Malta Clarifies on Gambling Debts

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Malta is one of the leading online gambling jurisdictions with several renowned gambling operators having been issued licenses by its Lotteries and Gambling Authority (LGA). Of late it has had to weather some stiff storm at online casino forums, but has ultimately answered its detractors, at least partially.

The genesis of the problem is a complaint from a player wagering at Casino Club, licensed by the LGA. The player claimed that the online casino had deprived him of a €167,500 progressive jackpot that was won fairly without any violation of the terms and conditions. Aggrieved by the refusal of Casino Club to pay the sum involved, the player went to the LGA, the licensing authority. The LGA considered the claim and ruled in favour of Casino Club. The problem was that the LGA has not made public the reasons for its decision. Various media agencies like Casinomeister pressed the LGA for a response but none was forthcoming.

This led to players at casino forums and other agencies to make their own enquiries and come to their own conclusions. Postings at forums stated that there were provisions in Malta law that made gambling debts unenforceable. The media began to quiz the LGA if this was correct but for a while there was total silence from the Maltese regulator. Finally the LGA published a clarification at its web site.
At the outset the LGA claimed that the reported fears of the players were only a media creation based on unnecessary speculation. The clarification went on to say that "This Public Notice is being issued in order to clarify a legal issue which has been circulating various blogs and news headlines in relation to Player Winnings and Gaming Debts." The notice pointed out that the provisions being referred to by the media have been taken from Chapter 16 of the Laws of Malta. Chapter 16 does not apply to licensed online casinos. Online casinos are authorized and licensed under the Gaming Act, which is in Chapter 400 of the Laws of Malta, and under the Lotteries and Other Games Act, which is in Chapter 438. The LGA said that the gambling debts referred to in the media reports and which are covered under Chapter 16 are those debts that arise out of unauthorized or unlicensed gambling, which is in any event an illegal activity. Therefore it follows that if the gambling operator has been licensed by the LGA then the debts that would arise either to the player or the operator would be enforceable under Malta law.

However this clarification does not help the player at Casino Club very much, except that he can take legal action against the online casino, and this is what he is contemplating.

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