EU Allows Courts to Consider Malta’s Gaming Protection Law When Freezing Assets

The European Court of Justice (ECJ) has declared that courts can take Malta’s gambling protection law and similar laws into consideration when deciding whether to urgently freeze assets. However, the court did not go as far as to declare the controversial law illegal.

The Ruling Is Tied to a Gaming Case

The decision was made by the ECJ’s Fourth Chamber and was sparked by a dispute between an Austrian player and a Malta-registered operator. The player, referred to as TQ, lost a five-figure sum to Mr Green’s gambling platform several years ago and later sought to recover his losses. TQ’s complaint insisted that since Mr Green did not hold an Austrian license at the time, the bets were void.

While Austrian courts sided with TQ, the money remained unpaid, prompting the plaintiff to seek a European Account Preservation Order to freeze Mr Green’s accounts across EU member states. For context, Mr Green has accounts in Ireland, Luxembourg, Malta, and Sweden.

As a result, the ECJ had to decide what national courts can take into account when determining whether there was sufficient ground or urgency to issue such an order.

The ECJ Said That Laws Blocking Freezing Claims Are a Factor to Consider

After examining the matter, the ECJ stated that a debtor’s past conduct and the existence of a law that could block an asset freezing claim were both things that courts should consider. For reference, Malta boasts a law that protects local operators from liability in foreign markets.

Because of that, the plaintiff had previously suggested that Mr Green might move assets to Malta to protect them from being frozen.

This was a significant development, especially for the case in question, since Mr Green’s ability to move its assets to a market where they would be protected could now be interpreted as grounds for asset freezing.

However, the legal battle between TQ and Mr Green is not over yet. With the new ECJ decision in mind, it would be up to the Austrian courts to determine whether to pursue further action.