Advocate General Ruling Mounts Pressure on Malta Amid Risk of Avoiding Bill 55 Scrutiny

(AsiaGameHub) –   The divisive Bill 55, frequently referenced in disputes surrounding Malta’s gambling framework and licensing, could avoid being subject to legal scrutiny.

Advocate General Nicholas Emiliou determined that a preliminary ruling on the legitimacy of Bill 55 was inadmissible and unnecessary for resolving the case before the Austrian courts.

That said, Emiliou advanced a growing trend across Europe that will amplify pressure on Malta, as he maintained unwavering criticism of Bill 55, describing it as “manifestly incompatible with the rules governing the recognition and enforcement of judgments” set forth by Brussels.

Further adding to the pressure on the region widely considered Europe’s gambling hub, he emphasized that rulings imposing player restrictions on Maltese online gambling operators issued by EU member states must be recognized not only in Malta and other EU countries.

While the Advocate General’s role is not dispositive in this case, it adds pressure on Malta and boosts the momentum of player refund claims in the opposite direction, while potentially allowing Bill 55 to escape legal scrutiny.

Though not legally binding, the Advocate General’s statement serves as a comprehensive, independent recommendation for judges to consider as they undertake their own deliberations.

Just last week, anxiety within Malta’s gambling sector heightened as the Court of Justice of the European Union (CJEU) upheld the view that contracts between players residing in Germany and operators unlicensed in the country are effectively void.

This escalated the legal conflicts currently in the process of being resolved between Maltese operators and a multitude of countries.

In a preliminary ruling requested by the First Hall of the Civic Court in Malta, the EU court ruled that players could be eligible to claim back losses from operators not licensed in their respective countries. The European Court determined that Article 56 TFEU – an EU law concerning restrictions on the provision of unrestricted services – does not take precedence over national laws related to online gambling disputes.

The cases threaten to usher in legal chaos across global iGaming markets, as well as destabilising Malta’s status as the hub for iGaming in Europe. Malta’s position as a hub stems from its licensing scheme, which allows operators to operate internationally whether within the EU or abroad, alongside its favourable 5% tax rate.