### Malta Court Ruling Supports Local Licensed Operators in Austrian Market Dispute
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 scene is dominated by monopoly operator Casinos Austria, with its Win2Day being the only licensed online product in the country.
The market, similar to Germany, has encountered several high-profile claims where players have attempted to reclaim losses from offshore operators, deemed illegal in these jurisdictions.
Players engaging outside the monopoly have found themselves in legal battles. Some have received their losses back from illegal operators, while others have been made to return winnings to unlicensed operators. Often, the operators involved are licensed in Malta.
## Malta Judgment
The Maltese ruling relates to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had earlier ruled that the player could recover their losses due to the illegality of the operator in the market. However, the Malta Gambling Authority (MGA) brought the case to a local court.
Maltese 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 offered across EU states. It is considered a “primary source of community law,” a “fundamental rule of the legal order” for both the EU and Malta.
The court also contended that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
As a result, the Maltese court refused to enforce the Austrian judgments, stating that they were contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, stated that 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 Austrian monopoly’s compliance with EU law has been questioned repeatedly.
Numerous rulings from the Court of Justice of the European Union (CJEU) have supported the stance that Austria’s monopoly model violates Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed this landmark decision in Malta, reinforcing the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, deeming player contracts invalid, and players sought to recoup their losses.
This ruling 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. The court found that both the player and operator had violated Austrian gambling laws, rendering the contract between them invalid.
The decision essentially ruled that both parties knowingly operated illegally, leading to the player being ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
Disputes involving Austria and Maltese-based operators could decrease in future years as Austria is expected to end its online casino monopoly.
Casinos Austria holds a 15-year license and a monopoly on online gambling, but this license will expire on 30 September 2027. Austrian authorities are expected to begin the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP, Simon Priglinger-Simader, expressed optimism regarding a shift from the monopoly system.
In December, European Gambling and Betting Association (EGBA) Secretary General Maarten Haijer advocated 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 stated it will not enforce Austrian court judgments that awarded players refunds for gambling on sites lacking local licenses.