**The Ruling and Its Impact**
On February 27, a ruling was delivered in favor of Malta-licensed operators who had been operating in the Austrian market without a local license. The court found that previous Austrian judgments conflicted with Maltese public policy.
**Austrian Market and Monopoly**
The online gambling sector in Austria is dominated by the monopolistic operator, Casinos Austria. Currently, their Win2Day platform is the only licensed online product available in the country.
Austria, much like Germany, has faced numerous high-profile player claims. Players have aimed to reclaim losses from offshore operators, which are considered illegal in these markets. Those engaging with operators outside the monopoly sometimes find themselves in court, with some recovering losses and others being forced to return winnings to unlicensed operators. Many of these operators have Malta licenses.
**Malta’s Judgment**
The Maltese ruling involved a player who lost €38,325 in 2020 with Malta-licensed European Lotto and Betting Limited, operating as Lottoland. An Austrian court had earlier ruled that the player could reclaim these losses due to the operator’s illegal status in the market, leading the Malta Gambling Authority (MGA) to escalate the issue to a local court.
Malta’s courts referenced EU Article 56 from the Treaty on the Functioning of the European Union (TFEU), which permits services like online gambling to be offered across EU states. This article is viewed as a “primary source of community law” and a “fundamental rule of the legal order” for both the EU and Malta. The Maltese court argued that Austria’s laws on games of chance and the online gaming monopoly contradict the TFEU.
As a result, the court refused to enforce the Austrian judgments, stating they were contrary to Maltese public policy. Davinia Cutajar, a legal partner at WH Partners representing the MGA, remarked that this decision underscores the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling matters. Cutajar also pointed out the recurrent questioning of Austria’s monopoly compliance with EU law.
Several rulings from the Court of Justice of the European Union (CJEU) have shared the view that Austria’s monopoly model breaches Article 56 of the TFEU. Nigel Birrell, group CEO of Lottoland, supported Malta’s landmark decision, stating it aligns with the operator’s previously held position.
**Past Austrian Decisions**
In 2021, the Austrian Supreme Court determined that foreign igaming brands were operating illegally, invalidating player contracts and leading players to seek compensation for their losses. This decision affected Betclic Everest’s subsidiary Bet-at-home, which was ordered to pay €2.8 million in player losses nearly three years after its market exit. Furthermore, an Austrian customer was required to return winnings to an unlicensed operator, as both parties had violated Austrian gambling laws, nullifying their contract.
**Future of Austrian Online Gambling**
The frequency of such disputes may decline as Austria seems set to end its online casino monopoly. Casinos Austria holds a 15-year license until September 30, 2027, but Austrian authorities are expected to start tendering for new licenses this year. Simon Priglinger-Simader, VP of the Austrian Betting and Gaming Association, voiced optimism about moving away from the monopoly system.
In December, Maarten Haijer, president of the European Gambling and Betting Association (EGBA), encouraged Austria to liberalize online gambling: “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 has decided not to enforce Austrian court judgments that favored players awarded refunds for gambling on sites without local licenses.