The ruling delivered on 27 February supported Malta-licensed operators conducting business in Austria’s market without a local license. The court stated that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling landscape is dominated by the monopoly operator Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
Austria, alongside Germany, has faced numerous high-profile claims where players have attempted to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have found themselves in court, either getting back losses from illegal operators or having to repay winnings to unlicensed operators. Many of these operators 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) with Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that the betting party could recover their losses due to the operator’s illegality in the market, but the Malta Gambling Authority (MGA) brought the case to a local court.
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) provides for services (like online gambling) to be delivered 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 contended that Austria’s federal law on games of chance and its online gaming monopoly go against the TFEU.
As a result, the Maltese court has refused to enforce the Austrian judgments, asserting that they are contrary to Maltese public policy.
Acting on behalf of 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 compliance of Austria’s monopoly with EU law has been questioned on multiple occasions.
She mentioned that numerous rulings from the Court of Justice of the European Union (CJEU) support 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, welcomed Malta’s landmark decision, emphasizing that 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 illegally operating in the country, leading to invalid player contracts and players seeking to recoup their losses.
This decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses three years after its market withdrawal (in August 2024).
In another case last year, an Austrian customer was ordered to return winnings to an unlicensed operator. The courts concluded that both the player and operator breached Austrian gambling laws, rendering the contract between them invalid.
Essentially, the decision determined that both parties knowingly operated illegally, requiring the player to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
These types of player disputes involving Austria and Maltese-based operators could decrease in the coming years as Austria is likely to end its online casino monopoly.
Casinos Austria was granted a 15-year license and monopoly on online gambling, due to expire on 30 September 2027. Austrian authorities are expected to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism that Austrian online gambling could move away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer called for 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 favoring players in obtaining refunds for gambling on sites not locally licensed.