Following a gambling dispute raised by a German internet gambler about unregulated access to Malta-based Lottoland, EU’s Court of Justice is set to issue a landmark decision. It remains to be seen how the regulation will affect European gambling regulations.
The European Court of Justice is reviewing a case that could change how online gambling works across Europe. This move comes at a time when there’s growing pressure between what each country wants for itself and the European Union’s shared regulations.
At the center of this case is Case C-440 which started with a 2021 lawsuit by a German player against Malta-licensed Lottoland. The plaintiff claimed that even though Lottoland didn’t have a license to operate in Germany, he was still able to gamble there.
Lawyer Volker Ramge later took over the lawsuit and broadened it with more German players in the complaint. He also added more Maltese gambling companies that avoided Germany’s gambling rules.
Both sides agreed to ask the European Court to decide if Germany’s Interstate Treaty on Gambling in place until 2021 complies with EU law. The court will pay particular interest to the principles of free movement of services in the Treaty on the Functioning of the European Union.
Lottoland website:
The Maltese government has spoken out firmly, saying Germany is stepping too far into Malta’s area of control. They point out that Malta has strict gambling rules, and thousands of players (mostly German) send self-exclusion requests annually.
Maltese officials say it’s unfair to call gambling companies’ illegal’ just because they’re licensed in a different country. They believe this harms both the shared EU market and the rules made to keep players safe.
At the center of the debate is Malta's Bill 55. This 2023 law grants Maltese courts the right of refusal for enforcing any ‘foreign judgments centered on the online gambling sector.’ The Malta Gaming Authority argues that it’s an important way to protect gambling companies licensed in Malta from legal cases that go against the EU’s idea of a free market.
But not everyone agrees. Other countries in the EU, especially Germany, have criticized the law. The country’s gambling regulator, Gemeinsamen Glücksspielbehörde der Länder, called it ‘incompatible EU laws.’ Some legal experts also say that Bill 55 violates the Treaty on the Functioning of the EU.
The European Commission is currently looking into whether Bill 55 follows EU rules. At the same time, the Vienna Commercial Court has sent crucial questions about the law to the ECJ.
This situation brings a big risk for Malta. This case could open the door for players from other EU countries to file many compensation claims if the ECJ decides against them. Some experts say the total cost could reach €1 billion ($1.14 billion).
A critical part of the court’s hearing on April 9 was about whether Maltese courts have the power to judge if Germany’s gambling law fits with EU rules. But Germany has spoken out against being left out of a case that questions its own laws.
The Advocate General is set to share his opinion on the issue on July 10 at the ECJ’s Palais de la Cour de Justice in Luxembourg. The final decision from the court is projected to come within the next few months.
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