Malta has long been Europe’s gaming powerhouse. But German MEP Daniel Freund recently brought the country’s iGaming industry before the European Commission to determine whether the country’s gaming laws were compatible with the European Union’s (EU) and discuss the high concentration of gaming companies within the country.

Malta’s iGaming Structure

Malta was one of the first countries in the EU to offer a clear, regulatory framework for their online gaming industry.  In 2018, the Malta Gaming Act (Chapter 583) was first passed, which consolidated and streamlined the country’s iGaming regulations.

In June 2023, Malta passed Bill 55, amending Chapter 583 to include Article 56A. It empowers Maltese courts to refuse enforcement of foreign judgments against licensed gaming operators if those judgments:

1. Contradict Malta’s Gaming Act or regulatory framework.
2. Concern an activity lawful under Maltese licensing rules. 

This effectively shields Malta-based operators from civil suits abroad.  This is particularly useful if a court in another EU country orders them to refund or compensate players. 

Why Malta Passed It

The law aims to codify Malta’s long-standing “point-of-supply” model: operators licensed in Malta can serve the entire EU so long as they follow Maltese law. The MGA and Maltese government argue Article 56A merely clarifies this and is consistent with EU law, especially the “ordre public” exception under the Brussels I Recast Regulation, allowing refusal to enforce foreign rulings that flagrantly violate public policy. 

MGA statements emphasize that only judgments conflicting with Maltese public policy are affected and only in narrow circumstances. 

Why the EU Objects

In June 2025, the European Commission launched infringement proceedings, citing concerns that Malta’s law:

• Undermines mutual trust among the EU judicial systems.
• Blocks enforcement of cross-border judgements in civil and commercial matters, violating Brussels I Recast.

MEPs including Daniel Freund and Peter Agius have formally questioned the Commission. They argue Malta is abusing the public policy clause to give its iGaming industry an unfair shield, risking fragmentation of EU internal market standards and consumers’ rights to seek compensation. 

A wave of cases in Germany and Austria, where courts have sided with players seeking refunds, has amplified the scrutiny. Malta’s law directly counters this trend by protecting operators from such foreign judgments.

Legal Nuances & Practical Impact

This isn’t a simple “legal insulation.” Malta argues:

• Article 56A doesn’t bar lawsuits.  Players can still sue licensed operators, including in Malta, and favourable foreign judgements can be enforced locally.
• The law applies only if the foreign judgment conflicts with Maltese public policy and licensing laws.

Still, critics worry these conditions are vague, giving Maltese courts too much discretion to block legitimate foreign rulings. Some are asking whether this constitutes de facto regulatory protectionism.

What Comes Next

• Malta has until mid‑August 2025 to respond to the Commission’s formal notice. 
• If unsatisfied, the EU may escalate: issuing a reasoned opinion, and potentially referring the case to the European Court of Justice (ECJ).
• The ECJ could weigh in as early as late 2025, and its verdict may reshape how EU member states balance national sovereignty and cross-border judicial cooperation in online gaming.

Why It Matters for iGaming Stakeholders

• Operators licensed in Malta should start assessing legal exposures in foreign jurisdictions and monitoring enforcement trends.
• Players could see their rights to pursue claims affected, especially in large refund cases from German or Austrian courts.
• Regulators across the EU watch closely. A ruling against Malta may tighten enforcement; a win could embolden national carveouts in other areas.

This is more than a legal debate: it’s about maintaining the integrity of the EU internal market and setting the tone for digital-era regulation. 

Conclusion

Malta’s Bill 55 and Article 56A offer a powerful national assertion in the face of growing EU litigation against iGaming operators. But at stake is more than market strategy; it’s a test of EU unity and legal coherence.

Whether Malta revises the law or the EU courts mandate changes, this dispute will clarify how cross-border justice navigates regulatory sovereignty. For operators, players, and policy-makers, watching the upcoming months is not optional, it’s essential.

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