The Maltese Bill No. 55 has been making waves in the iGaming community for a while now. Lawmakers have approved the law in June 2024 after Malta’s President signed it earlier. It has sparked a lot of controversies as it allows Maltese courts to refuse to recognize any foreign judgments related to MGA-licensed operators in the European Union.
Many of Malta’s largest online gambling operators offer online gambling on the European market. Thanks to the MGA licence, they can offer their services throughout Europe. With the new law, Malta is looking to protect its businesses.
What is Bill No. 55?
In June this year, Malta amended a law that allows gambling companies to disregard foreign court rulings. The bill 55 was tabled on April 24 and signed into law by president George Vella in early June. It comes at a fragile time in the European online gambling market, after some businesses are facing scrutiny over their Austrian operations.
The new law was met with contempt across Europe. Many experts and iGaming business CEOs think that it goes against European online gambling laws. The European Union is pushing for safe and fair regulations when it comes to iGaming, and the Bill No. 55 is widely seen as going against it. With the new law, online gambling businesses licensed by the Malta Gaming Authority can simply disregard foreign court rulings, in that way not being obligated to cover losses to customers.
Per the Bill, courts can now ‘refuse recognition or enforcement’ of any foreign judgment in relation to MGA-licensed casino sites. The legislation states that its objective is to support Malta’s long-standing policy to encourage establishment of gaming operators in the country. Malta’s lawmakers have defended the new law, stating that it supports private enterprises in line with the country’s Constitution.
Bill 55’s iGaming Objectives
Online gaming is one of the premier entertainment industries in Malta. The country’s governing body - the MGA - oversees all gaming activity and issues licences. While some may see the new law in a negative light, it definitely supports the growing casino industry in the country. Here’s what the new amendment promotes:
New business ventures
Bill No. 55’s influence goes beyond the gaming sector. In fact, thanks to its introduction, many new businesses could be attracted to Malta. This will be a big boost to the country’s economy. For instance, the competition and innovation new businesses bring will result in more new job positions..
If new businesses ventures operate within Malta’s law, they can operate without any worries. Malta has long been a staple of European casino gaming, and thanks to Bill 55, it will continue to improve.
Private gaming services
The legal framework in Bill No. 55 protects operators from foreign liabilities. It’s completely in line with Malta’s Constitution. It promotes the resilience of private businesses, in that way promoting private gaming services. With the new amendment, MGA-licensed operators can operate worldwide without the fear of their reputation taking a hit. If any legal questions are raised, they will be protected under the new bill.
Promoting the growth of already established businesses
The new bill will also promote further growth of Malta’s already established businesses. If their actions are legal, they have nothing to worry about. Of course, foreign courts can still take legal actions against any operator in their own jurisdictions.
Is Bill No. 55 right or wrong?
The core objective of Bill No. 55 is not to go against EU’s online gambling laws. It’s to find a balance between protecting operators and upholding justice. Malta’s goal is to promote further growth of the iGaming industry. Critics will speak loud, but it’s every country’s responsibility to protect its business ventures.
From Malta’s perspective, Bill 55 doesn’t alter the Gaming Act or public policies to a major extent. Rulings against operators will be enforced if any casino’s action violate MGA’s standards. The online casino market in Malta is always growing, and the country is looking to ensure it stays that way.
It reinforces Malta’s commitment to protecting operators that hold the prestigious licence. While Malta sees some actions as legal, other regulators might deem them legal. In short, it’s very easy to sue MGA operators outside of Malta. Such violations could challenge MGA’s authority, and the new bill effectively eliminates that.
How big is the online gambling market in Malta?
Malta is a small island country and consequently, the market is small in size too. However, it’s been a hub for iGaming for decades, and the new law ensures it will stay that way for decades to come.
Despite a population of just over half a million, Malta’s economy is strong. It has a GDP per capita of €39,000. Most essential goods are imported from foreign trading partners. The local economy is boosted by the presence of many big iGaming names. This industry has become a pillar of Malta’s economy, with revenue passing new hallmarks every year.
The revenue online gaming businesses bring in was at $1.5 billion in 2019. Besides the eye-watering revenue figures, the more important part is that the iGaming industry opens thousands of new jobs per year. Between casinos, developers, and software providers located on the island, it’s easy to see how iGaming is driving the economy forward.
The Maltese economy is one of the fastest-expanding in Europe. As the European hub for online gaming, Malta hosts some of the biggest events in the industry, including the SiGMA awards. The EGR awards are often held in Malta too, so it’s clear that the country has set its sights on iGaming as the main driver in its expanding economy.
Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.rgf.org.mt/