**Malta Court Ruling Supports Operators in Austrian Market**
The ruling, delivered on 27 February, supported Malta-licensed operators conducting business in Austria’s market without a local license. The court determined that previous Austrian judgments conflicted with Maltese public policy.
Austria’s online gambling landscape is dominated by monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
The market, along with Germany, has seen numerous high-profile player loss claims where players tried to recover losses from offshore operators, considered illegal in these markets.
Players gambling outside this monopoly have found themselves in court, either having their losses returned from illegal operators or repaying winnings to unlicensed operators. Often, the operators involved in these cases are licensed in Malta.
## Malta Judgment
The Maltese ruling this week pertains to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through 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, but the case was brought to a local court by the Malta Gambling Authority (MGA).
Malta’s courts have argued that the EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services, like online gambling, to be provided across EU states.
It serves as a “primary source of community law” and is 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 contradict the TFEU.
As a result, the Maltese court has declined to enforce the Austrian judgments, asserting that they are 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 Austrian monopoly’s compliance with EU law has been questioned numerous times.
She mentioned that various rulings from the Court of Justice of the European Union (CJEU) supported the stance that Austria’s monopoly model violates Article 56 of the Treaty on the Functioning of the European Union (TFEU).
Nigel Birrell, group CEO of Lottoland, expressed support for the landmark decision in Malta, as he believes 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, rendering player contracts invalid and enabling players to recoup their losses.
This ruling affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8 million in player losses nearly three years after its market withdrawal.
In a separate case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator. The courts determined that both the player and operator had violated Austrian gambling laws, invalidating the contract between them.
This decision essentially found that both parties knowingly operated illegally, and the player was mandated to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
This type of player dispute involving Austria and Maltese-based operators might diminish in the coming years, as Austria is likely on the brink of ending the country’s online casino monopoly.
Casinos Austria was awarded a 15-year license and a monopoly on online gambling; however, this license is set to expire on 30 September 2027. Austrian authorities are anticipated to begin the tendering process for new licenses this year.
Simon Priglinger-Simader, VP of the Austrian Betting and Gaming Association, expressed optimism for the first time that Austrian online gambling could transition away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) president secretary-general Maarten Haijer urged Austria to open up online gambling.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer stated. “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 were in favor of players being awarded refunds for gambling on sites that were not locally licensed.