EU Court Ruling Lets Players Use Home Law to Sue Malta‑Licensed Operators
The Court of Justice of the European Union has ruled that players can rely on the laws of their country of residence when suing operators that lack a local licence.
LISTEN TO THIS ARTICLE:The CJEU concluded that, in disputes over unlicensed gambling, the applicable law is normally that of the place where the harm occurred – which the court treats as the player’s residence. The decision directly affects business models that have relied on Maltese licences to serve customers across the EU without taking local authorisation in every member state.
At the centre of the case was a dispute involving Titanium Brace Marketing, a subsidiary of SkillOnNet now in liquidation, whose customer in Austria sought to recover gambling losses and to hold two company directors personally liable under Austrian law. Although Titanium held a licence from the Malta Gaming Authority, it did not hold a licence in Austria. Austrian courts found that the player’s losses should be regarded as occurring in Austria and therefore governed by Austrian consumer protection and criminal provisions that prohibit unlicensed gambling.
Malta’s domestic legislation, commonly referred to as Bill 55, has long shielded B2C gaming operators from certain forms of director liability where activity is licensed by the Malta Gaming Authority. The CJEU’s interpretation threatens that shield by allowing national courts elsewhere in the EU to apply local rules to operators that target their residents without a local permit.
Legal practitioners warn the ruling could trigger a wave of litigation.
This shifts the legal battleground. Operators who assumed protection under a single EU licence now face the prospect of multiple, potentially conflicting national claims. Directors previously thought insulated may be exposed to personal liability in plaintiff-friendly jurisdictions.”
Operators and industry groups are already weighing strategic responses. Some may seek to obtain local authorisations in larger markets such as Germany, the Netherlands and Austria, while others could withdraw from jurisdictions where regulatory or enforcement risk is highest. Smaller operators operating through Malta could also reconsider corporate structures or increase compliance spending.
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Immediate Reactions and What Comes Next
Member states affected by the decision are preparing legal challenges and policy responses. Several EU governments have voiced concerns about cross-border consumer protection and the integrity of national regulatory regimes. The European Commission may be asked to provide guidance on how the single market principle interacts with national rules that criminalise or tightly regulate gambling.
John Hargreaves, a former regulatory adviser to operators in the iGaming sector, described the ruling as “a potential turning point” for the market. “If national courts consistently apply this approach, Malta’s competitive advantage as a pan‑EU gateway will be diminished. We could see a bifurcation where large operators secure multiple licences while smaller outfits exit or consolidate.”
For players, the decision could expand avenues for redress. Courts in Germany, Austria, the Netherlands and other member states have already seen instances where customers sought to void gambling contracts or to hold managers personally responsible when the operator lacked a local licence.
Industry bodies and Maltese authorities may seek to challenge or limit the practical effects of the ruling through appeals, clarifying legislation or bilateral regulatory cooperation. Meanwhile, affected operators will need to reassess legal risk, marketing practices and the jurisdictions in which they accept customers.
Legal Outlook and Industry Notes
The decision does not automatically invalidate Maltese licences but introduces a new layer of legal uncertainty for cross‑border operations. Expect litigation to increase in plaintiff‑friendly national courts and for regulators to coordinate more closely on enforcement and licensing standards. Stakeholders should monitor pending appeals and any guidance from the European Commission and national supervisory authorities, including the Malta Gaming Authority, for clarifying rules on cross‑border gambling services.
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