Sport manipulation treaty will harm gaming industry, Herrera warns

A Council of Europe treaty aimed at combatting the problem of match-fixing in sport could have harmful repercussions on Malta’s gaming industry, competiveness parliaaemntary secretary Jose Herrera said.

“Malta will take all necessary steps to safeguard its national interest in the remote gaming industry,” Herrera said during a meeting with EU Sport Commisioner Tibor Navracsics.

Navracsics and Internal Market Commissioner Elżbieta Bienkowska have been tasked with overseeing the ratification of the Council of Europe’s treaty on an EU level.

The treaty has already been signed by 17 states and ratified by Norway. However, Malta has refused to sign it due to a concern of its definition of “illegal sports betting” as betting whose type or operator is not allowed under the consumer laws of the country in which it offers a service.

Malta has argued that this new definition will force sports betting companies to be regulated by their countries in which they offer a service and not the country in which they are based.

“If the EU adopts this Convention, licensed gaming operators in Malta will be judged by the laws of the country where they offer a service,” Herrera said. “Therefore, it could be considered illegal for them to operate in other EU member states while using a Maltese license.”

The gaming industry contributes around 10% of Malta’s GDP and 25% more gaming licenses were issued in 2014 than in 2013.

Malta have asked the EU Court of Justice to investigate whether this treaty clause is compatible with the freedom of services and establishments that are protected in EU treaties.

“Malta will adopt a tough stance on this matter,” Herrera said. “As things stand, it appears as though the EU will require the approval of all its member states before it can ratify this treaty.”