Malta Defends Foreign Judgment Bill

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Malta’s government ministry responsible for a bill that aims to prohibit foreign judgments from being enforced against gambling providers licensed in the country has defended its plans.

The Ministry for the Economy, European Funds and Lands said: “Malta has long been committed to protecting the status of the Malta gambling sector and the Maltese licence.

“The regulatory standards in Malta in this regard are second to none and respect the fundamental freedoms afforded to every individual and establishments in the European Union (EU); including the freedom of establishment and the freedom to provide services,” the ministry told VIXIO GamblingCompliance.

The ministry was responding to questions raised about whether or not it had legal concerns that the proposal could be in conflict with European Union laws.

“In the absence of harmonisation of regulation of this service, the government has given regulated operators the necessary assurance against unfounded challenges, as a matter of public order for the country. The bill is solely intended to enshrine this approach in law,” the ministry said.

The proposed amendment was published on May 2, 2023 by Silvio Schembri, minister for the economy, European funds and lands.

The bill states that no action can be taken against a licence holder if its deemed to conflict with or undermine gambling services in or from Malta or the legality of any legal or natural obligation resulting from the provision of gambling services.

However, Stefan Bohar, a member of the AdvoFin Litigation Financing Board, who is currently financing thousands of reimbursement cases in Austria against online casino operators, told VIXIO earlier this week that if the law is approved it will likely lead to the European Commission launching infringement proceedings against Malta.

The European Commission has been notified of the proposed law by AdvoFin, as have Austrian members of the European Parliament (MEPs) and German legislators.

The bill is currently awaiting its second reading in Malta's parliament, which should be soon.