**Ruling Supports Malta-Licensed Operators in Austria**
The ruling delivered on 27 February supported Malta-licensed operators that had been operating in Austria’s market without a local license. The court decided that prior Austrian judgments were not in alignment with Maltese public policy.
Austria’s online gambling scene is largely controlled by the monopoly operator Casinos Austria, with its Win2Day platform being the only licensed online product in the country. The market, alongside Germany, has seen multiple high-profile claims from players attempting to recover losses from offshore operators, which are considered illegal in these regions. Players who gamble outside this monopoly have sometimes had their losses returned by illegal operators in the market, while others have been required to repay winnings to unlicensed operators. Many of the operators involved in these cases hold licenses 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, operating as Lottoland. An Austrian court had initially ruled that the player could reclaim their losses due to the operator’s illegality in the market, but the matter 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 for services, such as online gambling, to be offered across EU states.
This article 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 further argued that Austria’s federal law on games of chance and its online gaming monopoly conflict with the TFEU. Thus, the Maltese court refused to uphold Austrian judgments, asserting that they contradict Maltese public policy. Representing the MGA, Davinia Cutajar, legal partner at WH Partners, remarked that this decision has notable repercussions for the gambling sector as it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.” Cutajar also emphasized that Austria’s monopoly’s alignment with EU law has been questioned repeatedly.
She noted that numerous decisions from the Court of Justice of the European Union (CJEU) supported 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 as it reinforced the operator’s previously stated stance on the issue.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court declared that foreign igaming brands were operating illegally in the country, rendering player contracts invalid and leading players to seek to reclaim losses. That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after exiting the market. In another case last year, an Austrian customer was instructed to return their winnings to an unlicensed operator in the market. The courts determined that both the player and operator had violated Austrian gambling laws, rendering the contract between them invalid. Ultimately, that decision ruled that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court costs.
## Austrian Online Gambling Facing Liberalization
This type of player dispute involving Austria and Maltese-based operators could diminish in the upcoming years as Austria is likely moving towards ending the country’s online casino monopoly. Casinos Austria was granted 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 commence the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month that Austrian online gambling could potentially transition away from the monopoly system. This past 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 said. “It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue.”
The Maltese Civil Court has determined that it will not enforce Austrian court judgments that were in favor of players receiving refunds for gambling on sites that were not locally licensed.