The ruling, delivered on 27 February, supported Malta-licensed operators that had conducted business in Austria’s market without holding a local license. The court determined that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling landscape is dominated by the monopoly operator Casinos Austria, with its Win2Day offering currently being the only licensed online product in the country.
The market, along with Germany, has faced several high-profile claims from players attempting to recover losses from offshore operators deemed illegal within these markets.
Players who gamble outside this monopoly have occasionally been in court, successfully recovering losses from illegal operators, whereas others have been required to return winnings to unlicensed operators. Many of these operators involved in legal actions are licensed in Malta.
## Malta Judgement
The recent Maltese ruling concerns a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating under the name Lottoland.
An Austrian court had previously ruled that the player could reclaim their losses due to the operator’s illegal status in the market, but the case was brought to a local court by the Malta Gaming Authority (MGA).
Malta’s courts have contended that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services (such as online gambling) to be offered across EU states.
It serves as a “primary source of community law,” which is a “fundamental rule of the legal order” for both the EU and Malta.
The Maltese court also argued that Austria’s federal law on games of chance and its online gaming monopoly conflicts with the TFEU.
Therefore, the Maltese court has refused to enforce the Austrian judgments, asserting that they are contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, noted that the decision has significant implications for the gambling industry as it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar also highlighted that Austria’s monopoly compliance with EU law has been questioned on multiple occasions.
She noted that numerous rulings from the Court of Justice of the European Union (CJEU) support the position that Austria’s monopoly model violates Article 56 of the Treaty on the Functioning of the European Union (TFEU).
Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, stating it reinforced the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court’s ruling determined that foreign igaming brands were operating unlawfully in the country, leading to player contracts being deemed invalid and prompting players to seek recovery of their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after its market withdrawal (in August 2024).
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed operator in the market, with the courts finding that both player and operator had breached Austrian gambling laws and that the contract between them was invalid.
The ruling effectively determined that both parties knowingly operated illegally, with the player being ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This type of player dispute involving Austria and Maltese-based operators might diminish in the coming years as Austria seems poised to end its online casino monopoly.
Casinos Austria holds a 15-year license and a monopoly on online gambling, but its license is set to expire on 30 September 2027. Austrian authorities are expected to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader mentioned earlier this month that he was “optimistic for the first time ever” about Austrian online gambling shifting away from the monopoly system.
This past December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer urged Austria to open up online gambling.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer said. “It brings gambling activity into the regulated market, protects consumers and generates significant tax revenue.”
The Maltese Civil Court has ruled that it will not enforce Austrian court judgments that favored players being awarded refunds for gambling on sites that were not locally licensed.