European Commission launches infringement proceedings against Malta over controversial gaming law

The European Commission has launched infringement proceedings against Malta over Article 56A of the Gaming Act – formerly known as Bill 55 – which prevents the enforcement of certain foreign court judgements against Malta-licensed gaming companies when such judgements undermine the local gaming regulatory framework.

The legal action follows concerns raised by Austrian and German legal firms who have been grouping gambling loss claims into lawsuits against Maltese operators. These operators, licensed by the Malta Gaming Authority (MGA), are accused of offering services illegally in their countries. Malta, however, has stood firm, arguing that its point-of-supply licensing model is in line with EU law.

In response to the Commission’s Letter of Formal Notice, both the MGA and the Government of Malta issued statements defending Article 56A and reaffirming the country’s position within the EU framework.

The MGA clarified that “Article 56A does not impose a blanket ban on enforcing European judgments against Maltese-licensed gaming companies, nor does it shield them from legal action in other EU courts.” It stressed that the provision reflects Malta’s existing public policy under EU law, particularly the ordre public exception contained in the Brussels I Recast Regulation.

It added that Malta’s licence model allows companies to offer services across borders “provided they have a justifiable legal basis for doing so and that they continue to comply with the Maltese regulatory framework.”

The Maltese Government echoed this view, stating: “The Government reiterates that Article 56A of the Gaming Act does not establish new or separate grounds for refusing recognition or enforcement of judgments beyond those set out in Regulation (EU) 1215/2012 (Brussels I Recast). Rather, it codifies into law Malta’s long-standing public policy on online gaming matters.”

The Government confirmed it will formally respond to the Commission’s letter within the stipulated two-month timeframe and reaffirmed its commitment to open dialogue, noting: “Malta remains fully committed to maintaining a constructive dialogue with the European Commission.”

Meanwhile, MEP Peter Agius welcomed the Commission’s move but called for a more holistic response to the cross-border gaming dispute. He urged the Commission to also address third-party litigation funding groups that are driving collective legal actions against Malta-based operators.

Concerned with @EU_Commission infringement action on bill55.

Calling on @MaltaGov to align with #EULaw asap and on the EC to act upon the other side of the coin – the TPLF jungle spurring doubtful court actions on gambling losses. @EUCssrMcGrath @steph_sejourne

— Peter Agius (@peteragius_eu) June 18, 2025

“The Commission should not address the issues in the online gambling sector piecemeal. Freedom of movement needs to prevail,” he said.