Could This Put Malta Back On The Grey List? Parliament Passes Bill Protecting Gaming Operators From Foreign Prosecution

In a move that has sent ripples through the European gaming industry, Malta’s Parliament has approved a bill aiming to shield the country’s gaming operators from prosecution abroad.

This move is particularly significant given the considerable decline in new gaming licenses issued by the Malta Gaming Authority (MGA), a downward trend that has stirred concerns within the industry.

Data analysis conducted by The Shift reveals a staggering 75% decrease in new gaming licenses issued by the MGA in 2022 compared to the peak year of 2018.

This decrease is largely attributed to Malta’s greylisting by the Financial Action Task Force (FATF) in 2021, which dented the confidence of potential registrants. The country was removed from the FATF grey list the following year.

Given that the iGaming industry contributes over 12% to the country’s GDP, as such, Economy Minister Silvio Schembri, on behalf of the MGA, proposed a new law intended to shield Maltese gaming companies from international prosecution.

The hope is that by portraying the MGA as a more lenient and cooperative authority, the new law could attract more prospective license applicants.

The newly approved Bill 55, known as the Gaming Amendment Bill, aims to prevent disruption to Malta’s gaming industry and, by extension, its economy.

In simple terms, if a gaming company is in compliance with Malta’s gaming laws, it is safe from prosecution, regardless of where it operates globally. The implementation of this bill marks a significant test for Europe’s gaming industry.

However, the bill’s introduction has drawn criticism from other European nations, particularly Germany, Austria, and Norway. These countries assert that a license in one European nation should not grant access to the entire region.

Numerous lawsuits reflecting these disagreements are currently underway, contributing to the evolving debate around what constitutes a “legal” gaming option in a particular country.

Legal experts Karim Weber and Benedikt Quarch challenge this viewpoint, accusing Malta of violating European law. They have petitioned the European Commission for clarification, warning of potential disruptions to the entire European trade industry and potential legal chaos if the EC does not intervene.

Do you think this move could risk putting Malta back on the FATF grey list?