First reaction to Malta

Malta has introduced a new law to protect its gambling companies from lawsuits relating to the recovery of losses from abroad. Initially, the German authorities accepted the development rather passively. Now, however, there is a certain amount of resentment. What are the first reactions?

A few weeks ago, the Maltese Parliament passed a law to exclude foreign claims against the local gambling industry. We recently reported on this Maltese gambling shield. The background: An increasing number of online casinos and sportsbooks have been hit by a wave of lawsuits over the past few months. Not infrequently, six-figure sums are at stake. The lawsuits come mainly from Germany and Austria.

At first, the German authorities and the federal government seemed largely unconcerned. The news programme "Tagesschau" reported that responsibility was being passed around. But now, slowly but surely, things are moving - the protective shield is having to withstand more and more fallout. Public criticism has been voiced above all by the federal government's drug czar, according to another report in the Tagesschau news programme. The authorities are now investigating whether EU law has been violated.

First reactions only with legal validity

The gambling protection shield has been legally binding since mid-June. After initially taking a wait-and-see approach, the German Gaming Control Authority (GGL) is now taking a closer look at the Maltese legislation. When contacted by the Tagesschau news programme, the GGL said that it wanted to take a closer look at the matter, particularly with regard to conformity with European law.

Things are also moving at the federal level: Burkard Blienert, the federal government's drug czar, who recently spoke out in favour of a ban on sports betting advertising at the forthcoming European Football Championship, has contacted the Ministry of Justice about the matter, according to the Tagesschau. Blienert pointed to the need for action to protect players.

EU Commission involved

A spokeswoman for the Ministry of Justice told the news programme "Tagesschau" that the responsibility for possible legal action lay not with the federal authority but with the EU Commission. Ultimately, the Commission would have to clarify whether the Gambling Protection Act is compatible with EU law. Any necessary action would then be taken.

In fact, the EU Commission has confirmed that a complaint has been lodged and will now be examined. However, this complaint did not come from an authority, but from two lawyers specialising in "gambling law". The complaint alleged a breach of European law which, according to the complainants, should lead to proceedings for breach of contract. The action of the Maltese State was unacceptable - if left unpunished, it would set a precedent for other countries, the complainants argued.

Conclusion

The German Gambling Authority has already announced that it will be keeping a close eye on developments: "Should the providers use the shield to the detriment of German players, it will have to be examined on a case-by-case basis whether this will have an effect on the reliability of the provider or whether it will be necessary and possible to tighten up the conditions of the licences," it said in a recent statement obtained by Tagesschau.

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