**Ruling Backs Malta-Licensed Operators in Austrian Market**
The ruling, delivered on 27 February, supported Malta-licensed operators conducting business in Austria’s market without a local license. The court found that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling landscape is monopolized by Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
Both the Austrian and German markets have seen high-profile player loss claims where players attempted to reclaim losses from offshore operators considered illegal within these regions. Players gambling outside this monopoly have faced legal actions, sometimes recovering losses from illegal operators, while others have had to return winnings to unlicensed operators. Many operators in these cases are licensed in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who, in 2020, lost €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court originally ruled the player could recover these losses due to the operator’s illegality in the market. However, 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 services like online gambling to be offered across EU states. This acts as a “primary source of community law,” providing a “fundamental rule of the legal order” for both the EU and Malta. Malta’s court also argued that Austria’s federal law on games of chance and its online gaming monopoly conflict with the TFEU. As such, the Maltese court refused to enforce the Austrian judgments, stating they contradict Maltese public policy.
Davinia Cutajar, acting on behalf of the MGA and a 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 pointed out that Austria’s monopoly compliance with EU law has been questioned multiple times. She mentioned numerous rulings from the Court of Justice of the European Union (CJEU) supported the position that Austria’s monopoly model violates Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, stating it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, player contracts were deemed invalid, leading players to seek recoupment of their losses.
This decision impacted Betclic Everest subsidiary Bet-at-home, ordered to pay €2.8m in player losses almost 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 courts deemed both the player and operator violated Austrian gambling laws, rendering the contract between them invalid. Consequently, the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
These types of player disputes involving Austria and Maltese-based operators could decrease as Austria looks to end its online casino monopoly.
Casinos Austria was given a 15-year license monopoly on online gambling, set to expire on 30 September 2027. Austrian authorities are expected to start tendering for new licenses this year.
Simon Priglinger-Simader, Austrian Betting and Gaming Association VP, recently expressed optimism that Austrian online gambling might move away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) president 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 ruled it will not enforce Austrian court judgments that favored players being awarded refunds for gambling on sites not locally licensed.