MGA Statement following Letter of Formal Notice on Article 56A
The Malta Gaming Authority refers to the Letter of Formal Notice issued by the European Commission in relation to Article 56A of the Gaming Act (Chapter 583 of the Laws of Malta), formerly known as ‘Bill 55’.
The MGA maintains that Article 56A does not impose a blanket ban on enforcing European judgments against Maltese-licensed gaming companies, nor does it shield them from legal action in other EU courts.
Rather, Article 56A confirms Malta’s long-standing public policy on online gaming and reflects existing rules under EU law – specifically the ordre public exception in the Brussels I Recast Regulation. It does not introduce new or separate grounds to reject foreign judgments.
Since Malta’s accession to the European Union, its online gaming licence was devised as a point-of-supply licence. This means that operators licensed in Malta can offer their services on a cross-border basis, provided they have a justifiable legal basis for doing so and that they continue to comply with the Maltese regulatory framework. The Maltese gaming framework is committed to promoting responsible gambling and safeguarding all players, regardless of their country of residence. In fact, the MGA’s regulatory framework establishes various requirements, such as protecting player funds, safeguarding minors and vulnerable persons, providing responsible gambling tools to prevent gambling related-harm and ensuring that gaming services are advertised fairly.
As a Member State operating within the framework of EU law, Malta has consistently maintained the position that its gaming regulatory framework is in line with the principles established by the Court of Justice of the European Union (CJEU) and the fundamental freedoms enshrined in the Treaty on the Functioning of the European Union (TFEU), specifically the freedom to provide services and the freedom of establishment. Malta’s public policy in the gaming sector is shaped by, and grounded in, these same principles.
In fact, Malta has consistently held that any unjustified restrictions – whether direct or indirect – on the freedom to provide services and the freedom of establishment within the EU internal market, run directly counter to the case law of the CJEU, and create a clear barrier to market access and trade within other Member States. Allowing such restrictions ultimately hinders the proper functioning of the internal market and limits the ability of companies established in Malta and other Member States to offer their services freely. For over 20 years, Malta has consistently challenged any unjustifiably restrictive approaches adopted, in line with Malta’s public policy in the online gaming sector.
Consequently, the MGA reiterates that Article 56A of the Gaming Act does not introduce new or separate grounds for refusing the recognition or enforcement of judgments beyond those already set out in Regulation (EU) 1215/2012. Rather, it codifies into law Malta’s long-standing public policy on gaming matters. The MGA will continue to support the Maltese Government in engaging in open and constructive dialogue with the European Commission.
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