The ruling delivered on 27 February supported Malta-licensed operators conducting business in Austria’s market without a local license. The court found that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling sector is dominated by the monopoly operator Casinos Austria, with Win2Day being the only licensed online product in the country.
This market, like Germany, has seen several high-profile player loss claims, where players have attempted to reclaim losses from offshore operators deemed illegal within these jurisdictions.
Players gambling outside this monopoly have experienced court cases where they recovered losses from illegal operators, while others have had to return winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The Maltese ruling this week concerned a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, trading as Lottoland.
An Austrian court had previously determined that the player could reclaim their losses due to the operator’s illegality in the market. However, the case was brought to a local court by the Malta Gambling Authority (MGA).
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows services (like online gambling) to be provided across EU states.
It 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 contended that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
As a result, the Maltese court refused to enforce the Austrian judgments, stating they were 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 multiple times.
She mentioned that numerous rulings from the Court of Justice of the European Union (CJEU) supported the position that Austria’s monopoly model violates Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, affirming it supported 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 illegally operating in the country, player contracts were deemed invalid, and players sought to recover their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8 million in player losses nearly three years after its market exit.
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator. The courts found that both the player and operator violated Austrian gambling laws, rendering their contract invalid.
Essentially, that decision concluded that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
These types of player disputes involving Austria and Maltese-based operators might decrease in the coming years, as Austria is likely nearing the end of its online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling. However, its license is set to expire on 30 September 2027. Austrian authorities are expected to begin 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.
This past December, the 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 being refunded for gambling on sites that were not locally licensed.