The ruling, delivered on 27 February, supported Malta-licensed operators that had engaged in business within Austria’s market without holding a local license. The court determined that prior Austrian judgments were in conflict with Maltese public policy.
Austria’s online gambling sector is primarily controlled by the monopoly operator Casinos Austria. Its Win2Day product is currently the sole licensed online offering in the nation.
The market, alongside Germany, has been subjected to several high-profile player loss claims where players sought to reclaim losses from offshore operators, deemed illegal in these markets.
Players gambling outside this monopoly have experienced legal cases where they either reclaimed losses from illegal operators or returned winnings to unlicensed operators. Often, the involved operators are licensed in Malta.
## Malta Judgement
This recent ruling in Malta pertains to a player who, in 2020, lost €38,325 via Malta-licensed operator European Lotto and Betting Limited, trading as Lottoland.
An Austrian court had earlier stated the betting party could recover their losses due to the operator’s illegality in the market, but the Malta Gambling Authority (MGA) contested this ruling in a local court.
Malta’s courts referenced EU Article 56 in the Treaty on the Functioning of the European Union (TFEU), which allows for services (such as online gambling) to be provided across EU states.
It serves as 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 conflicted with the TFEU.
Therefore, the Maltese court declined to enforce the Austrian judgments, asserting that they contradicted Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, highlighted that the decision held substantial 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 further noted that the compliance of the Austrian monopoly with EU law had been questioned multiple times.
She remarked that multiple rulings from the Court of Justice of the European Union (CJEU) supported the stance that Austria’s monopoly model violated 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 ruling in Malta, stating that it reinforced the operator’s previously expressed stance on the matter.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court deemed that foreign igaming brands were operating illegally in the country, player contracts were declared invalid, and players pursued to recover their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years following its market exit.
In another case last year, an Austrian customer was directed to return their winnings to an unnamed unlicensed operator in the market. The courts determined that both the player and operator breached Austrian gambling laws, rendering their contract invalid.
Essentially, that decision established that both parties knowingly operated illegally, leading to the player being ordered to cover the operator’s legal fees.
## Austrian Online Gambling Facing Liberalisation
Player disputes involving Austria and Maltese-based operators might decrease in the coming years as Austria is anticipated to conclude the country’s online casino monopoly.
Casinos Austria was provided a 15-year license conferring a monopoly on online gambling. However, this 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 expressed optimism that Austrian online gambling could transition away from the monopoly system for the first time.
Last December, European Gambling and Betting Association (EGBA) 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 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 in favor of players being awarded refunds for gambling on sites not locally licensed.