Malta, as you may know it, is one of the world’s top gambling markets. According to recent reports, the country’s iGaming market now peaks at $284 million and could continue expanding at a CAGR of 1.58% within the next few years. Well, among the reasons fuelling this growth is the presence of the Malta Gaming Authority, which continues to update its oversight as market demand evolves. These updates are usually focused on creating a secure gambling ecosystem where gamblers can engage peacefully.

Mark you: most gamblers will only interact with brands they trust. One way to strengthen brand trust is to acquire a license from a reputable regulator. Agreeing with this, igaming.com says, “A strong regulatory authority with a well-defined framework increases the value of an MGA license and makes it easier to distinguish reputable operators from less trustworthy ones.” But again, the Malta iGaming industry doesn’t exist on its own. Moves like the recent EU’s push to tighten rules around online gambling could reshape this industry.

If you can remember, there was an amendment to Malta’s Gaming Act through Bill 55 in 2023, mandating the country’s courts to reject foreign court verdicts undermining ‘the validity of providing gaming experiences in or from Malta.’ However, just recently, on 18th June, the EU confirmed opening infringement proceedings against this country for failing to conform to its judgment on gambling. However, Malta and its regulator, MGA, do not agree with this stance. So, will these new rules ultimately affect Malta’s iGaming industry?

Learn about the whys of the regulations first

Since 2020, online gambling has been drawing the attention of millions of fans across the European continent. According to a recent Euronews article, over 38 million people were reported to engage with digital gambling platforms in 2024 alone, a 19% increase from the 2023 figure.

As more Europeans have turned to this industry, the number of those looking for help to stop problem gambling has also been increasing. Worldwide, 54.7 million men and 25.3 million women are believed to need this help. And in Europe, things are no different. Malta Today says the problem ranges from 2.9% in women to 4.5% in men.

This addiction can severely harm a player’s finances, relationships and even cause mental illness. As such, lawmakers across the EU and national reviews have been focusing on creating safer policies to protect players from such side effects.  

What do the regulations contain

The Commission established the Digital Service Act (DSA) to help address the growing challenges of illegal content, operational transparency and user protection in the digital space. And while DSA doesn’t directly target gambling operators, its relevance is in the notion of illegal online content and in restricting digital marketing.

According to the act, all digital platforms should remove any content that the EU laws consider illegal. Something to note: The act in itself doesn’t define illegal gambling services, as that is the responsibility of individual member states.

And as much as MGA has aligned with some EU proposals, there are others it doesn’t fully agree with. Just recently, the country found itself in hot water with the European Commission over Article 56A, a 2023 amendment to its Gaming Act. The article was designed to protect Malta-licensed online gaming firms from foreign court judgments that deem their services illegal. Essentially, it said Malta wouldn’t enforce such rulings.

The Commission argues that Article 56A violates EU law — especially the principles of mutual trust, jurisdiction and recognition of judgments across member states. It says Malta’s law could enable operators to unfairly dodge accountability in other countries. Malta, via its Gaming Authority (MGA), defended Article 56A, claiming the law is consistent with its interpretation of the EU’s Treaties (notably the Treaty on the Functioning of the EU), and does not impose a total ban on foreign judgments.

The country was given two months to respond to the Commission’s formal warning. And if a satisfactory resolution is not reached, the case could escalate further to the European Court of Justice.

How is Malta likely to be affected?

The growing concerns of money laundering in Malta’s ecosystem have consistently welcomed increased scrutiny from the EU. In fact, the Commission has, in the past, placed the country on a grey list, requiring it to adopt tighter measures for preventing these crimes. This list forced the MGA to start working with the Malta Financial Services Authority to ensure proper regulations in the betting industry.

If you’re keen, you may have seen the regulator fine some gaming companies that failed to implement proper KYC standards. For instance, in 2024, it suspended two licenses and revoked eight. Such moves could positively impact the industry by reducing fraudulent activities and thus improving player confidence. The more confident players become, the more likely they will be to participate in it, resulting in further growth.

On the negative, the lack of a fully harmonized, EU-wide iGaming framework may create a challenging environment for Malta-based operators. And if they are to serve multiple European markets effectively, they will have to manage a patchwork of different tax and player protection rules. That’s not a piece of cake! To survive through these challenges, operators will have to choose between navigating fragmented markets and focusing on locally regulated countries. Well, this could lead to strategic shifts and even potential market exits.