Key Moments:
- European Commissioner Michael McGrath confirmed that no Malta-licensed gaming company has received EU funding, either directly or indirectly.
- The European Commission launched infringement proceedings against Malta after the introduction of Article 56A (“Bill 55”) to its Gaming Act.
- As of 9 September 2025, Brussels is reviewing Malta’s defense and may escalate the legal procedure to the Court of Justice of the European Union.
Clarification on EU Funding for Malta-Licensed iGaming Operators
European Commissioner Michael McGrath, who oversees democracy, justice, the rule of law, and consumer protection, has stated that gaming companies licensed in Malta have not been recipients of EU funds, whether directly or indirectly. This announcement followed a parliamentary inquiry by MEP Daniel Freund (Greens/EFA), who expressed concerns about the possibility of European financial support being extended to significant iGaming operators under Malta’s regulatory framework.
Malta’s Central Role and the Bill 55 Dispute
Malta currently has 321 licensed gaming companies, including industry leaders such as Flutter (PokerStars), Bet365, 888, Betsson, Betway, and Tipico. This concentration highlights Malta’s importance as a European iGaming center. Controversy has emerged from the introduction of Article 56A, widely known as “Bill 55,” to Malta’s Gaming Act in 2023. This amendment allows Maltese courts to dismiss foreign judicial decisions if these conflict with domestic law or public policy. The European Commission views this as detrimental to mutual trust among Member States and as an obstacle to the movement of judicial decisions across the EU.
Ongoing Legal Procedure Between Malta and the European Commission
In June 2025, the European Commission initiated formal infringement proceedings against Malta, sending a letter of formal notice. The Commission asserted that the new law discourages foreign legal action in Malta, even when the jurisdictional basis exists under the Brussels I Recast Regulation.
Malta’s government and the Malta Gaming Authority (MGA) have argued that Article 56A does not introduce reform but rather consolidates a previously established public policy exception that aligns with European law. They claim the measure protects Malta’s regulatory approach, which is based on a “point-of-supply” system, and facilitates cross-border oversight.
Next Steps and Potential Implications
As of 9 September 2025, the dispute has yet to be resolved. Following the letter of formal notice, Malta responded with its defense, and the European Commission is currently reviewing these arguments. Depending on its assessment, the Commission could choose to escalate the case by issuing a “reasoned opinion,” representing a final warning before potentially involving the Court of Justice of the European Union.
If escalated and the court issues a binding decision, Malta-licensed operators may face additional legal challenges in other Member States, with consequences such as higher litigation expenses and increased regulatory uncertainty throughout the EU for the online gaming sector.
Industry and Legislative Impact
At stake is the broader relationship between Member State sovereignty and the European Union’s efforts to create a harmonized legal environment for the digital single market. The outcome could reshape both the regulatory framework for online gaming and the principles of judicial cooperation within the EU. Regulators, investors, and industry participants are closely watching this legal confrontation, recognizing its significance for the future of iGaming across Europe.
Looking Ahead: Event Spotlight
All roads lead to Rome from November 3 to 6, 2025. SiGMA Central Europe will convene 30,000 delegates, 1,200 exhibitors, and more than 700 speakers at Fiera Roma. The event aims to unite innovators and shape the future of the sector.
| Key Parties Involved | Role |
|---|---|
| European Commission | Launched infringement proceedings; reviewing Malta’s defense |
| Malta Gaming Authority (MGA) | Defends national legislative approach |
| Malta-licensed Operators | Potentially impacted by increased litigation risk |
| MEP Daniel Freund (Greens/EFA) | Raised initial EU funding question |
- Author
Daniel Williams
