Malta confronts the proposal of the Council of Europe to identify illegal sports betting by the place of residence where the consumer is living. In case of approval of corresponding Convention, the gambling online sector that is very import for economy will bear great losses (this sector has 11% of country’s GDP).
Malta authorities are worried due to definition of “illegal sports betting” that is promoted by the Council of Europe in Convention on Manipulation of Sports Competitions, as Maltese unit of the newspaper The Independent writes.
The Convention specifies that illegal sports betting is the betting which types or the operators that accept the bet are not authorized by the legislation of the country where the consumer is living.
“This definition will put beyond the law all operators that propose their service with the license of Malta Gaming Authority at the European market”, - as the chairman of gambling games regulator of Malta Gaming Authority (MGA) Joe Cuschieri has declared.
Thus, the Convention on Manipulation of Sports Competitions as it is will destroy the rapidly developing industry of Malta online games as the edition informs. It is related to the fact that the majority of registered in Malta online operators accept bets in different European countries.
The article of Convention concerning illegal sports betting is the only reason for Malta to deny the Convention despite the fact that according to the words of Cuschieri its approval will positively influence on the struggle with fixed matches.
“Malta has taken part in negotiations and made various proposals concerning the amendments to the Convention. Unfortunately, all were ignored”, - he said.
The convention was written by the Council of Europe. The European Union is trying to ratify the Convention but in order to do this, it is necessary to get the amity of each member of European Union.
It is necessary to mention that according to the article 56 of Treaty on the Functioning of the European Union (TFEU) it is prohibited to limit the free provision of services in the Union by the citizens of state members that had established their own business in the other state member than the state of residence of the consumer.