Bill 55 and the EU: Peter Agius says Commission’s case against Malta is ‘morally weak’

It’s been over a year since the Gaming Act was amended to empower local courts to disregard any foreign judgment if it conflicts with or undermines the legality of the provision of lawful gaming services in/from Malta by virtue of an MGA licence. With Malta facing EU infringement proceedings, Ramona Depares reaches out to industry experts in an effort to unpack what could be next.

In June 2023, Maltese Parliament voted to amend the Gaming Act. In plain English, the new article protects the Maltese assets of locally licensed operators from being subject to compensation orders issued by foreign courts. This is the new Article 56A, better known across the EU as the infamous Bill 55 – and the controversies surrounding it remain unresolved to date.

Legal representatives from a number of countries – including Germany and Austria – have asked the European Commission to pronounce itself on whether the new legislation violates EU law. But the Maltese Government and the Malta Gaming Authority (MGA) have remained steadfast in their statements, insisting that “Article 56A confirms Malta’s long-standing public policy on online gaming and reflects existing rules under EU law”.

This impasse has led to infringement proceedings, and the road ahead appears murky. What’s next? I put the question to Maltese MEP Peter Agius, who has taken a keen interest in the matter.

“These proceedings are a preliminary step which may be followed by a reasoned opinion and, later, possibly by a formal decision to open a court case,” he starts off. So what are Malta’s chances if the matter actually makes it to the highest legal authority of the EU? Mr Agius is convinced that the Commission’s case remains “morally weak, given that the current conflict of laws arises from the Commission’s own inaction over the last years”.

Political pressure is mounting on the EU to take action against Malta, with leading voices like German MEP Sabine Verheyen criticising the Commission for failing to act decisively. What is the weight of such critics? Mr Agius points out that they must be evaluated within the wider context of the iGaming landscape.

“The impasse has only arisen due to the continuing fragmentation of the single market, which benefits illegal gaming activities outside the EU. In contrast, Malta’s regulated industry is led by a responsible regulatory authority that offers solid measures against addictive gambling and for the protection of minors and safeguards to prevent money laundering,” he says.

Some argue that the situation is indicative of a deeper tension between Malta’s reliance on iGaming revenues and the EU’s emphasis on consumer protection and judicial cooperation. Mr Agius disagrees, arguing that Malta’s regulations actually promote consumer protection.

“Malta carved its own place from nothing to become a European hub of online gaming, and it did this through smart regulation and the responsible administration of licences. The Maltese approach is very much complementary to EU objectives for consumer protection, free movement and the rule of law,” he states, adding that if action against Malta goes forward, it would definitely send a number of undesirable messages on the Commission’s abilities to handle the internal market.

Some of the larger, Malta-based operators are already seeing a potential fallout. Tipico CEO Axel Hefer, commenting on a pending dispute worth almost €4,000, stated: “The matter is now being examined by the ECJ. Depending on the ECJ’s decision, we will make repayments or not.” In April, the Rotterdam District Court ordered Betsson Group to pay just shy of €400,000 to a Dutch customer who gambled on sites that were unlicensed in the Netherlands. The company’s 2024 prospectus makes provision for this vulnerability to customer claims, noting that the risk of such claims being enforced is medium, while adding that if the risk were to occur, “the company considers the potential negative impact to be high”.

Meanwhile, operators with a Maltese licence eagerly await the decision that could turn out to be the biggest disruptor to the industry as we know it.

This interview first appeared in the iGaming Capital 2026 edition. For more information on the iGaming Capital 2026 edition or on www.iGamingCapital.mt, get in touch via email on info@contenthouse.mt or on +356 2132 0713. Additionally, readers can visit the iGaming Capital portal at www.iGamingCapital.mt to stay updated on the latest developments in Malta’s iGaming industry.