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 conflicted with Maltese public policy.
Austria’s online gambling landscape is dominated by monopoly operator Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
The market, similar to Germany, has faced numerous high-profile cases where players tried to reclaim losses from offshore operators deemed illegal in these regions.
Players gambling outside the monopoly have sometimes succeeded in court in getting their losses returned from illegal operators, while others have been required to pay back winnings to unlicensed operators. Many of these operators 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) with Malta-licensed operator European Lotto and Betting Limited, trading as Lottoland.
An Austrian court had previously ruled that the player could recover losses due to the operator’s illegal status 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) allows for services (like online gambling) to be provided across EU states.
It serves as a “primary source of community law,” 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 conflicts with the TFEU.
As a result, the Maltese court refused to enforce the Austrian judgments, stating that they contradicted Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated 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 also noted that the compliance of the Austrian monopoly with EU law has been questioned on several occasions.
She mentioned that numerous rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model violates 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, emphasizing that it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, deeming player contracts invalid, leading players to recover their losses.
This decision affected Betclic Everest subsidiary Bet-at-home, required to pay €2.8m in player losses nearly three years after exiting the market in August 2024.
In another case last year, an Austrian customer was ordered to return winnings to an unnamed unlicensed operator. The courts found that both the player and operator violated Austrian gambling laws, rendering their contract invalid.
This ruling established that both parties knowingly operated illegally, resulting in the player being ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators may decrease in the coming years, as Austria is likely nearing the end of its online casino monopoly.
Casinos Austria was granted a 15-year licence and a monopoly on online gambling, set to expire on 30 September 2027. Austrian authorities are expected to start the tendering process for new licences this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month about Austrian online gambling potentially moving away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president, secretary general Maarten Haijer, advocated for Austria to open up online gambling. He stated, “The evidence from across Europe is clear and compelling: multi-licensing works. It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue.”
The Maltese Civil Court has decided it will not enforce Austrian court judgments favoring players being awarded refunds for gambling on sites that were not locally licensed.