The European Commission has launched formal infringement proceedings against Malta over its controversial Bill 55, an amendment to the Maltese Gaming Act that protects online gaming operators from liability in foreign jurisdictions. The law, passed in 2023, effectively blocks the enforcement of foreign civil judgments or claims against Maltese-licensed gaming companies. Now, the EU is calling it into question.
The Commission's notice of infringement suggests that Malta’s legal shield may be in breach of Article 267 of the Treaty on the Functioning of the European Union, which enshrines mutual recognition of judgments among member states. Critics argue the law undermines judicial cooperation and sets a dangerous precedent by allowing Malta to operate as a safe haven for operators targeted by lawsuits in countries like Germany, Austria, and the Netherlands.
Malta’s controversial Bill 55 is to face scrutiny from the European Commission.
The EU has given Malta a two-month deadline to respond to its concerns. If no satisfactory explanation is provided, the case could escalate to the Court of Justice of the European Union (CJEU), potentially forcing Malta to repeal or amend the law. For the iGaming industry, the case could have sweeping implications, particularly for operators that have relied on Malta’s regulatory shield to fend off costly lawsuits abroad.
Malta shows why it was right to remove it from the grey list.
Legal experts suggest that a ruling against Malta would pressure other jurisdictions to reconsider similar protective mechanisms and could shake confidence in Malta’s longstanding reputation as a hub for online gaming. The Malta Gaming Authority (MGA) has yet to release a formal response, but industry insiders are watching closely, knowing that the case could redefine the limits of national sovereignty in the digital gaming era.
