In a turn of events, the MGA Macolin convention participation could happen any time soon. The authority is now seeking legal advice to confirm its position. (Photo by Karl Paul Baldacchino on Unsplash)
The Macolin Convention defines rules that cover what defines illegal sports betting. For the Malta Gaming Authority (MGA) licensing authority, it is a risky coalition to join because some MGA operators would break the convention’s rules.
In 2014, the MGA had considered adopting the agreement but decided against it after careful consideration. One of the main reasons is that one of the definitions of sports betting is implementing a rule that forbids operators from offering sports books and casino games in countries where the activity is illegal.
Ultimately, that would mean the MGA would need to force sportsbook and online casino service operators to restrict or close some of their members’ accounts. For some operators, not having the legal impetus to target these markers would lessen their target audience.
Another issue is that the MGA licensing would become less appealing for some aggregator platforms and operators. With that being said, the MGA forbids operators from accepting customers from specific markets where it is illegal to gamble online or where domestic licensing is already in place.
As per the reputable online casinos hub here on Casinoplusbonus, which covers casino licensing, MGA operators cannot target the UK, USA, or Australian markets. This is because domestic licensing and gambling laws are already in place for these countries.
Pressure to Join the Macolin Convention from the FATF
With pressure for the MGA to align with international monetary agreements to prevent money laundering and other illegal monetary activities, the MGA has sought legal advice from legal firm Van Bael & Bellis on whether to join the Macolin Convention. According to reports coming out of Malta, the MGA has a contract worth € 22,750 for legal advice.
One organisation encouraging the MGA to join is the Financial Action Task Force (FATF). Malta is close to the line regarding the FATF’s financial grey list evaluation. However, if the country’s gambling industry joined the Macolin Convention, this would work in the country’s favour. Now, we must remember that Malta is only an online gambling hub but also supports crypto companies and banks, plus, the country has a large tech industry.
Pressure will also come from certain officials and policymakers within Malta’s government ranks to align with the Macolin Convention regardless of its adverse effects on the gambling licensing authority’s appeal to attract operators.
Malta Recently Shielded Domestic Companies from Overseas Lawsuits
One way into the Macolin Convention is via a new law called Bill 55. The country put this in place because foreign entities filed lawsuits against Maltese companies in jurisdictions favouring the plaintiff. Naturally, business law and civil court cases occur globally in all business sectors. However, Maltese companies often found themselves defending legal disputes outside of Malta.
Bill 55, also known as Article 56A, ensures that plaintiffs respect Malta’s long-standing laws surrounding its online gambling industry. There has been some debate about why the bill has come into action. However, in a recent statement by the MGA, the licensing authority said that its government does not refuse legal rulings under the European Union’s Regulation (EU) 1215/2012. However, the article states why some rules under the regulation are not enforceable in Malta.
In other words, if a ruling undermines the legality of the Maltese framework, and the company acted within the lawful framework of the Malta Gaming Authority (MGA). The government will not enforce legal decisions made outside of its jurisdiction.
This leaves two questions:
- How would Bill 55 (Article 56A) affect operators under the MGA framework if it joins the Macolin Convention?
- Will the MGA enforce rules from the Macolin Convention to prevent operators from offering online gambling in countries where it is illegal?
Hence, the MGA is seeking legal advice at this time. I am sure that once the authority understands the legalities of its situation, we will find out more. Keep an eye on the Casinoplusbonus homepage for more gambling news covering the MGA and Macolin Convention.
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