political disputes, including EU infringement proceedings, mean that the future of Bill 55—and Malta’s role as a European online gambling hub—remains uncertain.
