Malta's new gambling law scorned by Netherlands
Malta's attempts to protect its gambling operators from lawsuits from other European countries have already drawn negative reactions from Germany and Austria. This led the European Union (EU) to question its legality. Now that the Dutch government has joined the opposition, pressure is growing on Malta to overturn Law 55.
After several lawsuits were filed against operators licensed in Malta, the country decided to try to create a legal free pass. If a foreign government attempts to prosecute someone in a Maltese court, a judge can dismiss the case before it begins.
Malta's parliament approved the bill in June, but had to mobilize its reputation management team to save its image. Lawyers from several countries claim Bill 55 violates EU law, and a group of lawyers in the Netherlands are now trying to get the country to take a stand.
Cannot drive 55
Lawyers say there is no legal reason for Malta to move forward with Bill 55. They want the Dutch government to formally oppose the bill and try to force Malta into submission.
Two local law firms, Loonstein Lawyers and Van Diepen Van der Kroef Lawyers, are leading the charge. They wrote a letter to Dutch Legal Protection Minister Franc Weerwind last week in an attempt to gain political support.
We call on the Dutch government to safeguard the interests of this group of Dutch people and ensure, through the European Commission, that Malta does not continue to flout the rule of law as set out in the EU treaties. ” the lawyers said in a statement letter to Legal Protection Minister Franck Welwind.
Law firms have not only voiced their opposition to the bill. They are involved in a legal dispute against operators licensed in Malta. They argue that Bill 55 violates not only EU law but also Dutch law.
As there is still no uniform gambling regulations across Europe, there is a lack of clear guidelines on what government operators must offer their services in different countries. Several lawsuits in Germany and Austria have resulted in operators having to compensate customers for losses because they did not have operating licenses in those countries.
However, the operators argued that they did not need a country-specific license - their Maltese license allowed them to enter legally. Kindred has tried to play this card in Norway, but failed miserably.
Legal ambiguity
At the heart of the disagreement over the enforceability of Act 55 is a series of laws that first came into effect in 2009. This culminated in the development and signing of new regulations, Regulation (EU) No. 1215/2012 and the updated Recast Brussels Regulation (RBR).
The purpose of this Regulation is to provide guidance on the management and enforcement of civil and commercial proceedings in the EU. Several articles in RBR discuss how to deal with legal issues and disagreements between EU member states.
Malta believes the provisions will allow it to circumvent the rules in certain circumstances. The wording repeatedly states that a member state has the final say if a dispute does not comply with that member state's legal principles. As far as Malta is concerned, Bill 55 was enacted to ensure there was a way out.
Malta may be feeling some pressure from the EU and the controversy surrounding the bill. The Malta Gaming Authority recently announced that it is considering an objection to the Maclin Convention.
The organization is an EU initiative dedicated to issues of integrity in sport. It also defines the legality or illegality of sports betting platforms. If an online sports betting operator does not have a country-specific license and provides services in that country, it is essentially operating illegally.
This appears to contradict Law 55, which protects gambling operators in Malta and attempts to claim that they can operate in EU countries even if they are not licensed there. The lack of clarity will create more confusion and the European Council will have to decide whether Malta cooperates with the rest of Europe.
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Source: www.casino.org