The ruling, delivered on 27 February, supported Malta-licensed operators that 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 scene is largely controlled by the monopoly operator Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
Similar to Germany, the Austrian market has seen numerous player loss claims, where players have attempted to reclaim losses from offshore operators, which are deemed illegal in these markets.
Players gambling outside the monopoly have been able to retrieve losses from illegal operators, while others have been ordered to return winnings to unlicensed operators. Many operators involved in these cases hold licenses in Malta.
## Malta Judgment
This week’s Maltese ruling addresses a case involving a player who lost €38,325 ($39,845/£31,653) in 2020 through the Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously decided that the player could recover their losses due to the operator’s illegality in the market, but the Malta Gambling Authority (MGA) brought the case to a local court.
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services, such as online gambling, to be provided across EU states.
This serves as a “primary source of community law,” which is considered a “fundamental rule of the legal order” for both the EU and Malta.
Malta’s court further contended that Austria’s federal law on games of chance and its online gaming monopoly conflicts with the TFEU.
Consequently, the Maltese court has declined to enforce the Austrian judgments, citing that they contradict Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, stated that 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 highlighted that Austria’s monopoly compliance with EU law has been questioned multiple times.
She noted that several rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, stating it reinforced the operator’s previously expressed stance on the matter.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court decided that foreign igaming brands were illegally operating in the country, player contracts were ruled 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 exiting the market.
In another case last year, an Austrian customer was instructed to return their winnings to an unnamed unlicensed operator in the market. The courts found that both the player and operator had violated Austrian gambling laws, rendering their contract invalid.
Essentially, the ruling indicated that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
The frequency of player disputes involving Austria and Maltese-based operators could decline in the coming years as Austria may be nearing an end to its online casino monopoly.
Casinos Austria was granted a 15-year license along with an online gambling monopoly. However, its license is set to expire on 30 September 2027. Austrian authorities are expected to start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader voiced optimism about the possibility of Austrian online gambling shifting away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president and secretary general Maarten Haijer called for Austria to liberalize 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 that it will not enforce Austrian court judgments that favored players receiving refunds for gambling on sites that were not locally licensed.