Legal professionals in the Netherlands are advocating for their nation’s government to reject a contentious Maltese regulation, commonly referred to as Act 55.

These legal representatives, who are actively engaged in legal proceedings against gaming enterprises, maintain that the legislation constitutes a “grave violation of European law.”

The formal communication, bearing the signatures of five legal practitioners, urges the Dutch government to unequivocally oppose Act 55.

Act 55, which became effective in June, grants immunity from legal responsibility to gaming operators for their activities authorized by the Malta Gaming Authority (MGA).

The letter was endorsed by Benzi Loonstein, Herman Loonstein, and Johan Oosterhagen from the Loonstein law firm, along with Martijn Bonefaas and Anton Heilig from the Van Diepen Van der Kroef law firm.

The legal professionals contend that the Dutch government should take decisive action against Act 55, as comparable legal challenges in Austria and Germany have resulted in legal precedents in higher courts, holding gaming companies accountable for all historical financial losses incurred by consumers.

These legal professionals are apprehensive that the Netherlands might follow a similar path to Austria and Germany, where gaming companies have been held liable for all historical financial losses incurred by consumers.

The correspondence indicates that the Netherlands should also “anticipate and desire” for this occurrence. It cites a decision by the Dutch National Council that declared grey market goods perpetually forbidden.

Although most enterprises have settled their debts following their legal defeat, some operators persist in defending themselves, notably several brands associated with 888 and Flutter.

Legal representatives contend that Maltese operators ought to be obligated to reimburse players for all their financial losses, given that they provided gambling services without a permit from the Dutch regulatory body, Kansspelautoriteit (KSA).

Legal professionals emphasized case law within Europe and the Netherlands, arguing that Act 55 contravenes Dutch legislation.

As Casino Nieuws observed, the letter asserts that gambling firms operate “illegally” due to their infringement of Article 1 of the Dutch Gambling Act (KOA).

“The breach of the duty of care also generates substantial economic, personal, and social issues for numerous citizens involved and their surroundings,” the letter states. “These instances are abundant but have been inadequately exposed thus far.”

“A perilous precedent”
The correspondence asserts that Act 55 violates the revised Brussels Regulation. This is EU law that governs legal judgments between member states.

However, the MGA defended the legislation last week based on this point, referencing a section in the law that permits exemptions if the legislation does not adhere to the principles of its legal framework.

This document also contends that Act 55 signifies an “intervention into the autonomous judicial and legislative branches” of the Netherlands and Malta.

The legislation has been condemned by European policymakers and oversight bodies since its enactment, with many asserting that it ultimately clashes with European regulations. Last month, the European Commission declared it would endeavor to examine Act 55, German anti-gambling politician MEP Sabine Verheyen stated in a written reply. Subsequently, Germany’s gambling regulator GGL declared in a written statement in August that Act 55 is not in alignment with EU law.

“Ultimately, individuals are attempting to render it impossible for Maltese judges to acknowledge and enforce decisions made by Dutch, German, and Austrian judges. Laws such as Act 55 have no precedent within the EU. Consequently, this legislation would establish a hazardous precedent.

“We urge the Dutch government to safeguard the interests of this group of Dutch citizens and to guarantee, through the European Commission, that Malta no longer disregards the rule of law as enshrined in the EU treaties.”

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