The ruling delivered on 27 February supported Malta-licensed operators conducting business in Austria’s market without a local license. The court declared that previous Austrian judgments were against Maltese public policy.
Austria’s online gambling landscape is dominated by a monopoly operator, Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
The market, alongside Germany, has seen several high-profile player loss claims, where players have attempted to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have ended up in court reclaiming losses from illegal operators, while others have been ordered to pay back winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The Maltese ruling pertains to a player who gambled in 2020 and lost €38,325 through Malta-licensed operator European Lotto and Betting Limited, known 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 Malta Gambling Authority (MGA) brought the case to a local court.
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 offered across EU states.
This acts as a “primary source of community law” and 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.
As a result, the Maltese court refused to enforce the Austrian judgments, deeming them contrary to Maltese public policy.
Davinia Cutajar, representing the MGA and a legal partner at WH Partners, stated 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 highlighted 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 breaches 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 on the matter.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, player contracts were invalidated, and players attempted to recover their losses.
This affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after its market withdrawal in August 2024.
In a separate case last year, an Austrian customer was told to return their winnings to an unnamed unlicensed operator. The courts concluded that both the player and operator had breached Austrian gambling laws, rendering their contract null and void.
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 Liberalisation
These player disputes involving Austria and Maltese-based operators might lessen in the coming years, as Austria is likely nearing the end of its online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, which 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 that Austrian online gambling could shift away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) secretary general Maarten Haijer urged 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.