Malta’s Prime Minister Robert Abela recently announced plans to re-establish the Commercial Court as an independent entity, in a bid to improve the efficiency of commercial dispute resolution. Speaking in Valletta last week, Abela emphasised the need for this reform as part of the government’s broader efforts to improve the judicial system, particularly in the wake of Malta’s economic growth and increasing complexity of commercial cases.
Commercial court is step in the right direction
This announcement holds considerable relevance for the iGaming sector, one of Malta’s most prominent and fast-growing industries. Speaking to SiGMA News, Glenn Debattista, Chief Operating Officer (COO) at BetStarters commented that “in theory, the re-establishment of Malta’s Commercial Court is a promising step for the iGaming industry, ensuring faster resolution of commercial disputes and boosting confidence in a rapidly growing sector.”
For gaming companies licensed by the Malta Gaming Authority (MGA), the re-establishment of the Commercial Court would bring about a wave of changes that would streamline commercial legal processes and provide more specialised attention to gaming-related commercial matters.
Currently, the Civil Court, with its broad competency, handles commercial law matters in Malta. Commercial cases, including those related to gaming companies and the Companies Act, fall under the commercial remit of the Civil Court, which often struggles to address them with the speed and precision required for this booming sector.
As the iGaming industry expands, companies face increasingly complex commercial disputes, ranging from issues of corporate governance and mergers to contractual disputes and compliance with local and international regulations. The reintroduction of a dedicated Commercial Court, separate from the Civil Court, is likely to alleviate the burden on the existing system and allow for greater specialisation in commercial law cases.
Dr. Terence Cassar, a partner at GTG Advocates, shared his insights on the impact of this judicial reform with SiGMA News. “This is necessary due to Malta’s recent economic growth,” Dr. Cassar noted. “The announcement of the re-establishment of the Commercial Court as an independent entity will be welcomed by the Maltese gaming industry, and especially welcome will be the Prime Minister’s reported comments on progress towards specialisation of the judiciary as next steps, together with the reported ambitions towards more judicial efficiency.”
Dr. Cassar further explained that the re-establishment of the Commercial Court could result in faster resolutions to disputes, something highly beneficial for gaming companies operating in a highly competitive and time-sensitive industry.
Possibility of court dedicated to industry disputes
While the Administrative Review Tribunal will likely continue to handle appeals of decisions made by the Malta Gaming Authority (MGA), Dr. Cassar acknowledged the potential for a future court dedicated exclusively to gaming-related disputes. “There may be need for a court to deal with gaming-related matters exclusively, especially in view of the very specialist and technical nature of gaming law,” he said. However, no official announcement has yet been made on this front.
For gaming operators currently involved in high-profile civil cases, such as the enforcement of player judgments in the widely publicised Austrian and German player cases, Dr. Cassar noted that the re-establishment of the Commercial Court would not affect the court’s jurisdiction over these matters. These cases will continue to be heard by the applicable competent court.
Anticipation for SiGMA Malta
The gaming industry in Malta has long been recognised for its innovation and rapid growth, and this judicial reform could further enhance the island’s reputation as a leading iGaming hub. As Malta gears up for the SiGMA Europe Summit in November, where key stakeholders from the global gaming industry will converge to discuss the latest developments, the announcement of the Commercial Court reform adds yet another layer of excitement to the discussions. The SiGMA Europe Summit will serve as a vital platform for industry leaders to explore the implications of this reform and other critical regulatory changes that will shape the future of gaming in Malta.
