(AsiaGameHub) –   A recent preliminary ruling from the European Court of Justice (CJEU) has further built momentum pushing back against the application of Article 56A – the legal provision used by Maltese courts to reject the enforceability of foreign rulings on locally domiciled igaming businesses. 

The CJEU has delivered its judgment on a 2021 dispute involving Malta-licensed Mr Green, which was ordered by Austrian courts to refund a domestic customer for their gambling losses – an order Mr Green declined to comply with. 

After exhausting all domestic legal procedures, the claimant requested Austrian courts in 2024 to review the use of a European Account Preservation Order (EAPO) on Mr Green’s funds held in Ireland, Luxembourg and Sweden, which is described as “a legal mechanism that allows creditors to freeze a debtor’s bank funds across different EU member states through a single application”. 

The CJEU has now determined that the Austrian court may take the existence of Article 56A into account when making its decision – a protective measure formerly known as Bill 55 and implemented since 2023 to block or limit foreign legal accountability for Malta-licensed operators.

The ruling also established that Austrian courts may factor in the prior conduct of the debtor, which in this case refers to Mr Green’s decision to cut ties with its Austrian payment service provider following the 2021 court order.

This decision further reinforces the CJEU’s position that Article 56A cannot be invoked by Malta to shield its licensees from legal action initiated by courts across the EU.

There are currently a number of ongoing cases involving players from Austria and Germany who are seeking to recover funds spent on Malta-licensed gaming platforms under their respective national laws.

In cases where Article 56A has been cited by Malta’s courts, the CJEU has ruled that the national laws of the jurisdiction where the players were residing at the time of spending take priority over Maltese legislation.

This stance, coupled with the CJEU’s confirmation that Bill 55 can be considered when evaluating the use of EAPOs to target Malta-based companies, further erodes the protections Malta’s rules offer its licensees.