**February 27 Ruling: Support for Malta-Licensees**
The ruling issued on February 27 favored Malta-licensed operators conducting business in Austria’s market without a local license, with the court finding previous Austrian judgments contradictory to Maltese public policy.
**Austrian Online Gambling Context**
In Austria, the online gambling scene is dominated by the monopoly operator, Casinos Austria, with its Win2Day offering being the sole licensed online product available. Similar to Germany, the market has encountered numerous high-profile claims where players have sought to reclaim losses from offshore operators, deemed illegal within these jurisdictions.
Many players, engaging outside the monopoly, have experienced court rulings returning their losses from illegal operators, while others have been required to repay winnings to unlicensed operators. Frequently, these operators involved have Malta licenses.
## Maltese Judgment
The recent Maltese ruling pertains to a case involving a player who lost €38,325 ($39,845/£31,653) with the Malta-licensed operator, European Lotto and Betting Limited, operating under Lottoland, in 2020. An Austrian court had initially ruled the player could recover losses due to the operator’s illegality in the market. However, the Malta Gambling Authority (MGA) pursued the matter in a local court.
Malta’s courts have contended that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) facilitates the provision of services, like online gambling, across EU states. It serves as a “primary source of community law,” seen as a “fundamental rule of the legal order” for both the EU and Malta. Maltese courts also argue that Austria’s federal law on games of chance and its online gaming monopoly contravene the TFEU, thus refusing to uphold the Austrian judgments on the grounds of Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated the decision significantly impacts the gambling industry by “reinforcing the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.” Cutajar also highlighted that Austria’s monopoly compliance with EU law is frequently challenged. Numerous rulings from the Court of Justice of the European Union (CJEU) support the position 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, noting it reinforced the operator’s stance on the matter.
## Previous Austrian Rulings
In 2021, the Austrian Supreme Court declared foreign igaming brands were operating illegally, leading to invalid player contracts and player attempts to recover losses. This ruling impacted Betclic Everest subsidiary Bet-at-home, which was mandated to pay €2.8m in player losses nearly three years post-market withdrawal. In another case last year, an Austrian client was ordered to return their winnings to an unnamed unlicensed operator, as both parties were found to have breached Austrian gambling laws, rendering their contract null and void. Consequently, the player was also subjected to covering the operator’s court costs.
## Prospects for Austrian Online Gambling Liberalization
Such player disputes between Austria and Maltese-based operators may diminish as Austria approaches potentially ending its online casino monopoly. With Casinos Austria holding a 15-year license set to expire on September 30, 2027, Austrian authorities are expected to initiate a new license tender process this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism regarding potential shifts in Austrian online gambling away from the monopoly system. European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer has called for Austria to liberalize online gambling, asserting, “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 declared it will not enforce Austrian court judgments favoring player refunds for gambling on non-locally licensed sites.