UK Companies Eye EU Targeting of Malta Gambling Law in Consumer Protection Crackdown

_{Licensed casinos call for tighter EU enforcement as illegal operators dominate the online market. (Image: European Parliament)}

As of the end of 2020, Malta remained one of the world’s most influential hubs for online gambling, hosting 314 licensed gaming companies, many of which serve UK customers or are UK-based brands such as Betsson, Tipico and Betfair.

Roughly 10% of all online gaming firms globally are registered in Malta. While the precise number of UK-based firms operating there isn’t specified, the UK remains one of Malta’s key markets due to its mature gambling landscape and customer base.

For UK businesses, Malta offers low corporate tax (effective rate of 5%), a streamlined license application process (12–16 weeks), and no gaming tax on non-Maltese customers, making it an attractive location for digital gambling operations.

Now the European Commission has launched legal action against Malta over a controversial gambling law, responding to growing concerns about the EU’s patchy enforcement of gambling regulations. The move follows a parliamentary exchange last month between Italian MEP Carolina Morace and the Commission over the rise of unlicensed online gambling across Europe.

In a written response published on 18 June 2025, the Commission confirmed it had opened infringement proceedings against over Bill 55, which limits the enforceability of foreign judgments against gaming companies based in Malta. The law, passed in 2023, has drawn criticism for allegedly shielding operators from accountability elsewhere in the EU.

Legal loopholes in the Single Market

At the centre of the controversy is Malta’s position as a major hub for online gambling licenses. Although it hosts many regulated operators, the island nation has faced increasing scrutiny from EU lawmakers for enabling cross-border activity that bypasses national consumer protection laws.

Bill 55, formally known as the Gaming (Amendment) Act 2023, prohibits Maltese courts from recognising or enforcing foreign judgments related to gambling activities that are legal under Maltese law. Critics argue this undermines judicial cooperation within the EU’s Single Market and hampers efforts to tackle illegal gambling.

In her parliamentary question, Morace highlighted research suggesting that up to 70% of online gambling in Europe now takes place via unlicensed platforms, often operating from jurisdictions with looser rules.

Industry backs EU-level enforcement

The European Casino Association (ECA), which represents licensed land-based casinos across the EU, welcomed the Commission’s intervention.

“We share MEP Morace’s concerns about the estimated 70% of online gambling that takes place on unlicensed platforms. In a statement, the association said: 

 "This not only undermines consumer protection but also creates unfair competition for licensed operators who comply with strict regulatory standards,” 

The ECA urged the Commission to strengthen enforcement against illegal cross-border gambling and support mutual recognition of court decisions within the bloc.

“As representatives of the licensed casino industry, we support: effectively ending cross-border gambling offers that are unlicensed in the countries where consumers are targeted; effective enforcement mechanisms that protect consumers; and mutual recognition of judicial decisions across all Member States.”

The association added it hoped the infringement case would “contribute to a more level playing field for all legitimate operators and better protection for European consumers.”

Malta has Several Weeks to Respond

Infringement proceedings under EU law are typically multi-stage. Malta now has several weeks to respond to the Commission’s concerns. If its explanation is deemed unsatisfactory, the case could be referred to the Court of Justice of the European Union (CJEU).

This isn’t the first time Malta’s gambling regime has attracted EU attention. A 2021 report by the European Parliament raised flags over alleged money laundering and regulatory inconsistencies tied to Malta’s licensees. While the country has introduced new oversight measures, Bill 55 has reignited debate over its commitment to EU legal norms.

Cross Border Consumer Protection a Pressing Issue

With online gambling revenues exceeding €35 billion annually across Europe, the balance between national sovereignty and cross-border consumer protections has become a pressing issue. Licensed operators argue that lax enforcement not only erodes trust in the sector but also enables criminal networks to flourish in the shadows.

For players, the stakes are personal. Gambling on unlicensed sites often means fewer safeguards, no recourse in disputes, and greater exposure to fraud.

By confronting one of its own member states, the EU is signalling a tougher stance, and that could reshape the rules of play for the entire industry.