GiG Resolves Austrian Player Claims Following Maltese Court Decision
GiG Moves to Dissolve Subsidiary Amid Austrian Player Claims
Gaming Innovation Group (GiG) has recently secured a critical legal victory in Malta, allowing it to dissolve its inactive white-label subsidiary, MT SecureTrade Limited. This development follows player reimbursement claims raised by Austrian players, which posed significant legal risks across Europe. The Maltese court ruling shields GiG from potential legal challenges stemming from its former white-label operations.
Background on MT SecureTrade and White-Label Operations
On November 17, the Maltese court authorized the winding-up of MT SecureTrade, the company that formerly managed several white-label casino brands such as Metal Casino, Dunder, and ShadowBet under the GiG Maltese license. Although GiG ceased all white-label business activities in 2020 and surrendered MT SecureTrade’s Malta Gaming Authority (MGA) license in 2022, the dormant entity has remained embroiled in ongoing lawsuits.
Austrian Player Lawsuits and Legal Challenges
Former Austrian players have sought to recover losses sustained while gambling with operators associated with MT SecureTrade, claiming these activities were conducted illegally under local regulations at the time. Similar legal claims are emerging from Austria, Germany, and the Netherlands, where courts and legal experts argue that unlicensed operators should provide full reimbursement to affected players.
Legal Strategy and Implications
GiG’s decision to dissolve MT SecureTrade is a strategic move to mitigate future litigation risks. While acknowledging the ongoing claims, the company argued that maintaining the subsidiary provided no commercial benefit and only increased potential legal exposure tied to now-defunct brands. This recent court ruling helps GiG avoid lengthy and costly legal proceedings related to these claims.
Broader Legal Context and Impact on European Gambling Regulations
This case unfolds amid broader tensions around Malta’s Bill 55, legislation aimed at protecting MGA-licensed gambling operators from liability for activities conducted in foreign countries, provided these activities comply with Maltese law. However, this law has faced opposition, especially from countries like Germany, which assert that their national regulations against unlicensed gambling take precedence.
The Role of the European Court of Justice
The dispute has escalated to the European Court of Justice (ECJ), where a non-binding opinion by Advocate General Nicholas Emiliou supported the legitimacy of players’ claims to recover losses from illegal gambling activities. This opinion aligned with the position of countries such as Germany and could heavily influence the court’s final decision.
Looking Ahead: Uncertain Future for Gambling Operators
Though the dissolution of MT SecureTrade reduces GiG’s immediate risk, the overarching legal battle concerning player claims and MGA operator liabilities remains unresolved. The ECJ’s ruling, expected no earlier than 2026, will be pivotal in determining the fate of Bill 55 and could potentially lead to claims amounting to billions of Euros. The gambling industry is closely monitoring the case, preparing for significant regulatory and financial consequences.
