**Malta Court Backs Operators in Austrian Gambling Dispute**
The ruling, delivered on 27 February, supported Malta-licensed operators conducting business in Austria’s market without holding a local license. The court determined that previous Austrian judgments conflicted with Maltese public policy.
Austria’s online gambling arena is largely controlled by the monopoly operator, Casinos Austria, whose Win2Day is currently the sole licensed online product available in the country.
Both Austria and Germany have dealt with numerous high-profile claims where players sought to reclaim losses incurred through offshore operators, deemed illegal in these markets.
Players who have gambled outside the monopoly have sometimes found their losses refunded by illegal operators, while others have had to return winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The Maltese ruling relates to a player who, in 2020, lost €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had earlier decided that the betting party could recover losses due to the operator’s illegality in their market. However, the Malta Gambling Authority (MGA) brought the case before a local court.
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for the provision of services (like online gambling) across EU states. This article is a “primary source of community law,” serving as a “fundamental rule of the legal order” for the EU and Malta.
Malta’s court further argued that Austria’s federal law on games of chance and its online gaming monopoly contravened the TFEU. Consequently, the Maltese court refused to enforce the Austrian judgments, stating they opposed Maltese public policy.
Acting on behalf of the MGA, Davinia Cutajar, legal partner at WH Partners, emphasized the ruling’s significance for the gambling industry, highlighting how it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar also pointed out that Austria’s monopoly compliance with EU law has been questionable on multiple occasions.
She noted that several rulings from the Court of Justice of the European Union (CJEU) supported the standpoint that Austria’s monopoly model breaches Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision in a statement, affirming it supported the operator’s previously expressed position on the issue.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands operated illegally in the country, invalidating player contracts and prompting players to seek recovery of their losses.
This decision affected Betclic Everest subsidiary Bet-at-home, which was instructed to pay €2.8m in player losses, almost three years following its market exit (anticipated in August 2024).
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed market operator. The courts judged that both the player and operator violated Austrian gambling laws, thereby invalidating their contract.
Essentially, the decision concluded that both parties knowingly acted illegally, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This type of player dispute involving Austria and Malta-based operators might diminish in the forthcoming years, as Austria appears poised to abolish the country’s online casino monopoly.
Casinos Austria holds a 15-year monopoly license on online gambling, 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 earlier this month about Austria potentially moving away from the monopoly system for the first time.
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 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 favoring players receiving refunds for gambling on sites not licensed locally.