The ruling delivered on 27 February supported Malta-licensed operators conducting business in Austria’s market without a local license. The court decided that previous Austrian judgments went against Maltese public policy.
Austria’s online gambling scene is dominated by the monopoly operator Casinos Austria. Its Win2Day service is currently the only licensed online product available in the country.
This market, along with Germany, has experienced numerous high-profile player loss claims where players have attempted to reclaim losses from offshore operators, which are considered illegal in these markets.
Players who gamble outside this monopoly often find themselves getting money back from illegal operators in the market, while others have had to return winnings to unlicensed operators. Many of the operators involved in these cases hold licenses in Malta.
## Malta Judgment
The Maltese ruling relates to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) with Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously allowed the player to recover their losses due to the operator’s illegality in the market. However, the Malta Gambling Authority (MGA) brought the case to a local court in Malta.
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) permits services like online gambling across EU states.
This article is considered a “primary source of community law” and a “fundamental rule of the legal order” for both the EU and Malta.
Malta’s court also contended that Austria’s federal law on games of chance and its online gaming monopoly are contrary to the TFEU.
Therefore, the Maltese court refused to enforce the Austrian judgments, stating that they conflict with Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, remarked 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 noted that the compliance of the Austrian monopoly with EU law has been questioned multiple times.
She highlighted several rulings from the Court of Justice of the European Union (CJEU) supporting the view that Austria’s monopoly model breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU).
Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, stating it reinforced the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were illegally operating within the country, player contracts were deemed invalid, and players sought to reclaim their losses.
This decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after its market exit in August 2024.
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator in the market. The courts found that both the player and operator had breached Austrian gambling laws, rendering the contract between them invalid.
The decision effectively ruled that both parties knowingly engaged in illegal operations, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
The type of player disputes involving Austria and Maltese-based operators could decrease in the coming years, as Austria is likely nearing the end of its online casino monopoly.
Casinos Austria was given a 15-year license and a monopoly on online gambling, but this license expires on 30 September 2027. Austrian authorities are anticipated to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism that Austrian online gambling could transition away from the monopoly system.
European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer called for Austria to open up online gambling.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer stated. “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 in favor of players receiving refunds for gambling on sites not locally licensed.