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Malta MEP warns online gambling ad ban could boost illegal market

Malta MEP Peter Agius has issued a warning that a proposed ban on online gambling advertising could have the unintended consequence of driving players toward unregulated and illegal operators. Speaking in the context of ongoing discussions within the European Union about stricter advertising rules for gambling, Agius argued that such a ban might undermine consumer protection rather than enhance it. The MEP’s comments come as EU institutions consider measures to limit the visibility of gambling ads across member states, a move that has drawn mixed reactions from industry stakeholders and policymakers alike.

Agius, who represents Malta in the European Parliament, emphasized that a blanket ban on advertising could push consumers away from licensed and regulated operators, which are subject to strict oversight and responsible gambling requirements. Instead, players might turn to black-market sites that operate outside EU jurisdiction and offer no safeguards. He noted that Malta, as a major hub for licensed iGaming companies, has a vested interest in ensuring that regulatory frameworks are effective without creating perverse incentives. The MEP’s remarks highlight a recurring tension in gambling regulation: the balance between restricting promotion to reduce harm and maintaining a channeled market where players can access safer options.

The debate over gambling advertising has intensified across Europe in recent years, with several countries implementing partial or total bans. Italy, for example, enacted a comprehensive ban in 2019, while the Netherlands and Belgium have also tightened restrictions. Proponents argue that such measures reduce exposure to gambling and help prevent addiction, particularly among vulnerable groups. However, critics point to evidence from Italy, where the ban led to a significant drop in advertising but also coincided with a rise in unlicensed gambling activity. Agius’s warning echoes these concerns, suggesting that without a coordinated approach that includes enforcement against illegal operators, bans may be counterproductive.

Malta’s position as a leading licensing jurisdiction for online gambling adds weight to Agius’s intervention. The Malta Gaming Authority (MGA) oversees hundreds of operators serving markets across Europe and beyond. A shift in EU policy could directly impact the island’s economy and its reputation as a well-regulated hub. Agius has called for a more nuanced approach that targets harmful advertising practices rather than imposing a blanket prohibition. He suggested that measures such as strict content rules, time restrictions, and mandatory harm warnings could achieve public health goals without driving business underground.

The European Commission has been exploring options to update the Audiovisual Media Services Directive (AVMSD) and other relevant legislation to address gambling advertising. While no formal proposal has been tabled, the issue remains on the agenda amid growing political pressure from anti-gambling campaigners and some member states. The industry, represented by bodies such as the European Gaming and Betting Association (EGBA), has argued that advertising bans are a blunt instrument that fails to address the root causes of problem gambling. Instead, they advocate for evidence-based regulation that includes robust age verification, responsible marketing codes, and investment in treatment services.

Agius’s warning also touches on the broader challenge of illegal gambling, which the European Commission has estimated to account for a significant share of the market in some countries. Unlicensed operators often offer higher bonuses and fewer restrictions, making them attractive to consumers who feel constrained by regulated offerings. If advertising bans reduce the visibility of legal operators, players may find it harder to distinguish between safe and unsafe options. This dynamic is particularly concerning in cross-border contexts, where players can easily access offshore sites via the internet.

The MEP’s intervention is likely to influence the debate within the European Parliament, where he serves on the Committee on the Internal Market and Consumer Protection (IMCO). His stance aligns with that of several industry representatives who have called for a more targeted regulatory approach. However, it also faces opposition from public health advocates who argue that any form of advertising normalizes gambling and increases overall consumption. The outcome of this policy discussion will have significant implications for operators, affiliates, and consumers across the EU.

As the EU continues to deliberate, Malta’s role as a key stakeholder ensures that its voice will be heard. Agius’s warning serves as a reminder that well-intentioned regulations can have unintended consequences, and that effective consumer protection requires a holistic strategy that includes enforcement against illegal operators, education, and support services. The coming months will be critical as policymakers weigh the evidence and seek to strike the right balance between public health and market integrity.

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