Key Moments:
- Ambassador Chris Farrugia described gaming as an essential part of the EU’s digital economy, supporting diverse high-value roles and services.
- The need to simplify rules without stifling innovation or legal certainty has been reinforced by recent EU policy discussions and new legislative measures.
- Current EU laws like the Digital Services Act impact online gaming, but there is no unified EU-level regulatory framework for the sector so far.
Gaming’s Role in the EU Digital Economy
During an interview with SiGMA TV, Ambassador Chris Farrugia, Deputy Permanent Representative of Malta to the EU, presented the gaming industry as a key driver within the European Union’s digital economy. He underscored gaming’s contribution to quality employment in IT, cybersecurity, data management, and regulatory compliance, alongside a network of support services such as payment processing, software development, marketing, and consulting. The European Commission’s drive to introduce legislative simplification packages this year highlights an effort to reduce bureaucratic barriers and enhance European competitiveness, particularly in the face of uneven post-pandemic recovery and mounting global competition.
Does the EU need harmonised gaming regulation?
Ambassador Chris Farrugia breaks down the future of gaming in the digital economy, highlighting the need for smarter EU regulation and how frameworks like the AI Act and Digital Services Act (DSA) are reshaping the landscape.
Key… pic.twitter.com/j805jCcrWe
— SiGMA World (@SiGMAworld_) September 15, 2025
Striking a Balance: Innovation Versus Regulation
Farrugia addressed the complex policy challenge of fostering innovation while ensuring consumer protection and avoiding excessive regulation. He noted the influence of the AI Act, which calls for national testing environments—or sandboxes—allowing innovators to trial AI and blockchain tools in a controlled regulatory space before they reach the market. He emphasized Malta’s commitment to technical sandboxes that promote responsible development. Farrugia distinguished carefully considered simplification from outright deregulation, highlighting the need for proportional measures that maintain legal clarity and don’t overload businesses with unnecessary compliance demands.
Should the EU Harmonize Gaming Regulation?
On the issue of harmonization, Farrugia stated his view that not all sectors require a one-size-fits-all approach. He pointed out that online gaming is not currently covered by a unified EU framework, but is subject to overarching rules such as the Digital Services Act, which applies to various online services by setting requirements in areas like the removal of illegal content. Farrugia suggested that targeted harmonization, for example in consumer protection, could be considered depending on the depth and nature of the legislation involved, but argued against sweeping, sector-specific regulation. He advocated for continued dialogue and institutional discussions, given gaming’s cross-border character and the significance of ensuring a single market where services can be offered freely.
Malta’s Perspective and Ongoing Developments
Farrugia reaffirmed Malta’s stance that while total harmonization may not be suitable for every sector, robust discussions should continue as cross-border elements of gaming regulation and the single market evolve. The current landscape allows online gaming services to be impacted by broad EU regulations like the Digital Services Act, even in the absence of a dedicated sector-specific regime. Maintaining channels for dialogue remains a high priority to address these evolving regulatory dimensions.
Future Direction for EU Gaming Regulation
Looking ahead, the EU is positioned to refine its approach by enhancing competitiveness and innovation—while sustaining strong consumer and anti-money laundering protections—through the use of horizontal legislative instruments and emerging technologies, rather than through the adoption of an EU-wide sector-specific regulatory regime at this point. For continued conversations on growth and regulation in the industry, stakeholders can look to upcoming events such as SiGMA Central Europe, set to take place in Rome from 3 to 6 November 2025.
- Author
Daniel Williams
