Lotto receiver in legal challenge against Maltco Lotteries, as strike threat looms

A lotto receiver has filed for arbitration against Maltco lotteries over a hefty increase in the financial guarantee imposed by the company, while also requesting the court to issue a warrant of prohibitory injunction against the lotto company.

Paul Mamo of Birzebbugia filed the cases this morning, as Maltco has been given notice of industrial action by all lotto receivers who have threatened to keep all lotto offices closed indefinitely in solidarity with him, unless the company reactivates his terminal.  

178 receivers are part of a collective guarantee while the rest, about 31, have guarantees that they discuss individually with Maltco.

The receivers all wanted to form part of this collective guarantee but the company is refusing to allow this. Those who hold individual agreements were being asked for steep increases.

Mamo has been asked by Maltco to increase his €10,000 financial guarantee to €24,000. He claimed that he cannot afford a 140 per cent increase in the financial guarantee demanded by the company.

Maltco had given the receiver a week to pay up but he could not afford it and the company suspended his online service.

A GRTU spokesman told MaltaToday that lotto receivers have given Mlatco Lotteries until 5pm today to reactivate Mamo's terminal. "Should this terminal not be reactivated, we have given notice that all lotto booths will be shut indefinitely as of tomorrow."

Mamo has requested the courts to order Malto to reactive his service and to be considerate in their financial requests. He added that Maltco were pushing him out of business.

Lawyers Franco Debono, Marion Camilleri and Charmaine Cherrett are appearing for Mamo.