The ruling delivered on 27 February supported Malta-licensed operators that conducted business in Austria’s market without a local license. The court determined that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling market is dominated by the monopoly operator Casinos Austria. Its Win2Day platform is currently the only licensed online product in the country.
Alongside Germany, Austria has experienced numerous high-profile player loss claims, where players have tried to reclaim losses from offshore operators deemed illegal in these markets.
Players betting outside this monopoly have been refunded losses from illegal operators in court, while others have been compelled to repay winnings to unlicensed operators. In many cases, the operators involved are licensed in Malta.
## Malta Judgment
This week’s Maltese ruling pertains to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court previously ruled that the player could recover their losses due to the operator’s illegality in the market, but the Malta Gambling Authority (MGA) brought the case to a local court.
Malta’s courts have asserted that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows services, such as online gambling, to be provided across EU states.
This acts as a “primary source of community law” and is a “fundamental rule of the legal order” for both the EU and Malta.
The court also argued that Austria’s federal law on games of chance and its online gaming monopoly contravenes the TFEU.
Consequently, the Maltese court rejected enforcing the Austrian judgments, stating they violated Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, stated 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 noted that the compliance of Austria’s monopoly with EU law has been questioned on numerous occasions.
She mentioned that several rulings from the Court of Justice of the European Union (CJEU) supported the notion 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, noting it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court determined that foreign igaming brands were illegally operating in the country, rendering player contracts invalid and prompting players to reclaim losses.
This decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to refund €2.8m in player losses nearly three years after its market withdrawal.
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed operator. The courts concluded that both the player and operator violated Austrian gambling laws, invalidating their contract.
Essentially, the decision found that both parties knowingly operated illegally, and the player had to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
Disputes involving players in Austria and Maltese-based operators may decrease in the coming years as Austria is likely to end its online casino monopoly.
Casinos Austria holds a 15-year license and a monopoly on online gambling, which expires on 30 September 2027. Austrian authorities are anticipated to start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month that Austria could soon move away from the monopoly system in online gambling.
Last December, European Gambling and Betting Association (EGBA) 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 said. “It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue.”
The Maltese Civil Court has decided not to enforce Austrian court judgments that favored players receiving refunds for gambling on sites without local licenses.