Malta is rethinking laws on illegal sports betting
The Malta Gaming Authority (MGA) is considering joining the Council of Europe’s Macolin Convention. This move is completely different from the previous position.
Since 2014, the Malta Gambling Authority (MGA) has deliberately bypassed the Maclin Convention, which has become a source of controversy following its ratification by the gaming regulator. If the MGA decides to join, it will fundamentally change the way Malta defines legal or illegal sports betting operators.
There has been no firm announcement yet regarding the upcoming changes or how it may affect the recently approved Bill 55. The legislation gives gambling operators with a Maltese license a virtual free pass to avoid prosecution from foreign lawsuits.
Current law allows players in jurisdictions where gambling is illegal to access MGA-licensed sports betting sites. Players do not need to impose legal bans, but instead rely on the laws of their country to determine whether they are accessing an illegal platform.
According to the provisions of the new Macrin Convention, these platforms will be classified as illegal platforms. If the MGA joins, the operator will be liable for any lawsuits filed in the countries where these users are located.
Although gambling advisers are firmly opposed to joining the Macrin Convention, they continue to pressure the Maltese government to change its mind. This becomes even more important in 2021, when joining is seen as a way to appease the Financial Action Task Force (FATF). The aim at the time was to ensure that Malta would avoid the FATF gray list. Even though the country only stayed "on the list" for a year, it didn't work.
The MGA appears to be seriously considering the possibility of adopting the Macrin Convention. The company reportedly hired law firm Van Bael & Bellis to review the pros and cons of joining.
Bill 55 Controversy
But Bill 55 has stoked tensions since its introduction. The European Council has spoken out against it and the European Commission will review whether it complies with European Union (EU) law.
Germany’s Joint Gambling Authority (GGL) has also raised concerns, saying the new law breaches EU regulations.
Germany and Austria are at the center of various lawsuits, pitting users or countries against each other and operators. They have recently attempted to take the dispute directly to Malta to seek a solution. Bill 55 would prevent that from happening.
European countries want to clean up the sport
The Makrin Convention first appeared in September 2014. Its main goal is to prevent match-fixing.
The Council of Europe describes it as "the only rule of international law concerning the manipulation of sporting competitions". After years of drafting work, the agreement was finally approved in 2019.
France, Greece, Italy, Portugal and several other countries are in the lead. Since then, 32 European countries have joined.
While the contract was originally intended to deal with fraudsters manipulating sports games, it eventually went much further. It finally included a definition of illegal sports betting. It states: “‘Unlawful sports betting’ means any sports betting activity whose nature or operator is not permitted under applicable law in the consumer’s jurisdiction.”
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Source: www.casino.org
