**The Ruling in Malta**
The ruling delivered on 27 February favored Malta-licensed operators conducting business in Austria’s market without a local license. It concluded that previous Austrian judgments contradicted Maltese public policy.
Austria’s online gambling scene is dominated by monopoly operator Casinos Austria, with its Win2Day platform being the only licensed online product in the country. Like Germany, the market has seen several high-profile claims where players attempted to reclaim losses from offshore operators deemed illegal.
Players gambling outside the monopoly have been involved in court cases where they received refunds from illegal operators or had to return winnings to unlicensed operators, most of whom are licensed in Malta.
**Malta Judgment**
The recent Maltese ruling pertains to a player who lost €38,325 in 2020 using Malta-licensed operator European Lotto and Betting Limited, known as Lottoland. An Austrian court initially ruled the betting party could recover their losses due to the operator’s illegality in the market, but the case was escalated by the Malta Gambling Authority (MGA).
Malta’s courts argue that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services like online gambling across EU states, highlighting it as a fundamental legal framework for both the EU and Malta. They contend that Austria’s federal law on games of chance and its online gaming monopoly violate the TFEU.
As a result, the Maltese court has refused to enforce Austrian judgments, stating they conflict with Maltese public policy.
Representing the MGA, Davinia Cutajar of WH Partners remarked that the decision significantly impacts the gambling industry by reinforcing Maltese regulatory authority and jurisdiction over gambling matters. Cutajar also noted that the legality of Austria’s monopoly under EU law has been questionable on multiple occasions.
She noted numerous rulings from the Court of Justice of the European Union (CJEU) support the stance that Austria’s monopoly model infringes Article 56 of the TFEU.
In comments to iGB, Nigel Birrell, group CEO of Lottoland, welcomed Malta’s decision, reinforcing the operator’s stance on the issue.
**Past Austrian Decisions**
In 2021, the Austrian Supreme Court declared that foreign igaming brands were operating illegally in the country, invalidating player contracts and allowing players to reclaim losses. This decision affected Betclic Everest subsidiary Bet-at-home, required to pay €2.8m in player losses nearly three years after exiting the market in August 2024.
In another case, an Austrian customer was instructed to return winnings to an unnamed unlicensed operator. The court found both parties violated Austrian gambling laws, deeming their contract invalid and ordering the player to cover the operator’s court fees.
**Austrian Online Gambling Facing Liberalization**
Player disputes between Austria and Maltese-based operators could diminish as Austria may end its online casino monopoly. Casinos Austria’s 15-year license and monopoly on online gambling are set to expire on 30 September 2027, with the Austrian authorities expected to start the licensing process this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader recently expressed optimism about Austria moving away from the monopoly system. In December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer advocated for opening Austria’s online gambling market, stating that multi-licensing effectively regulates gambling activity, protects consumers, and generates tax revenue.
The Maltese Civil Court has decided not to enforce Austrian court judgments favoring players awarded refunds for gambling on non-locally licensed sites.