**Ruling Overview**
The decision, announced on 27 February, endorsed the operations of Malta-licensed operators conducting business in Austria’s market without needing a local license. The court found previous Austrian judgments contradictory to Maltese public policy.
### Austrian Gambling Market
In Austria, the online gambling domain is dominated by the monopoly operator Casinos Austria, with its Win2Day service as the only licensed online product in the country. The market, along with Germany, has seen several significant player loss claims, where players have tried to reclaim losses from offshore operators considered illegal within these markets.
Players operating outside this monopoly have ended up in court, either reclaiming their losses from illegal operators or being asked to repay winnings to unlicensed operators. Many of these operators hold licenses in Malta.
## Malta Judgment
The recent ruling in Malta centers on a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, trading as Lottoland. An Austrian court had earlier allowed the player to recover their losses due to the operator’s illegality in the market. Still, the case was escalated to a local court by the Malta Gambling Authority (MGA).
Malta’s courts have stated that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) permits services, such as online gambling, to be available across EU states. It serves as a “primary source of community law” and a “fundamental rule of the legal order” for the EU and Malta.
Malta’s court further argued that Austria’s federal law on games of chance and its online gaming monopoly oppose the TFEU. As a result, the Maltese court declined to enforce the Austrian judgments, highlighting that they are at odds with Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, indicated that the ruling 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 pointed out that Austria’s monopoly compliance with EU law has been questioned on several occasions.
She mentioned that multiple 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). Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, asserting that it reinforced the operator’s previously expressed stance 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, leading players to seek recoupment of their losses. That decision impacted Betclic Everest subsidiary Bet-at-home, which was required to pay €2.8 million in player losses nearly three years after its market exit.
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator. The courts found that both the player and operator violated Austrian gambling laws, making the contract invalid. Essentially, the decision concluded that both parties knowingly operated illegally, and the player had to pay the operator’s court fees.
## Potential Liberalization of Austrian Online Gambling
Player disputes involving Austria and Maltese-based operators might diminish in the coming years as Austria is poised to end its online casino monopoly. Casinos Austria was granted a 15-year license and monopoly on online gambling, but its license is set to expire on 30 September 2027, and 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 about Austrian online gambling transitioning 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, stating, “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 ruled that it will not enforce Austrian court judgments favoring players being awarded refunds for gambling on sites not locally licensed.