EU Court Criticizes Malta’s Refusal to Enforce Rulings on Returning Gambling Losses

^{Pictured: Advocate General of the Court of Justice of the European Union Nicholas Emiliou}

Advocate General of the Court of Justice of the European Union Nicholas Emiliou criticised a provision in Maltese law that allows local courts to refuse to enforce rulings from other EU member states ordering the reimbursement of gambling losses.

The opinion relates to a case in Austria, where a player is seeking to recover losses incurred with a Malta-licensed operator. Such claims are not uncommon in the European Union: if a company operates in a country without a local licence, courts may deem the bets unlawful and order the operator to compensate the player.

The issue arises at the enforcement stage. In 2023, Malta amended its gambling law to allow its courts to decline recognition of foreign judgments in such cases.

In practice, the provision creates a mechanism that shields Malta-licensed operators from claims brought by players in other EU countries.

The measure is aimed at protecting Malta’s gambling industry, which plays a significant role in the country’s economy.

Emiliou said the measure runs counter to a fundamental EU principle: judicial decisions issued in one member state must be recognised and enforced in another. Malta, he said, cannot refuse enforcement simply because it disagrees with the conclusions of a foreign court.

He also stressed that holding a Maltese licence does not grant operators the right to operate freely across the EU. Each member state regulates its own gambling market and may restrict or prohibit such activities within its territory.

The Advocate General’s opinion is advisory and not binding. A final ruling will be issued by the Court of Justice of the European Union.

Gambling Park previously reported that Malta is considering introducing regulation for prediction markets.