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Malta, known as one of the biggest names in the global online gambling world, is now under pressure. The European Commission is challenging a law passed in Malta called Bill 55, which protects gambling companies from being sued by players in other countries. This legal fight could deeply affect Malta’s gaming industry, which makes up about 12% of the country’s total income.
Malta’s Rise as a Gaming Power
For the last 20 years, Malta has been a top destination for online gambling businesses. Big companies like Pokerstars, Kindred, and Betsson set up operations there thanks to low taxes, flexible rules, and a special license from the Malta Gaming Authority (MGA). With just one MGA license, companies could serve players across the European Union (EU).
This system, often called the “point-of-supply” model, helped Malta become a leader in the iGaming world. But that success may now be at risk.
What Is Bill 55 and Why It Was Made
Malta passed Bill 55 in June 2023 to protect its licensed gambling operators. The reason? Thousands of players from Germany and Austria started suing these companies for not having licenses in their countries. Courts in those nations ruled that players had the right to get their lost money back.
To stop this, Malta created Article 56A, a part of Bill 55. It gives Maltese courts the power to ignore foreign court decisions if they clash with Malta’s own gambling laws. The government says this move supports local business and follows EU laws under a rule called “ordre public”, which allows exceptions in rare cases.
After the law came into force, it had a big impact. Malta’s courts started rejecting many claims from other countries. In fact, in 81 lower court cases, gambling operators won 62, and in 32 appeal cases, they won 27. This shows how strong the law has been in defending Malta’s industry.
Critics Say Malta Is Breaking EU Rules
While Malta claims the law is legal, many experts and EU officials disagree. They believe Bill 55 breaks EU regulations, especially Regulation 1215/2012 (also known as Brussels I Recast). This rule says all EU countries must respect each other’s court decisions.
Critics say Malta is using the public order exception too freely. It is meant to be used in rare and serious cases, not to protect local businesses all the time. One German lawyer even said that players don’t expect to win cases in Malta anymore, which makes the law unfair.
The EU Takes Action
On June 17, 2025, the European Commission officially started legal steps against Malta. If Malta doesn’t respond properly by mid-August 2025, the case could go to the European Court of Justice (CJEU).
Experts think the court will likely rule against Malta. If that happens, Bill 55 could be cancelled, and operators might have to pay back players possibly hundreds of millions of euros. One ongoing case involving Lottoland (C-440/23) could even decide how far Malta can go in blocking foreign rulings.
What Happens If Malta Loses?
If the EU court rules against Malta and the country doesn’t change the law, there could be huge penalties. Malta might face daily fines, and gambling companies could be flooded with 50,000+ lawsuits, especially from Austria and Germany.
Big companies like Flutter, which owns Pokerstars, are already warning their investors about the financial risk. They said in their 2025 report that losing these legal battles could seriously harm their business.
There’s also a risk that gambling companies might leave Malta and move to other places with less legal trouble. This could hurt Malta’s economy and its reputation as a safe place to run an online casino.
Malta Stands Firm
Despite all the criticism, Malta is standing strong. Economy Minister Silvio Schembri said that the country has the right to make its own rules. The MGA also says that it supports responsible gaming and follows all EU rules.
But the situation is getting harder. The CJEU is expected to give its first opinion on this topic in July 2025, which could shape the future of Malta’s iGaming industry.
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