New Maltese bill tabled to defend operators from overseas liability
Bill 55 aims to protect the country’s licensed operators from foreign activity but has already faced stern opposition in Europe
The Government of Malta has tabled a bill to amend the country’s gambling regulations, preventing Maltese courts from awarding damages to those players who have sued firms that offer gaming services abroad.
This change will cover gambling firms active in European grey markets, which have seen businesses facing legal battles.
In some instances, operators have been ordered by local courts to pay back consumer losses in full.
In September 2021, the Austrian Supreme Court of Justice ruled that PokerStars was not licensed to operate in the country’s market and therefore all the contracts established between the operator and its players were void.
The case was raised by an individual represented by legal firm Gottgeisl Leinsmer Weber, which sued the poker site for the player’s losses.
The court ordered PokerStars to reimburse of all the plaintiff’s losses, which amounted to €28,000 (£24,351.32).
Malta’s courts are instructed under this new legislation to “refuse recognition and/or enforcement” of any foreign judgment if it compromises the legitimacy of the delivery of gaming services in Malta by licensed firms.
The main aim of the measure is to formalise into law Malta’s long-standing official policy of supporting the development of casino businesses in the country. It goes on to say that it is an endeavour to assist private enterprises in line with the Constitution of Malta.
There has already been opposition to this new bill, in one instance an Austrian law firm and separate German lawyer writing to the European Commission to accuse the Maltese government of undermining the European rule of law.
In the letter the two legal practitioners, Karim Weber and Benedikt Quarch, allege, the Maltese government is attempting to expedite legislation amendments that would preclude Maltese courts from implementing convictions handed down against Maltese gambling enterprises in foreign countries.
The letter, issued to the European Commissioner for Justice, Didier Reynders, and the European Commissioner for Economy, Paolo Gentiloni, singles out the Maltese Minister for the Economy Silvio Schembri, who is responsible for Malta’s casino industry.
The lawyers wanted to bring to the attention of the Commissioners that the Maltese government is attempting to “blatantly undermine European Rule of Law by blocking the fundamental rights of EU Citizens and Residents”.
It is also alleged that that Schembri is tabling this bill to amend the Maltese Gaming Act to “accommodate the gaming companies registered in Malta”.
The bill is currently at the second reading stage. It will then be moved onto the Committee Stage, which will see each clause of the bill examined and any amendments are made at this point. It is then put before a third reading before being presented to the President of Malta for final approval.