**Malta Backs Operators in Dispute Over Austrian Gambling Judgments**
The ruling, delivered on 27 February, supported Malta-licensed operators that had conducted business in Austria’s market without a local license. The court concluded that previous Austrian judgments contradicted Maltese public policy.
Austria’s online gambling scene is largely controlled by the monopoly operator Casinos Austria, with its Win2Day platform being the only licensed online product available in the country.
Both Austria and Germany have faced numerous player loss claims, where players have sought to recover losses from offshore operators deemed illegal within these jurisdictions.
Players engaging outside the monopoly have encountered situations where they were refunded losses from illegal operators, while others had to return winnings to unlicensed operators. Many of these operators involved are licensed in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who, in 2020, lost €38,325 through Malta-licensed operator European Lotto and Betting Limited, trading as Lottoland.
Previously, an Austrian court had decided that the player could reclaim their losses due to the operator’s illegal status in the market. However, the case was escalated to a local court by the Malta Gambling Authority (MGA).
Malta’s courts cited EU Article 56 from the Treaty on the Functioning of the European Union (TFEU), highlighting provisions that allow services, like online gambling, to be offered across EU states.
This article serves as a “primary source of community law,” forming a “fundamental rule of the legal order” for both the EU and Malta.
The court also contended that Austria’s federal law on games of chance and its online gaming monopoly conflicted with the TFEU.
As such, the Maltese court decided not to enforce the Austrian judgments, asserting that they opposed Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated that the decision has significant ramifications for 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 numerous occasions where the compliance of Austria’s monopoly with EU law has been questioned.
She highlighted various rulings from the Court of Justice of the European Union (CJEU) that supported the view that Austria’s monopoly model violates Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, expressed approval of the landmark decision in Malta, stating that it confirmed the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, rendering player contracts invalid as players sought to recover their losses.
This decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after exiting the market (expected in August 2024).
In a separate case last year, an Austrian customer was mandated to return winnings to an unnamed unlicensed operator. The courts determined that both the player and operator violated Austrian gambling laws, nullifying their contract.
Consequently, that ruling determined that both parties knowingly operated illegally, ultimately requiring the player to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators could diminish in the coming years, as Austria appears poised to end its online casino monopoly.
Casinos Austria received a 15-year license and monopoly over online gambling, which is set to expire on 30 September 2027. Austrian authorities are likely to initiate the tendering process for new licenses this year.
Simon Priglinger-Simader, VP of the Austrian Betting and Gaming Association, conveyed optimism for the potential departure from the monopoly system in Austrian online gambling.
This past December, European Gambling and Betting Association (EGBA) president Maarten Haijer advocated for Austria to open its online gambling market.
“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 decided not to enforce Austrian court judgments that favored players receiving refunds for gambling on unlicensed sites.