## Ruling Overview
The ruling, delivered on 27 February, supported Malta-licensed operators that 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 landscape is dominated by the monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
The market, along with Germany, has faced several high-profile player losses claims where players have attempted to claim back losses from offshore operators deemed illegal within these markets.
Players who gamble outside this monopoly have ended up in court, where they either receive losses back from illegal operators or are ordered to return winnings to unlicensed operators. In many cases, the involved operators are licensed in Malta.
## Malta Judgment
The Maltese ruling this week concerns 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 previously allowed the betting party to recover their losses due to the operator’s illegality in the market. However, the case was brought to a local court by the Malta Gambling Authority (MGA).
Malta’s courts have 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 acts as a “primary source of community law,” 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 contravene the TFEU.
Therefore, the Maltese court refused to enforce the Austrian judgments, stating they are against Maltese public policy.
Acting on behalf of the MGA, Davinia Cutajar, legal partner at WH Partners, said 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 several times.
She stated 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, stating that 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, and players sought to recoup their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which had 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 in the market. The courts found that both player and operator violated Austrian gambling laws and that the contract between them was therefore invalid.
Essentially, that decision ruled that both parties knowingly operated illegally, and the player had to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This type of player dispute involving Austria and Maltese-based operators could diminish in the coming years as Austria is likely on the verge of ending the country’s online casino monopoly.
Casinos Austria was given a 15-year licence and a monopoly on online gambling. However, its licence is set to expire on 30 September 2027. Austrian authorities are expected to begin the tendering process for new licences this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism about the potential move away from the monopoly system in Austrian online gambling.
In December, European Gambling and Betting Association (EGBA) secretary-general Maarten Haijer called 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 ruled that it will not enforce Austrian court judgments that favored players receiving refunds for gambling on sites that were not locally licensed.