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 scene is dominated by the monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
The market, alongside Germany, has seen several high-profile player loss claims where players seek to reclaim losses from offshore operators deemed illegal in these markets.
Players gambling outside this monopoly have found themselves in court, either recovering losses from illegal operators or paying back winnings to unlicensed operators. In many cases, the operators involved are licensed in Malta.
## Malta Judgment
The Maltese ruling this week pertains to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through the Maltese operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that the player could recover their losses due to the operator’s illegality in the market, but 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 provided 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 argued that Austria’s federal law on games of chance and its online gaming monopoly conflict with the TFEU.
Consequently, the Maltese court has refused to enforce the Austrian judgments, deeming 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 noted that Austria’s monopoly’s compliance with EU law has been questioned on several occasions.
She stated that 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 Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, saying 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 declared invalid, and players sought to recoup their losses.
That decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after its market withdrawal (in August 2024).
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator. The courts found that both player and operator had violated Austrian gambling laws, rendering their contract invalid.
Essentially, that decision ruled that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators could decrease in the coming years as Austria may end the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and monopoly on online gambling, but its license expires on 30 September 2027. Austrian authorities are expected to start the tendering process for new licenses this year.
The Austrian Betting and Gaming Association VP, Simon Priglinger-Simader, expressed optimism for the first time ever that Austrian online gambling could transition away from the monopoly system.
This past 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 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 unlicensed sites in Austria.