Malta’s gaming regulator has not been fazed by the European Court of Justice’s recent ruling that Austria was not obliged to recognise a Maltese gaming licence, and is focused on the courts’ call for the EU to act to create uniform legislation.
European Lotteries Association president Friedrich Stickler had reacted pessimistically by saying the ruling two weeks ago “heralded the end for those who want uniform online gambling laws with mutual recognition of gambling licences”.
But the Lotteries and Gaming Authority took a different perspective.
“The preliminary ruling is calling on the EU institutions to act with respect to creating EU uniform gambling laws,” the LGA told The Times Business. “The court is clearly saying that it cannot create law and, indeed, on several occasions called on the relevant EU institutions to act in this field, stating that it is giving the ruling and coming to these conclusions due to ‘the current state of EU law’ and ‘in the absence of harmonisation at EU level of legislation in the sector of games of chance’.”
The ECJ’s opinion on September 15 followed criminal proceedings brought against the two Austrian founders of bet-at-home.com, a group which incorporates several Maltese subsidiaries that offer online games of chance and sporting bets. The subsidiaries hold Maltese licences. The Austrian authorities alleged the subsidiaries were breaking the law on games of chance as only a monopoly was permitted in the country.
The Austrian court was however unsure on whether the law was compatible with EU legislation and several questions were referred to the ECJ for a preliminary ruling. Malta backed the Austrian company founders’ arguments.
Unlike legislation for most other activity across the EU, there is no harmonisation of gaming laws for the bloc.
The ECJ said Austria was justified in opting for a monopoly in the sector if it fulfilled criteria such as consumer protection. It added that with the EU’s fragmented system, member states were entitled to do what they considered necessary to protect their citizens.
But the European Gaming and Betting Authority said the EU’s current legislative situation was unsustainable.
The LGA, through the government, has, in the meantime, submitted its feedback to the Green Paper launched by European Commission in March. Many Maltese licencees and service providers have also voiced their opinions, according to the Commission. The consultative process focuses on the future of online gaming regulation across the EU.
The LGA believes this consultation and any follow-up action will help all stakeholders to understand the sector and its recent development, an “imperative” step from both regulation and consumer protection aspects.
“The LGA looks forward to follow-up action from the Commission that will strengthen the functioning of the internal market in the area of on-line gaming while ensuring a high level of consumer protection and the preservation of public order objectives shared by all EU member states,” the regulator said.
The Commission closed the submission process on July 31 and the European Parliament is expected to finalise its position in November.
The Lotteries and Gaming Authority has received nearly 700 applications since 2004 and there are 405 active licences, the annual Malta iGaming Seminar heard last June.
The jurisdiction, Europe’s first to create a fully fledged regulatory framework for remote gaming in 2004, has continued to attract the international gaming community’s interest with “record” applications submitted to the LGA over the last 18 months to last June.