Ambassador Chris Farrugia, Deputy Permanent Representative of Malta to the EU, interviewed by SiGMA TV, set out a clear policy lens on the gaming industry’s role in the Union’s digital economy, the balance between innovation and consumer protection, and where EU measures such as the AI Act and the Digital Services Act intersect with national competence in gaming regulation.
Policy context
Farrugia framed gaming as a vital pillar of the EU’s digital economy, citing high-value employment across IT, cybersecurity, data, and regulatory compliance, and a vast network of ancillary services, including payment providers, software developers, marketing, and consultancy firms. He noted that the Commission has tabled multiple simplification packages this year to cut red tape and improve competitiveness, while preserving the original objectives of existing legislation, a process he described as challenging yet essential after uneven post-pandemic recovery across global regions and fierce competition from other world economies. “The need to simplify, the need to cut red tape, the need to make it easier for our industries and our businesses to thrive” is the cross-cutting theme in recent competitiveness assessments, he said.
“We cannot always have a one size fits all when it comes to every specific sector.”
Innovation and safeguards
The Ambassador underscored the policy challenge of balancing innovation with safety and consumer protection without overregulation, pointing to the AI Act’s requirement for national sandboxes that let innovators test AI and blockchain solutions against compliance in a controlled regulatory environment before market entry. “One of the toughest challenges is how to balance innovation, taking into account the need to preserve safety and consumer protection, and not overregulate,” he observed, adding that Malta operates such a technical sandbox to foster responsible product development without stifling enterprise. He distinguished reducing burdens and deregulation, arguing for proportionate simplification that maintains legal certainty while avoiding unnecessary compliance weight.
Harmonisation in focus
On the central question, Farrugia was clear that broadly speaking not every sector warrants harmonisation, and that so far, although gaming remains unregulated through a unified framework at the EU level, horizontal laws such as the Digital Services Act do apply to online services across sectors, including gaming, for example, on the takedown of illegal content on online platforms. “We cannot always have a one size fits all when it comes to every specific sector,” he noted, suggesting scope for targeted harmonisation and mutual recognition in areas like consumer protection, depending on legislative nature and depth, rather than comprehensive sector regulation. He emphasised the importance of dialogue and regular discussions within the institutions on files that touch gaming due to its cross border nature, and the rules that govern the single market including the freedom to offer services without hindrance, even if there is no specific EU framework to regulate the sector per se at present.
“In terms of expertise we have a lot to contribute.”
Malta’s contribution
Malta’s standing is both economic and regulatory. Farrugia stated gaming accounts for about 7 percent of Malta’s gross value added, reinforcing its strategic importance nationally, with expertise built since 2004 when Malta was the first Member State to establish a comprehensive regulatory framework for online gaming to enable growth with the relevant safeguards in place. “In terms of expertise we have a lot to contribute,” he said, citing active participation in Council negotiations, exchanges with Parliament, and contributions to AI expert groups and inter regulator information sharing to help the sector grow in a sustainable, consumer protecting environment. His career path from EU transport and digital policy to Deputy Permanent Representative positions him at the nexus of files that shape the digital single market conditions under which gaming companies operate.
Next steps
The EU should refine rules to promote competitiveness and innovation while maintaining high consumer protection and AML standards, using horizontal instruments already at its disposal and harnessing new technologies rather than imposing an EU wide sector regime for gaming at this time. Readers can explore more B2G interviews and prepare for SiGMA Central Europe in Rome on 3 to 6 November 2025 for continued high level discussion on regulation and growth across the sector.
