Stakeholders in Malta have taken a strong stand against the European Parliament’s proposals on iGaming, which include the possibility of each member state imposing its own licence on operators.

The topic was discussed at a public dialogue organised by the European Parliament Office in Malta with the Malta Business Bureau, with keynote speaker Ewout Keuleers of the European Gaming and Betting Association warning that dividing the EU into 28 different markets would render the industry unsustainable, raising costs considerably – and ultimately drive customers to illegal operators outside the EU.

“The need to get 28 separate licences would have a proportionately larger impact on Malta as the concentration of the cluster here is so strong.

“Other member states do not employ so many people – around 7,000 here. I do not know any other country in Europe which employs anything near this number...” he warned, saying that Malta needed to make a concerted and coordinated lobbying effort to ensure that the European Commission does not adopt the proposal.

“Malta needs a high level holistic strategic roadmap,” he said.

The EP report is the third attempt to bring some sort of order to the sector, which pits strong – and lucrative – state monopolies against the operators.

Malta’s rapid success as a leader in this field – it has 240 registered companies and more than 400 operating licences – means that it will be hit hard by the proposals.

MBB president George Vella was clearly incensed: “The EU should look at growth areas and see how to nurture them and not pander to those who want to defend their piece of pie,” he told the conference.

“There are clearly member states that are jealous of what Malta has achieved. The proposals go against the spirit of the EU.”

The proposals go squarely against the principles of a single market but have been justified on the grounds that gambling has a social impact and that the vulnerable – from addicted gamblers to minors – have to be protected from themselves.

However, the CEO of the Lotteries and Gaming Authority, Reuben Portanier, pointed out that no member state has ever produced evidence to local courts to justify why national authorisation should be imposed.

The battle for the iGaming market has been fought in international courts several times and there were several attempts to dismantle the monopolies through Competition Law. But the power of the member states is clear: The report author Ashley Fox, speaking in a videotaped interview, was clearly disappointed by the outcome, which was approved by 572 votes to 79, with 61 abstentions. There were a staggering 400 amendments made to the original text by the EPP and S&D groups.

“There are parts of the resolution which are simply not coherent,” he said, noting that the state monopolies would be the happiest should the resolution be adopted.

“My aim would be to have a single market with one licence valid for all the member states. But I realise that this could take a long time...” he said with a shrug.

There has been some progress, however, when it comes to enforcement.

There are infringement procedures in place against nine member states and dozens of complaints, all of which have been more or less on hold for the past five years, as well as 22 referrals to the EU Court of Justice. A spokesman for the European Commission acknowledged that dialogue has been underway with member states this year and that things would be moving “shortly”.

The war is not over. This was an “own initiative report” which will not lead to legislation. The next step will be to see how the European Commission reacts to the EP’s recommendations.

“We will also need to see what will happen with the new Commission and the EP elected next year, as this will lead to a review of the 2020 agenda,” Mr Keuleers said.

“So it is not a lost battle but the challenges are increasing and getting more complex, including issues such as taxation, double taxation, and regressive taxation which goes completely against bilateral agreements that Malta has made. And it goes against the fundamentals of the Maltese business model.”

vanessa.macdonald@timesofmalta.com