**The ruling, delivered on 27 February, supported Malta-licensed operators that conducted business in Austria’s market without a local license. The court determined that previous Austrian judgments were contrary to Maltese public policy.**
Austria’s online gambling landscape is predominantly controlled by monopoly operator Casinos Austria, with its Win2Day offering currently being the only licensed online product in the country.
The market, alongside Germany, has seen several high-profile player loss claims, where players have attempted to recover losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have sometimes been able to reclaim losses from illegal operators, while others have been required to return winnings to unlicensed operators. Often, the operators involved in these cases 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) with Malta-licensed operator European Lotto and Betting Limited, trading as Lottoland.
An Austrian court had previously allowed the gambling party to recover their losses due to the operator’s illegality in the market, but the case was escalated to a local court by the Malta Gaming Authority (MGA).
Malta’s courts contended that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) provides for services (including online gambling) to be offered across EU states.
This acts as a “primary source of community law,” which is 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.
As a result, the Maltese court has declined to enforce the Austrian judgments, stating they are contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, said the decision has significant ramifications 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 highlighted that the Austrian monopoly’s compliance with EU law has been questioned multiple times.
She mentioned that numerous rulings from the Court of Justice of the European Union (CJEU) have supported the position 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 the landmark decision in Malta, saying it reinforced the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, player contracts were deemed invalid, and players sought to recoup their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years following its withdrawal from the market.
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed operator. The courts found that both the player and operator breached Austrian gambling laws, rendering the contract between them invalid.
Essentially, that decision ruled that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators could decrease in the forthcoming years, as Austria may end the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, but its license is set to expire on 30 September 2027. Austrian authorities are expected to start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism that Austrian online gambling could shift away from the monopoly system.
This past December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer issued a call for Austria to liberalize 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 favoring players receiving refunds for gambling on sites not locally licensed.