Date: 21.10.2024

by Sebastian Warowny

Spain Ratifies Macolin Convention

Spain has officially ratified the Council of Europe Convention on the Manipulation of Sports Competitions, commonly known as the Macolin Convention. The ratification positions Spain as the 12th country to fully endorse the treaty. The convention is set to come into effect on 1 February 2025, aiming to strengthen international efforts against match-fixing and corruption in sports.

Spain Commits to Combating Sports Manipulation

The ratification, completed by Spain’s ambassador to the Council of Europe on 17 October, positions Spain as the 12th country to fully endorse the treaty.

Spain’s Directorate General of Gambling Regulation (DGOJ) described the ratification as ‘a fundamental step for Spain in the fight against sports manipulation and the protection of the integrity of sport’.

The convention seeks to promote cooperation between governments, sports organizations, and betting operators to prevent and detect manipulation in sports competitions.

While the Macolin Convention has garnered support from numerous countries, it has also faced criticism regarding its definition of illegal gambling. Critics argue that the treaty’s terminology could inadvertently prohibit Malta-licensed operators from offering gaming services to other European nations.

The concern stems from the fact that the convention could classify cross-border online gambling without local licences as illegal, potentially disrupting Maltese online gambling companies.

Malta’s Hesitation

Malta remains one of the eight Council of Europe members that have not signed the convention. Observers suggest that Malta’s hesitation is linked to the potential negative impact on its substantial online gambling industry.

In 2021, the Financial Action Task Force recommended that Malta consider signing the convention as a demonstration of good faith when it placed the country on its “grey list” of jurisdictions under increased scrutiny.

Reports from August 2023 indicate that Malta is contemplating joining the treaty after the Malta Gaming Authority sought legal advice on how the move might affect its gambling sector.

Legal Challenges in Cross-Border Gambling

The issue of whether operators licensed in one European jurisdiction can offer online gambling services in another without a local license has resurfaced. Courts in the Netherlands, Germany, and Austria have recently ruled against operators for historical activities in grey markets, ordering them to reimburse players’ losses.

While some companies have complied with these rulings, others maintain that their operations are protected under the European Union’s principle of free movement of services.

In response to these challenges, Malta’s parliament passed an amendment to its Gambling Act, known as Bill 55, last year. This legislation aims to protect operators licensed by the Malta Gaming Authority from liability arising from their gaming activities abroad.

However, the European Commission announced in July that it intends to examine the compatibility of this law with European regulations. The Commission has requested additional information from Maltese authorities to assess whether the amendment aligns with EU law.