Malta’s government has expressed concerns about several aspects of Ireland’s gambling law and has said it could lead to an increase of black market betting sites.
One of the main concerns is the potential restriction on certain games, which Malta believes could lead to an increase in unregulated gambling. They argue that if certain games are prevented from being played in Ireland, players might turn to unsafe and illegal alternatives.
Furthermore, Maltese officials have questioned the justification for the proposed limits on betting amounts and winnings for certain games. They argue that without empirical evidence, research and justification, these restrictions may be disproportionate. Malta also raises concerns about proposed gambling advertising restrictions and the exclusion of National Lottery ads from the legislation.
To voice their concerns, Malta has utilized the European Commission’s technical regulation information system (TRIS). This system allows EU member states to make submissions on proposed laws and changes in other countries to prevent trade barriers. By using TRIS, Malta aims to ensure that the proposed Irish legislation does not create obstacles for the gambling industry and trade between member states.
Malta is a prominent hub for betting companies and has experienced significant growth in the digital gambling sector. According to an analysis by KPMG, the sector accounts for more than 12 percent of Malta’s GDP, with more than 300 gaming companies employing 10,000 people on the island. With the potential restrictions on certain games and advertising, Malta is concerned about the impact on its thriving gambling industry.
One of the specific issues raised by Malta is the lack of clarity surrounding the definition of “relevant games” in the proposed Irish gambling law. Malta claims that this lack of clarity could impede the freedom of EU-based operators to provide services and establish games in Ireland. They argue that prohibition is not a proportionate and effective manner to regulate online gambling and that the absence of a regulated market may drive players towards unregulated options.
The Department of Justice in Ireland initiated a consultation process after receiving requests from the European Commission and Malta. However, the process has since ended without the government being asked to make changes to the bill. The Department of Justice emphasizes that the proposed law is a public health measure aimed at protecting citizens from gambling harm, particularly vulnerable individuals and younger people.
The concerns raised by Malta highlight the need for careful consideration and further empirical evidence when implementing gambling regulations. To avoid unintended consequences such as an increase in black market betting, it is crucial to strike a balance between regulation, consumer protection, and the freedom to provide services within the EU. Research and consultation with industry stakeholders should play a significant role in shaping effective and fair gambling legislation.
