The siege of Malta
Maltese authorities defend themselves against shielding allegations
Malta claims full EU compliance despite infringement procedure.
Breaking: California AG set to say fantasy sports is illegal.
Kalshi fights back against tribal intervention in the Maryland case.
ACMA targets social media influencers over illegal gambling promotion.
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Malta bill fight
Ol’ 55: Malta claims it is in full compliance with European Union rules after the bloc’s executive launched formal infringement proceedings over the country’s refusal to enforce foreign gambling judgments.
The Malta Gaming Authority (MGA) said Bill 55, now Article 56A of the Gaming Act, aligns with EU principles such as public policy exceptions in the recast Brussels I Regulation, which means judgments given in one member state can be enforced in all other member states.
Agents of shield: The European Commission alleges Malta is undermining the mutual recognition of court rulings by shielding MGA-licensed firms from liability abroad.
In Germany, Austria and the Netherlands, courts have ruled against Maltese-licensed betting sites, fueling the Commission’s case.
The MGA insisted the law does not grant blanket immunity but reaffirms Malta’s right to uphold its licensing regime and public policy.
Stumbling block: Bill 55, passed in 2023, blocks enforcement in Malta of any foreign ruling that conflicts with the legality of locally licensed gambling. The law protects license holders, executives and players from being sued if they acted in line with Maltese rules, even if they breached laws elsewhere.
Article 56A instructs Maltese courts to reject enforcement of foreign decisions tied to such cases, which has derailed efforts to reclaim losses.
Austria is currently arguing in the European Court of Justice that damage from unauthorized gambling occurs where the consumer is located, not where the company is registered.
Dr Doubledown: Rather than concede, the offshore hub is going all in on the regulatory sovereignty argument.
“As someone who’s worked closely on these matters, I’ve seen firsthand how critical it is to defend the integrity of these principles and our jurisdiction,” said Davinia Cutajar, partner at WH Partners in Malta.
“The question ultimately remains: How do we strike the right balance between cross-border enforcement in the EU and national autonomy?”
Regarding the Austrian cases, Cutajar said the Brussels I Regulation had provided a successful legal framework, adding that “foreign judgments that undermine our licensing framework will not be enforced blindly.”
Davinia Cutajar, partner at WH Partners on regulatory sovereignty: “This is exactly the position we argued in the first cases decided in Malta earlier this year, where the courts refused to enforce two Austrian judgments. The Brussels I Recast Regulation provided the legal foundation we needed. Article 56A, which was introduced later, simply confirmed Malta’s public policy and removed any lingering ambiguity.”
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Breaking
Crackdown: California AG Rob Bonta is reported to be ready to issue a legal opinion that all online fantasy sports games within the state are illegal, according to multiple sources who spoke to local media KCRA 3.
The opinion will finally settle an issue that has been in doubt for over a decade since former Vice President Kamala Harris was California AG.
The Coalition for Fantasy Sports told KCRA it was "shocking” that the state would deny Californians a product they had been playing for “more than a decade.”
Sacra blur: Separately, the California Nations Indian Gaming Association has been circulating a letter to legislators in Sacramento saying they understand that "certain fantasy sports operators” may be seeking to introduce legislation to regulate and tax their operations.
The letter said that “should a bill be introduced before the Attorney General’s opinion is released and fully evaluated, we will be compelled to oppose it.”
On maneuvers: All this is happening at the same time the California tribes are backing a legislative maneuver to push an anti-sweepstakes measure that would criminalize not only operators but games producers and providers, as well as affiliates.
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Massachusetts: Bills that would legalize iCasino in Massachusetts received a first hearing in front of a joint legislative committee earlier this week. The bills propose two iCasino platform partnerships per B&M casino in the state, with the option to license an additional four unconnected platforms. Gaming revenue would be taxed at a 20% rate, with a licensing fee of $5m to be paid every five years.
Brazil: The Secretariat of Prizes and Bets is seeking views on how to improve the distribution of online gaming and sports-betting tax revenue. The consultation will last 45 days.
Curaçao: Online licenses issued by the Curaçao Gaming Authority will be extended until December this year, ahead of the switch to its new licensing regulations expected to be implemented the same month. The extension will give licensees more time to gain compliance with the new licensing regulations, the authority said.
New Zealand: The Department of Internal Affairs has asked online operators interested in applying for an iGaming license to register with the government, as discussions around potential legislation to legalize the business continue. The New Zealand government is expected to introduce a bill early next year and is looking to award up to 15 operator licenses.
Smart thinking: The AGA has launched a new RG tool called the Play Smart Consumer Hub, designed to encourage players to make informed choices and “develop habits that keep gaming fun,” according to CEO Bill Miller.
Danish self-exclusion figures: The Danish gambling regulator Spillemyndigheden said 60,000 people have now signed up to its self-exclusion register, with the “vast majority” being men under the age of 40. In the category of under-20s, 96% are men. Anders Dorph, director of Spillemyndigheden, said the figures confirm a trend that young men are “particularly at risk of problematic gambling behavior.”
Thailand: A majority of Thailand residents oppose the legalization of gaming through the entertainment complex bill, according to a survey from the National Institute of Development Administration. The survey found 57% of 1,310 respondents opposed entertainment complexes with casinos, with only 24% in favor. Additionally, 62% of respondents called for a national referendum on the bill.
Commercial
Xpoint has announced a deal to provide geolocation services and anti-fraud technology to High 5 Games. High Roller Technologies has announced a partnership with onboarding and identity solutions provider Checkin.com to leverage its ID verification products and services in Ontario.
Careers
Light & Wonder has confirmed that James Sottile, its EVP and chief legal officer, will retire from the company effective December 31. He will be succeeded by Susan Dawson, currently SVP and deputy general counsel. Dawson has been with Light & Wonder since 2012 and has held her current title since 2018.
Compliance and Legal Officer – Malta
Head of Compliance – Limassol, Cyprus
Senior KYC Operator – Cyprus
Kalshi Maryland pushback
I’m not having that: The prediction markets operator Kalshi – to whom the appellation ‘insurgent’ could probably be added – is fighting back against the attempt by the tribes to wedge themselves into the conversation in Maryland.
A day after a coalition of 27 federally recognised Indian tribes and seven tribal associations filed a motion for leave to file an amicus brief in the US District Court for the District of Maryland on Monday, Kalshi submitted a statement of opposition to the motion.
It’s too late baby: In its filing, Kalshi argued the tribes missed a crucial deadline and did not add any important new information to the case.
Kalshi noted that typically amicus briefs must be filed within seven days of the initial suit, but that the tribes’ brief was submitted more than a month afterwards.
The company’s lawyers asserted the motion is too late to be considered since its response to the Maryland regulator’s arguments to reject the injunction is due in two days.
Kalshi said in its filing that it “wishes to be accommodating of parties claiming an interest in the ongoing preemption litigation, and has consented to all amicus briefs in the now-pending Third Circuit appeal.”
“But this putative amicus brief is untimely and unhelpful,” it added.
Taking on all-comers: The Maryland maneuvering comes a week after the company saw a blizzard of amicus briefs lodged in support of New Jersey’s effort to kick it out of the state.
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ACMA’s influencer move
Bad influence: The Australian Communications and Media Authority (ACMA) has issued a warning to social media influencers regarding the promotion or facilitation of illegal online gambling targeting Australian users.
Influencers found to be promoting offshore sites could be liable to fines of up to A$2.5m ($1.6m), according to ACMA.
Key concerns identified by the regulator include the live-streaming of gameplay on offshore casino sites, the embedding of affiliate links or affiliate-style promotions and the running of giveaways tied to illegal services.
ACMA emphasizes that activities such as these circumvent consumer protections, such as age and identity verification, and elevate risk, especially among younger audiences.
“If you are an influencer and you profit from promoting illegal games and wagering services to Australians you are breaking the law,” ACMA said in a statement.
The regulator noted that younger Australians are particularly vulnerable to such promotions, which can lead to addictive behavior and financial harm.
I am the law: ACMA is actively monitoring social channels such as Instagram, TikTok, Facebook and Twitch for affiliate content linked to offshore gambling. The regulator is also encouraging public reporting of suspect influencer activity.
The regulator said influencers should cross-check gambling references with ACMA’s register of licensed operators before featuring such content. Affiliate networks and marketing teams must reassess influencer partnerships to ensure compliance with Australia’s Interactive Gambling Act.
Brands and agencies working with influencers in sports, esports or gambling-adjacent niches must maintain due diligence processes regarding licensing and content legality.
Companies should implement comprehensive vetting of affiliate links and promotional messaging, especially during live streams or competitions.
Calendar
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