Malta faces its most significant regulatory clash with the European Union following the opinion issued on April 23, 2026, by the Advocate General of the CJEU, Nicholas Emiliou, in Case C-683/24, Spielerschutz Sigma, which questions the legality of Article 56A of the Gaming Act, Chapter 583, introduced through the Gaming (Amendment) Act 2023 (Act XXI of 2023), known as Bill 55. The provision, in force since 2023, requires Maltese courts to refuse recognition and enforcement of foreign judgments against operators licensed by the Malta Gaming Authority (MGA) when those rulings affect services considered legal under Maltese law.
The conflict intensified after the April 16, 2026 ruling in Case C-440/23, European Lotto and Betting / Deutsche Lotto- und Sportwetten, where the CJEU confirmed that Member States may restrict online gambling even if it is authorized in another EU country, allowing contract nullification and player loss recovery. This precedent weakens the implicit assumption of automatic recognition that Malta has relied on for its gaming industry.
The European Commission had already launched an infringement procedure on June 18, 2025, under Article 258 TFEU, arguing that Malta applies the public policy exception of the Regulation (EU) 1215/2012 (Brussels I Recast) too broadly, undermining judicial cooperation across the bloc. Emiliou reinforced this position by stating that an MGA license does not grant automatic cross-border operating rights and is only valid where other Member States choose to recognize it.
CEO Charles Mizzi
In 2024 it generated €1.386 billion in gross value added, representing 6.7% of GDP, rising to 10.1% including indirect effects, with 315 companies, 323 licenses, and 14,357 jobs, and contributed 82.4 million in taxes and regulatory fees. The regulator, the Malta Gaming Authority, is led by CEO Charles Mizzi and chaired by Ryan Pace, under the Ministry for the Economy, European Funds and Lands, which promoted Bill 55 as a defensive measure against international litigation.
Risks are concentrated in markets such as Germany, Austria, the Netherlands, and Sweden, where authorities like the Gemeinsame Glücksspielbehörde der Länder (GGL) have challenged the compatibility of Malta’s model. If the CJEU follows the Advocate General’s opinion, players will be able to enforce judgments in their jurisdictions against MGA-licensed operators, exposing the industry to large-scale repayment claims, margin pressure, and a strategic overhaul of access to the European market.
