The ruling, delivered on 27 February, supported Malta-licensed operators that had 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 landscape is dominated by monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
The market, alongside Germany, has faced high-profile player loss claims, where players have attempted to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have found themselves in court, sometimes being returned losses from illegal operators, while others have had to pay back winnings to unlicensed operators. Many of the operators caught up in these cases are licensed in Malta.
## Malta Judgment
The Maltese ruling this week involved 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 had previously ruled that the betting party could recover their losses due to the illegality of the operator in the market. However, the case was taken to a local court by the Malta Gambling Authority (MGA).
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services (like online gambling) to be provided 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.
Malta’s court also argued that Austria’s federal law on games of chance and its online gaming monopoly contradicts the TFEU.
As a result, the Maltese court has refused to enforce the Austrian judgments, stating they are contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, emphasized 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 highlighted that the Austrian monopoly’s compliance with EU law has been questioned multiple times.
She noted that numerous rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model violates Article 56 of the Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, stating it reinforced the operator’s previously expressed stance on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, rendering player contracts invalid and prompting players to seek to recoup their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after its market withdrawal.
In another case last year, an Austrian customer had to return their winnings to an unnamed unlicensed operator in the market. The courts determined that both player and operator had violated Austrian gambling laws, rendering their contract invalid.
Essentially, that decision found that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
This type of player dispute involving Austria and Maltese-based operators might decrease in the coming years as Austria appears to be on the verge of ending the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and monopoly on online gambling. However, its license expires on 30 September 2027. Austrian authorities are expected to start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism for the potential shift away from the monopoly system.
In December, 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 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.