The ruling, delivered on 27 February, supported Malta-licensed operators that had been conducting business in Austria’s market without a local license. The court determined that prior Austrian judgments conflicted with Maltese public policy.
Austria’s online gambling scene is primarily controlled by monopoly operator Casinos Austria. Its Win2Day service is currently the sole licensed online offering in the country.
Similar to Germany, Austria’s market has encountered several high-profile claims with players attempting to reclaim losses from offshore operators, categorized as illegal within these markets.
Players gambling outside this monopoly have often found themselves in court, recovering losses from illegal operators, while others have been required to return winnings to unlicensed operators. Frequently, the operators involved in these cases are licensed in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who gambled in 2020, losing €38,325 ($39,845/£31,653) with Malta-licensed operator European Lotto and Betting Limited, which operates as Lottoland.
An Austrian court had previously allowed the betting party to recover their losses due to the operator’s illegality in the market. However, the case was taken to a local court by the Malta Gambling Authority (MGA).
Malta’s courts contended that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) facilitates the provision of services (such as online gambling) across EU states.
It serves 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 argued that Austria’s federal law on games of chance and its online gaming monopoly contravene the TFEU.
Consequently, the Maltese court refused to enforce the Austrian judgments, asserting that they oppose Maltese public policy.
Davinia Cutajar, acting on behalf of the MGA and a legal partner at WH Partners, stated that the decision holds 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 compliance with EU law by the Austrian monopoly has been questioned multiple times.
She pointed out that several Court of Justice of the European Union (CJEU) rulings support the stance that Austria’s monopoly model breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, stating 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, with players seeking to recover their losses.
This decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years post its market withdrawal (in August 2024).
In another case last year, an Austrian customer was ordered to return winnings to an unnamed unlicensed operator. The courts concluded that both player and operator breached Austrian gambling laws, making their contract invalid.
This decision essentially ruled that both parties knowingly operated illegally, obligating the player to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
This kind of player dispute involving Austria and Maltese-based operators might diminish in the coming years, as Austria is expected to end the country’s online casino monopoly.
Casinos Austria received a 15-year license for online gambling, expiring on 30 September 2027. Austrian authorities are anticipated to begin the new license tendering process this year.
Simon Priglinger-Simader, VP of the Austrian Betting and Gaming Association, expressed earlier this month that he was “optimistic for the first time ever” about Austrian online gambling possibly moving away from the monopoly system.
Last December, Maarten Haijer, president and secretary-general of the European Gambling and Betting Association (EGBA), urged Austria to open up online gambling.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer said. “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 favored players receiving refunds for gambling on sites without local licenses.