Malta and the EU are at loggerheads over a new Council of Europe treaty on match-fixing, which could have a negative impact on the future of Malta’s thriving gaming industry.
During a meeting in Oslo last week, a top official from the European Commission urged EU member states to prepare the necessary groundwork for the treaty’s ratification and implementation.
He said the Commission “is very confident of the conclusions” of a legal challenge presented by Malta last July.
Yves Le Lostecque – the EU’s director general for education and culture – said the Commission agreed with the convention and wants to sign it.
The ratification and implementation of the Council of Europe’s Convention on the Manipulation of Sports Competition by the EU member states is currently on hold, since Malta filed its case with the European Court of Justice.
Malta claims the convention seeks to regulate the betting industry, ‘which is not a settled EU matter’ and is being used to ‘bypass’ the correct procedures
The member states are waiting for the EU court’s opinion before proceeding. The Maltese challenge disputes the definition of the convention on what constitutes illegal betting. Malta – which has attracted hundreds of betting companies due to its attractive legal and taxation regime – has formally asked the EU court to clarify whether the illegal sports betting sections of the convention are compatible with the EU treaty, particularly where it comes to freedom of movement.
Although the Council of Europe is a different organisation from the EU, all member states are also members of the council and are bound to sign and implement the convention if it is in line with the EU treaty. Malta fears if more restrictions are introduced on illegal sports betting, they could be used against bona fide licensed bookmakers to restrict the legal online betting market in the EU.
Malta is claiming that the convention seeks to regulate the betting industry, “which is not a settled EU matter” and is being used to “bypass” the correct procedures. Malta has been fighting EU regulation on the gaming industry since it joined the bloc, arguing it is a service like any other and should be regulated under the EU’s freedom of movement rules.
However, also due to Malta’s success in the industry, many member states have been trying to influence new laws to restrict the market as much as possible and attract the return of companies which have relocated to Malta.
Despite the legal challenge, the European Commission is still urging member states to go ahead and sign the convention.
Mr Lostecque said that member states do not have to wait for a decision on the Maltese challenge before signing.
However, he clarified that when it comes to ratification – the final procedure before a convention enters into force – the Commission will not conclude before the decision of the Court of Justice.
“It is difficult to predict time but I think we should have a decision from the court this year and then we will go ahead,” he added.
“We are very positive about the conclusion.”
The convention defines illegal sports betting as “any sports betting activity whose type or operator is not allowed under the applicable law of the jurisdiction where the consumer is located.”
According to Malta, this suggests that operators which are licenced in one country and following rules on monitoring to control match-fixing could be declared illegal in another country and have their websites blocked.
This would have very negative consequences for the companies located in Malta.