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 primarily controlled by monopoly operator Casinos Austria. Its Win2Day offering is the only licensed online product in the country.
The market, alongside Germany, has seen several high-profile player loss claims where players have tried to reclaim losses from offshore operators deemed illegal within these regions.
Players gambling outside this monopoly have sometimes found themselves in court, receiving back losses from illegal operators in the market, while others have had to pay back winnings to unlicensed operators. Often, the operators involved in these cases are licensed in Malta.
## Malta Judgment
The Maltese ruling this week pertains to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) with Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that the player 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) provides for services (like online gambling) to be offered across EU states.
This acts as a “primary source of community law,” a “fundamental rule of the legal order” for both the EU and Malta.
Malta’s court further argued that Austria’s federal law on games of chance and its online gaming monopoly contradicts the TFEU.
As a result, the Maltese court has refused to enforce the Austrian judgments, claiming they are contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated that the decision holds significant 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 also noted that the Austrian monopoly’s compliance with EU law has been questioned on multiple occasions.
She highlighted numerous rulings from the Court of Justice of the European Union (CJEU) that supported the position that Austria’s monopoly model violates Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, saying it reinforced the operator’s previously stated position on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, player contracts were deemed invalid, and players sought to recover their losses.
That decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after its market withdrawal.
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator in the market. The courts concluded that both the player and operator violated Austrian gambling laws, rendering their contract invalid.
This decision essentially ruled that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators could decrease in the coming years as Austria moves toward ending the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, but 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 earlier this month that Austrian online gambling could transition 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 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 that favored players being awarded refunds for gambling on sites not locally licensed.