The polarising Bill 55, often cited in disputes around the Maltese gambling framework and licensing, could be set to slip the net of legal examination.

Advocate General Nicholas Emiliou concluded that a preliminary ruling on the legitimacy of Bill 55 was inadmissible and unnecessary to the conclusion of a case before the Austrian courts.

That being said, Emiliou accelerated a trend across Europe that will serve to intensify the pressure on Malta, as he remained unrelenting in his criticism of Bill 55, describing it as  ‘manifestly incompatible with the rules governing the recognition and enforcement of judgments’ by Brussels.

Further increasing the pressure on a region commonly regarded as Europe’s gambling hub, he emphasised that rulings on player restrictions against Maltese online gambling operators issued by EU member states must be recognised not only in Malta but also in other EU states. 

While the role of the Advocate General isn’t defined in this case, it puts pressure on Malta and increases momentum for the player-reclaim cases in the other direction, although it may also provide a net for Bill 55 scrutiny to slip through. 

Although not legally binding, the statement of the Advocate General serves as a thorough, independent recommendation for the judges to consider as they embark on their own deliberations. 

Just last week, trepidation within Malta’s gambling sector was heightened as the Court of Justice of the European Union (CJEU) backed the view that contracts between players residing in Germany and operators that aren’t licensed in the country are essentially void. 

This inflamed the legal conflicts that are currently in the midst of resolution between Maltese operators and a myriad of countries. 

In a preliminary ruling requested by the First Hall of the Civic Court in Malta, the EU court stated that players could be entitled to claim back losses from operators not licensed in the country. The European Court deemed that Article 56 TFEU – an EU law concerning restrictions on the provision of unrestricted services – does not supersede national laws related to online gambling disputes.

The cases threaten to usher in legal chaos across markets in global iGaming and to destabilise Malta’s status as the hub for iGaming in Europe, given its licence, which provides operators with a means to operate internationally, whether in the EU or elsewhere, as well as its favourable 5% tax rate.

 

 

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