## Court Ruling Supports Malta-Licensed Operators
The ruling delivered on 27 February favored Malta-licensed operators that had been conducting business in Austria’s market without a local license. The court determined that previous Austrian judgments were in conflict with Maltese public policy.
Austria’s online gambling market is dominated by the monopoly operator Casinos Austria, with its Win2Day platform being the only licensed online product available in the country.
The market, along with Germany, has faced several high-profile claims from players seeking to recover losses from offshore operators, which are deemed illegal in these jurisdictions.
Players gambling outside the monopoly have occasionally succeeded in court, winning back losses from illegal operators, while others have been required to return winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The recent Maltese ruling addressed a player who, in 2020, lost €38,325 ($39,845/£31,653) through a Malta-licensed operator, European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that 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 Article 56 of the Treaty on the Functioning of the European Union (TFEU) permits services, such as online gambling, to be offered across EU states. This article is a “primary source of community law” and a “fundamental rule of the legal order” for both the EU and Malta.
The Maltese court also contended that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
Consequently, the Maltese court refused to enforce the Austrian judgments, declaring them contrary to Maltese public policy.
Davinia Cutajar, legal partner at WH Partners, representing the MGA, stated that 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 remarked that Austria’s monopoly compliance with EU law has been questioned on numerous occasions.
She noted that various rulings from the Court of Justice of the European Union (CJEU) support the view that Austria’s monopoly model violates Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed the Maltese decision as it confirmed the operator’s previously held position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were operating illegally, declaring player contracts invalid and prompting players to recoup their losses.
This ruling affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after withdrawing from the market in August 2024.
In another case last year, an Austrian customer was mandated to return winnings to an unnamed unlicensed operator. The courts found that both the player and operator breached Austrian gambling laws, rendering their contract invalid.
The decision concluded that both parties knowingly engaged in illegal activities, resulting in the player being ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
These types of player disputes involving Austria and operators based in Malta may decrease in the coming years as Austria potentially ends the country’s online casino monopoly.
Casinos Austria was granted a 15-year license, monopolizing online gambling, set to expire on 30 September 2027. Austrian authorities are expected to begin the process of issuing new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month about potentially moving away from the monopoly system in Austrian online gambling.
In December, European Gambling and Betting Association (EGBA) president 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 stated. “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 not licensed locally.