Article 56A In Action: Malta's Public Policy Shield Confirmed By The Courts

A recent judgment of the Maltese courts has delivered the first clear judicial endorsement of Article 56A of the Gaming Act, confirming Malta's position on the non-recognition of foreign judgments that undermine the validity of gaming services provided under a  Malta Gaming Authority (“MGA”) licence.

Brief Overview

The case arose from an Austrian judgment ordering an MGA-licensed operator, Virtual Digital Services Limited, to refund approximately €488,000 to an Austrian player. The Austrian court concluded that the operator's services were unlawful under Austrian gambling law because the operator did not hold a local licence. The claimant sought to have that judgment recognised and enforced in Malta under Regulation (EU) 1215/2012. The Maltese operator resisted recognition, relying, among other grounds, on Article 56A of the Gaming Act. The Court accepted this defence and refused recognition.