MEP Agius urges EU action on online gaming regulation
EU’s fragmented industry regulation is back in the news as Maltese MEP Peter Agius (EPP, MT) has called on European Commission Vice-President Laurence Sejourne to address legal and regulatory inconsistencies in the EU’s online gaming sector. Agius warned that the Commission’s inaction is threatening the free movement of gaming services, fostering monopolistic practices, and undermining consumer protection.
Agius stressed that the inaction poses a risk to the industry, particularly the thousands of jobs in Malta’s thriving gaming industry. “European freedom of movement in online gaming services is being lost in legal battles and conflicting.
He criticised the Commission for stepping back from its role as a regulatory enforcer since 2017, when it dropped all pending infringement cases. “Up till a few years ago, the European Commission imposed a measure of proportionality and non-discrimination on member states. This stopped in 2017 when the Commission took a step back.”
In exclusive comments to SiGMA about his letter, Agius added: “Europe stands for free movement and consumer rights. Both are at risk right now in the online gaming sector where legally registered companies have to deal with daily legal conflicts of jurisdictions while the illegal operators prosper. The European Commission is meant to be the guardian of free movement rights. Europe cannot keep turning a blind eye to the legal jungle in online gaming. This is why I am asking Vice-President Sejourne in charge of Internal Market and Commissioner Mc Grath in charge of Rule of Law to act upon their responsibilities and restore order to the internal market in gaming services. Commission action is imperative, not only to ensure fairness and legal ceertainty but to protect consumers which can benefit from the high player protection standards obtaining in regulated jurisdictions like Malta.”
Legal conflicts in Austria and Germany
Agius referred to the EU’s lack of harmonisation of online gaming regulation, citing ongoing disputes in Austria and Germany as prime examples of the fragmentation, where conflicting court rulings have exposed vulnerabilities in the system, particularly regarding Maltese operators. “The recent legal wranglings and conflict of jurisdiction on court cases by losing bidders in Austria and Germany against operators in Malta show it is now time for the Commission to urgently act again to safeguard EU freedoms,” he said. On 27 February 2025, Malta’s First Hall of the Civil Court ruled against the enforcement of Austrian court judgements that had ordered MGA-licensed gaming operators to refund player losses.
These disputes have raised concerns about the lack of harmonisation across member states, which Agius argues is essential to ensure a fair and competitive market. The Maltese gaming sector, which employs thousands and adheres to some of Europe’s highest regulatory standards, has been disproportionately affected by these challenges. In response to the ongoing litigation, the Maltese Parliament approved Article 56A of the Malta Gaming Act that seeks to protect MGA-licensed operators, and which was dubbed by the German Gaming Regulator (Joint Gambling Authority of the Länder or GGL) as a “protective shield”. Austrian and German lawyers claim that the amendment is an attempt by the Maltese government to undermine European rule of law and block the fundamental rights of EU citizens and residents.
The Third Party Litigation Fund
In his letter, Agius appealed to European Commission to intervene and restore internal market freedoms for online gaming. He reiterated the European Parliament’s call for the regulation of the Third Party Litigation Funding (TPLF), which allows losing bidders to pool resources for joint legal action against Maltese operators. The practice has been criticised for exploiting legal loopholes, with Agius’ letter arguing that “The practice needs to be regulated to prevent further abuse at the expense of consumers and businesses.”
Broader implications for Malta’s economy
Agius stressed that protecting Malta’s gaming industry is crucial for the country’s economic sustainability. “Malta must protect and nurture its gaming industry to ensure long-term economic sustainability and competitiveness,” he said. He urged the European Commission to take decisive action before more damage is done.
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