The ruling, delivered on 27 February, supported Malta-licensed operators that operated in Austria’s market without a local license. The court determined that previous Austrian judgments were against Maltese public policy.
Austria’s online gambling market is dominated by the monopoly operator Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
The market, similar to Germany, has experienced numerous high-profile player loss claims, where players attempt to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have ended up in court, sometimes recovering losses from illegal operators, while others have been required to repay winnings to unlicensed operators. In many of these cases, the operators involved are licensed in Malta.
## Malta Judgment
The Maltese ruling this week relates to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that the bettor could recover losses due to the operator’s illegality in the market. However, the Malta Gambling Authority (MGA) brought the case to a local court.
Malta’s courts argued that Article 56 of the Treaty on the Functioning of the European Union (TFEU) provides for services, like online gambling, to be offered across EU states.
It is 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 conflicts with the TFEU.
Thus, the Maltese court refused to uphold the Austrian judgments, stating they contradict Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, said the decision significantly impacts the gambling industry as it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar noted that the Austrian monopoly’s compliance with EU law has been questioned several times.
She mentioned in a post on the firm’s website that numerous rulings from the Court of Justice of the European Union (CJEU) backed the view that Austria’s monopoly model violates Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision. He said it supported the operator’s previously stated stance on the matter.
## 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 reclaim their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after its market exit (in August 2024).
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator in the market. The courts found that both player and operator violated Austrian gambling laws, rendering their contract invalid.
That decision essentially ruled that both parties knowingly operated illegally, and the player was required to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
This type of player dispute involving Austria and Maltese-based operators might decrease in the coming years, as Austria seems likely to end the country’s online casino monopoly.
Casinos Austria received a 15-year license and a monopoly on online gambling. However, this license is due 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 for a shift away from the monopoly system in Austrian online gambling.
This past December, European Gambling and Betting Association (EGBA) secretary general Maarten Haijer urged Austria to open up online gambling.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer stated. “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 being awarded refunds for gambling on sites not locally licensed.