**The Ruling and Austrian Gambling Landscape**
The ruling, delivered on 27 February, supported Malta-licensed operators conducting 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 service is currently the only licensed online product available in the country.
The market, like Germany, has faced numerous high-profile player loss claims, with players attempting to reclaim losses incurred from offshore operators deemed illegal within these regions.
Players gambling outside this monopoly have found legal success in recouping losses from illegal operators in the market, while others have had to return winnings to unlicensed operators. Many of these operators hold licenses in Malta.
## Malta Judgement
This week’s Maltese ruling relates to a player who, in 2020, lost €38,325 ($39,845/$31,653) through Malta-licensed operator European Lotto and Betting Limited, also known 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 escalated to a local court by the Malta Gambling Authority (MGA).
Malta’s courts have contended that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services, including online gambling, to be offered across EU states. It is considered a “primary source of community law,” essentially forming a “fundamental rule of the legal order” for both the EU and Malta.
The Maltese court also argued that Austria’s federal law on games of chance and its online gaming monopoly are in contradiction with the TFEU.
Consequently, the Maltese court refused to enforce the Austrian judgments, citing their inconsistency with 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 further highlighted that Austria’s monopoly’s compliance with EU law has been challenged multiple times.
She pointed out that numerous rulings from the Court of Justice of the European Union (CJEU) support the view that Austria’s monopoly model violates Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, noting that it reinforced the operator’s previously stated position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign iGaming brands were operating illegally in the country, rendering player contracts invalid and prompting players to seek a recovery of their losses.
This decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8 million in player losses nearly three years after its market exit in August 2021.
In another case from last year, an Austrian customer was required to return winnings to an unnamed unlicensed operator in the market. The court determined that both the player and operator had violated Austrian gambling laws, resulting in their contract being deemed invalid.
Essentially, the court ruled that both parties knowingly engaged in illegal activities, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
These types of player disputes involving Austria and Maltese-based operators might diminish in the coming years as Austria is likely to end its online casino monopoly.
Casinos Austria was granted a 15-year license and monopoly on online gambling. However, this license is set to expire on 30 September 2027, and 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 about the potential shift away from the monopoly system in Austrian online gambling.
In December, Maarten Haijer, European Gambling and Betting Association (EGBA) president secretary general, called for Austria to open up online gambling.
“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 ruled it will not enforce Austrian court judgments that favored players being awarded refunds for gambling on sites that weren’t locally licensed.