## Court Ruling on Malta-Licensed Operators
The ruling delivered on 27 February supported Malta-licensed operators that had 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 environment is controlled by monopoly operator Casinos Austria. Its Win2Day platform is currently the only licensed online offering in the country.
The market, along with Germany, has faced several high-profile claims involving players attempting to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have experienced court-ordered refunds from illegal operators, while others have had to repay winnings to unlicensed operators. In many cases, the operators involved 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) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously allowed the betting party to 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. It acts as a “primary source of community law” and 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 contradict the TFEU. Therefore, the Maltese court has refused to enforce the Austrian judgments, declaring them contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated the decision has 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 several times. She mentioned that numerous decisions from the Court of Justice of the European Union (CJEU) supported the stance that Austria’s monopoly model breaches Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, stating 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 illegally operating in the country, player contracts were deemed invalid, leading players to seek to recoup their losses.
This decision impacted 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 that both player and operator had violated Austrian gambling laws, rendering the contract between them invalid. Essentially, that ruling declared both parties knowingly operated illegally and required the player to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
These player disputes involving Austria and Maltese-based operators may decrease in the coming years as Austria is likely to end the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling. However, its 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 move away from the monopoly system.
Last 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 it will not enforce Austrian court judgments awarding refunds to players for gambling on sites not locally licensed.