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Dutch Lawyers Cry Foul Over Malta's Bill 55 Amendment
By Shane Addinall Aug 31, 2023 LegalityA group of lawyers in the Netherlands that represent players in civil suits against licensed Malta casinos have called for Minister Weerwind to stand against Bill 55. Do they have a legitimate concern, or just protecting a sizable revenue source?Malta’s seemingly logical decision to protect its licensed casinos from legal action stemming from other members of the EU has caused quite the furore in the region. We recently reported on the concerns the German Gambling Authority (GGL) raised and how this has led to friction between the countries.
The latest pushback against the bill is now from the Netherlands. However, it is not the Dutch Gaming Authority making the most noise but a group of lawyers who feel it flies in the face of the established EU legal precedent.
Lawyers Are Going Lawyer
Nothing brings out the passion and determination for justice in a group of lawyers like the possibility that their clients will lose out on a healthy payday.
This is the feeling one gets when reading the impassioned joint open letter posted online to the Dutch minister for legal protection, Franc Weerwind, by Loovenstein Advocates and the Van Diepen Van der Kroef law firm.
To its credit, the letter does convey that the group is biased, stating:
Quote“This law has led to concerns among a large group of Dutch people who have participated (or are still participating) in games of chance at gambling providers based in Malta. The undersigned are involved as lawyers with victims who have a dispute with these providers.”
It does then clarify its concerns with the protective nature of the amendments to the Malta gaming laws, saying:
Quote“In these proceedings, it is claimed that the gambling companies that offer or offered games of chance without a required license from the Gaming Authority and that in many cases have seriously violated the duty of care, compensate consumers for the losses. - The illegal provision of games of chance constitutes a violation of Article 1 of the Betting and Gaming Act.”
They continue that these casinos are believed to have committed financial crimes against Dutch residents, and as such, these “victims” are due, at the very least, a full refund of their deposits and losses, which falls within the realm of civil and commercial courts.
The open letter calls for the Dutch government to take Malta to task for its “contempt of the Rule of law enshrined in the EU treaties", explicitly mentioning the 500,000 potential clients it would lose out on should the amendment be allowed to remain in force.
Malta Stands Behind Its Licensees
The above assertion that residents of the EU have the right to civil compensation when willingly participating in trade with a regulated EU entity is the very reason Malta created a safety net for its licensees.
A growing number of licensed gambling businesses were facing civil suits from foreign jurisdictions, and the cases primarily revolved around countries that allowed their residents to play online without fear of legal action but felt justified in supporting claims that these players lost their deposits and now wanted refunds.
These markets were then turning around and suing the online casinos and other gambling sites when these players lost money because games of chance were not regulated within their borders or the specific operator did not hold their unique license.
Given that the Maltese Gambling Act is fully compliant with EU regulations, the Malta Gaming Authority (MGA) felt that licensees were not adequately protected from unwarranted international legal action, as they should be allowed to trade within the EU with an MGA-approved gambling license freely.
Suppose the online gambling operators offered services they were licensed to offer, given that their license aligns with EU law. In that case, there should be no legal grounds for them to be sued for participating in an accepted trade exchange within the union. And from this position, Bill 55 was born and will continue to operate according to the MGA.
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