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 past Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling scene is dominated by monopoly operator Casinos Austria, with its Win2Day platform being the only licensed online product available in the country.
The market, like Germany, has encountered several high-profile player loss claims where players have attempted to reclaim losses from offshore operators, which are considered illegal in these regions.
Players who gamble outside this monopoly have experienced varied outcomes in court, with some recovering losses from illegal operators in the market, while others have had to repay winnings to unlicensed operators. Many operators involved in these cases hold licenses in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who gambled in 2020, losing €38,325 ($39,845/£31,653) 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) challenged this in a local court.
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 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 conflicted with the TFEU.
Consequently, 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 highlighted that Austria’s monopoly’s compliance with EU law has often come under scrutiny.
She noted on the firm’s website that various 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, reaffirming the operator’s stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were operating illegally, it deemed player contracts invalid, with players seeking to reclaim their losses.
This decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after it withdrew from 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 determined that both player and operator broke Austrian gambling laws, rendering their contract invalid.
This decision essentially concluded 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 might decrease as Austria seems poised to end the country’s online casino monopoly.
Casinos Austria was awarded a 15-year license and a monopoly on online gambling. However, its license is due 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 expressed optimism to iGB earlier this month about moving away from the monopoly system for Austrian online gambling.
Last December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer urged 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 that it will not enforce Austrian court judgments favoring players awarded refunds for gambling on sites not licensed locally.