It was a real hammer blow when Malta announced in the summer of this year that it would legislate against foreign claims for losses against the domestic gambling industry. It took some time for the German authorities and politicians to react. Most recently, there have been indications of a complaint to the EU Commission. Recently, the Joint Gaming Authority of the German states issued a new statement. What does this mean for Maltese casinos or sports betting portals and players in Germany?

It has only been a few weeks since Malta officially passed the law known as Bill No. 55. With this legislation, only Maltese courts can enforce judgments against companies in the Maltese gambling industry. The legislation is apparently a response to the numerous claims for the repayment of gambling losses from abroad that many online casinos and digital sportsbook operators licensed in the island state have faced over the past few years and continue to do so. Such claims often originate from Germany or Austria. They have a high success rate, which means that local companies have to accept not inconsiderable losses.

  • We first reported on the plans for the so-called Maltese gaming protection umbrella in mid-June: at that time, the Maltese legislator's activities were still being taken in stride by German authorities and politicians.

Now, for the first time, the Joint Gaming Authority of the Federal States (GGL) has commented on the development in more detail. The main issue is responsibility. Whether the use of the law by companies that also hold a German licence could have a negative impact on this licence was only mentioned in passing.

Here's what GGL has to say about Malta's Bill No. 55

Apparently, the GGL has received many enquiries about Maltese Law 55: so many that it has decided to issue an official statement in the form of a press release.

What is the Authority going to do about the change in the law to protect gambling companies in Malta? In short, nothing for the time being.

  • The press release begins by saying that the company is "monitoring developments in relation to Malta's Bill No. 55". This has been mentioned before, but they are now more specific. They say: "We believe that this law is incompatible with European requirements for the recognition of judgments (Regulation (EU) 1215/2012).
  • However, the GGL also makes it clear that a final assessment and subsequent action against the legislation is not within its remit. The Authority's assessment has been brought to the attention of the Länder and an exchange of views has taken place.
  • It has also been made clear that the protective shield set up by Malta relates exclusively to the civil law claims of the players - and that the GGL is not responsible for these matters or the enforcement of related claims. The German Ministry of Justice has already contacted the European Commission regarding this matter. The GGL understands that proceedings will be initiated.

However, there is one area in which the GGL would be able to act: it is responsible for the licensing of gambling services in Germany. It has already been mentioned, and indirectly confirmed again in the current press release, that the invocation of Law No. 55 by a gaming operator may also affect its "reliability under gaming law". In other words, it remains to be seen whether such companies will no longer be entitled to a German licence.

Conclusion

Not too much can be deduced from the GGL's statement on Malta's gaming legislation in the long term. First and foremost, it outlines responsibilities, but also takes a position on the legality of the law. Reading between the lines, it seems that no action has been taken against Malta. For "the GGL expects that proceedings will be initiated", but nothing is certain yet.

Similarly, the authority is being very cautious about possible measures to decide on the eligibility of gambling companies operating under the umbrella. It is possible that they will wait until the EU has actually made a decision. Whether a possible revocation of the German licence due to the use of Law No. 55 would then be legal is another matter.

For now, there are no real consequences for Maltese online casinos or sports betting platforms and ultimately for players in Germany. But it remains exciting - a lot could happen here in the coming months.

 Image sources:https://pixabay.com/de/illustrations/mann-silhouette-aktentasche-96587/

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