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 landscape is dominated by monopoly operator Casinos Austria. Its Win2Day platform is currently the only licensed online product in the country.
The market, along with Germany, has faced several high-profile claims where players have attempted to reclaim losses from offshore operators, as they are considered illegal within these markets.
Players gambling outside this monopoly have found themselves in court, either recuperating losses from illegal operators or paying back winnings to unlicensed operators. In many cases, the operators involved are licensed in Malta.
## Malta Judgment
The recent Maltese ruling pertains to 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 ruled that the bettor could recover their losses due to the operator’s illegality in the market. However, the case was brought to a local court by the Malta Gambling Authority (MGA).
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 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 violate the TFEU.
Consequently, the Maltese court refused to enforce the Austrian judgments, stating that they were contrary to Maltese public policy.
Representing 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 the compliance of the Austrian monopoly with EU law has been questioned on multiple occasions.
She mentioned 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, asserting it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, deeming player contracts invalid, leading players to seek reimbursement for their losses.
This decision had repercussions for 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 a separate case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator in the market. The courts found that both the player and operator had violated Austrian gambling laws, rendering the contract between them invalid.
This decision essentially ruled that both parties knowingly operated illegally, with the player being ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
These types of player disputes involving Austria and Maltese-based operators might 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 will expire on 30 September 2027. Austrian authorities are expected to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month that Austrian online gambling could move away from the monopoly system.
This past December, European Gambling and Betting Association (EGBA) president and secretary general Maarten Haijer called for Austria to open up online gambling.