The ruling, delivered on 27 February, supported Malta-licensed operators that had conducted business in Austria’s market without a local license. The court asserted that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling scene is dominated by monopoly operator Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
The market, alongside Germany, has faced several high-profile player loss claims where players have tried to reclaim losses from offshore operators considered illegal within these markets.
Players who gamble outside this monopoly have often found themselves in court, with some being refunded for losses from illegal operators, while others have had to pay back winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The recent Maltese ruling involves 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 decided that the player could recover their losses due to the operator’s illegality in the market, but the case was taken 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.
This acts as a “primary source of community law,” which is 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 violate the TFEU.
As a result, the Maltese court has refused to enforce the Austrian judgments, declaring them contrary to Maltese public policy.
On behalf of the MGA, Davinia Cutajar, legal partner at WH Partners, 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 pointed out that the Austrian monopoly’s compliance with EU law has been questioned multiple times.
She noted that numerous rulings from the Court of Justice of the European Union (CJEU) supported the stance 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.
## 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 recover their losses.
That decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost 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 in the market. The courts determined that both the player and operator had violated Austrian gambling laws, rendering the contract between them invalid.
Essentially, the decision ruled that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
Such player disputes involving Austria and Maltese-based operators may decrease in the coming years as Austria is likely moving toward ending the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and monopoly on online gambling. However, its license is set to expire on 30 September 2027. Austrian authorities are expected to begin the licensing process for new operators this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month about the potential shift away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer called for Austria to open up online gambling.
He stated, “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 not to enforce Austrian court judgments that favored players receiving refunds for gambling on sites without local licenses.