The ruling delivered on 27 February supported Malta-licensed operators that operated in Austria’s market without a local license. The court determined that previous Austrian judgments were inconsistent with Maltese public policy.
Austria’s online gambling landscape is predominantly controlled by the monopoly operator Casinos Austria, with its Win2Day platform being the only licensed online product in the country.
Similar to Germany, the market has encountered several prominent player loss claims, where players sought reimbursement from offshore operators deemed illegal within these jurisdictions.
Players engaging with entities outside the monopoly have experienced varying court outcomes, sometimes recovering losses from illegal operators, while others have had to return winnings to unlicensed operators. Many of these operators involved are licensed in Malta.
## Malta Judgment
This week’s Maltese ruling pertains to a player who gambled in 2020, losing €38,325 via Malta-licensed operator European Lotto and Betting Limited, known 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 Maltese court.
Malta’s courts contended that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services, like online gambling, to be provided throughout EU states.
This article serves as a “primary source of community law” and a “fundamental rule of the legal order” for both the EU and Malta.
Furthermore, Malta’s court argued that Austria’s federal gambling laws and its online gaming monopoly contradict the TFEU.
Consequently, the Maltese court refused to enforce the Austrian judgments, declaring them contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated that the decision significantly impacts the gambling industry by “reinforcing the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar also noted that Austria’s monopoly compliance with EU law has been questioned multiple times.
She highlighted that numerous rulings from the Court of Justice of the European Union (CJEU) support the view that Austria’s monopoly model contravenes Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, saying it reaffirmed the operator’s previously stated position on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign gaming brands were operating illegally in the country, player contracts were deemed invalid, and players sought to recover 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. The courts concluded that both the player and operator violated Austrian gambling laws, rendering their contract invalid.
Effectively, that verdict determined that both parties knowingly operated illegally, requiring the player to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
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 awarded a 15-year license and a monopoly on online gambling, which is set to expire on 30 September 2027. Austrian authorities are anticipated to begin the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism for the first time that Austrian online gambling could transition away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) president secretary-general Maarten Haijer advocated 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 not to enforce Austrian court judgments favoring players receiving refunds for gambling on sites without local licenses.