The European Commission has launched formal infringement proceedings against Malta, alleging the country is systematically blocking the enforcement of EU court judgments against its licensed gaming companies in violation of fundamental legal principles.
The Commission sent a letter of formal notice to Malta yesterday (17 June), accusing the Mediterranean nation of failing to comply with EU Regulation 1215/2012, which governs jurisdiction and the recognition of judgments across member states.
The dispute centres on Article 56A of Malta’s Gaming Act, popularly known as Bill 55, legislation that critics argue creates an impenetrable legal shield around the country’s online gambling sector.
According to the Commission, Malta’s courts are obligated under current law to systematically refuse recognition and enforcement of judgments issued by other EU member state courts against Maltese-licensed gaming companies, citing national public policy grounds.
The legislation also allegedly discourages foreign litigants from pursuing legal action in Maltese courts against these entities, despite EU rules that would normally designate Malta as the appropriate jurisdiction based on the defendants’ domicile.
The Commission said it “considers that the Maltese legislation, by effectively shielding the online gaming sector from cross-border litigation, undermines the principle of mutual trust in the administration of justice within the Union.”
It added this violates prohibitions on reviewing other member states’ judgments and exceeds the limits of public policy exceptions under EU law.
Malta given two months to respond
Malta now has two months to respond to the formal notice and address the Commission’s concerns.
Failure to provide a satisfactory response could result in the Commission issuing a reasoned opinion, potentially leading to proceedings before the European Court of Justice.
The Malta Gaming Authority strongly rejected the allegations in a detailed response, maintaining that Article 56A does not impose a blanket ban on enforcing European judgments or shield companies from legal action in other EU courts.
Instead, the MGA argues the provision merely codifies 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.
In a statement, the MGA said: “Malta has consistently maintained the position that its gaming regulatory framework is in line with the principles established by the Court of Justice of the European Union.
“In fact, Malta has consistently held that any unjustified restrictions — whether direct or indirect — on the freedom to provide services and the freedom of establishment within the EU internal market, run directly counter to the case law of the CJEU, and create a clear barrier to market access and trade within other Member States.
“Allowing such restrictions ultimately hinders the proper functioning of the internal market and limits the ability of companies established in Malta and other Member States to offer their services freely.
“For over 20 years, Malta has consistently challenged any unjustifiably restrictive approaches adopted, in line with Malta’s public policy in the online gaming sector.”
The supranational legal battles follows two Maltese court decisions in February, which saw courts rule Austrian player claims unenforceable on the island.
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