Malta introduced new legislation to provide gaming companies with a stable and secure regulatory foothold. However, it could have implications outside the country’s borders.
According to betting directory sources, there is an increase in the number of lawsuits filed against operators based in Malta. Thus, the Malta government considered introducing more legal protections for gaming companies.
The proposed legislation will protect gaming companies from liabilities from legal actions filed in foreign jurisdictions. However, lawyers from other European countries criticized the proposed measure. They said Malta is trying to avoid local courts.
Malta Introduced New Legislation to Shield Gaming Firms
According to gambling industry news reports, the planned change is in response to rising worries about the dangers of operators being sued in other countries. Malta has established explicit norms and constraints to help operators build their operations and offer safe and responsible gaming services.
Those selling their services on the unregulated “gray market” in Europe would benefit most from introducing such laws. According to pay per head sportsbook sources, these businesses typically face fewer regulations and more hostility from authorities in their communities. As a result, such enterprises could function quite freely under the new bill.
The legislation adressed the problem of forum shopping. It is the act in which plaintiffs opt to file their claims in a different jurisdiction because they believe it would be more favorable than the operator’s primary licensing jurisdiction. By outlining strict requirements for enforcing foreign jurisdictions, Malta hopes to deter abusive business practices. Also, the measure aims to foster a more level playing field for businesses.
The European Commission has been contacted by attorneys from Austria and Germany who claim Malta is interfering with European judicial processes. Once passed, several judgments against Maltese operators may be overturned. Also, it will immediately impede their enforcement.