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 scene is dominated by the monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
The market, alongside Germany, has faced several high-profile player loss claims where players attempted to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have either had their losses returned from illegal operators in the market or have had to pay back winnings to unlicensed operators. Many operators involved in these cases are licensed in Malta.
## Malta Judgement
The Maltese ruling this week 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, trading as Lottoland.
An Austrian court had previously ruled that the bettor could recover their losses due to the operator’s illegality in the market, but the case was brought 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, such as online gambling, to be offered across EU states. It acts 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 contended that Austria’s federal law on games of chance and its online gaming monopoly contravene the TFEU. Consequently, the Maltese court refused to enforce the Austrian judgments, stating they oppose Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, stated that the decision significantly impacts 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 Austrian monopoly’s compliance with EU law has been questioned several times. She mentioned that numerous rulings from the Court of Justice of the European Union (CJEU) supported the stance 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, noting it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, player contracts were deemed invalid, and players sought to recover 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 August 2024).
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed operator in the market. The courts found both player and operator had violated Austrian gambling laws and ruled their contract invalid. As a result, the player had to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
Player disputes involving Austria and Maltese-based operators could decrease in the future as Austria is likely nearing the end of the country’s online casino monopoly.
Casinos Austria holds a 15-year license and monopoly on online gambling. However, its license will expire on 30 September 2027, with Austrian authorities expected to start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader recently expressed optimism that Austrian online gambling could move away from the monopoly system.
In December, Maarten Haijer, president and secretary general of the European Gambling and Betting Association (EGBA), 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 favoring players being awarded refunds for gambling on sites not locally licensed.