**Ruling Highlights**
The ruling, delivered on 27 February, supported operators licensed in Malta that had conducted business in Austria’s market without a local license. The court stated 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 faced numerous high-profile player loss claims. Players have attempted to reclaim losses from offshore operators deemed illegal within these jurisdictions.
Players who gamble outside this monopoly have found themselves in court, recovering losses from illegal operators in the market, while others have had to repay winnings to unlicensed operators. In many cases, the operators involved in these situations are licensed in Malta.
## Malta Judgment
The recent Maltese ruling concerns a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously decided that the betting party 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 for services (like online gambling) to be provided across EU states.
It serves 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 conflict with the TFEU.
Therefore, the Maltese court refused to enforce the Austrian judgments, deeming them contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated that the decision holds 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 the Austrian monopoly’s compliance with EU law has been questioned on several occasions.
She mentioned 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, noting that it reinforced the operator’s previously expressed position on the issue.
## 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 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. The courts found that both the player and operator had violated Austrian gambling laws, rendering the contract between them invalid.
That decision essentially ruled that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This type of player dispute involving Austria and Maltese-based operators could decrease in the coming years as Austria is likely on the verge of ending the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling. However, its license is set to expire on 30 September 2027. Austrian authorities are expected to start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader recently expressed optimism about Austrian online gambling moving 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.
“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 being awarded refunds for gambling on sites not locally licensed.