The ruling delivered on 27 February supported Malta-licensed operators that conducted business in Austria’s market without a local license. The court ruled that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling landscape is dominated by monopoly operator Casinos Austria, with its Win2Day offering currently being the only licensed online product in the country.
The market, along with Germany, has faced several high-profile player loss claims, as players have attempted to reclaim losses from offshore operators, which are deemed illegal in these markets.
Players gambling outside this monopoly have found themselves in court, sometimes having losses returned from illegal operators, while others have had to pay back winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The recent Maltese ruling concerns a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) via European Lotto and Betting Limited, operating as Lottoland, a Malta-licensed operator.
An Austrian court had previously ruled that the player could recover their losses due to the operator’s illegality in the market, but 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) provides for services like online gambling to be offered across EU states.
It is considered 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 contradict the TFEU.
As a result, the Maltese court refused to enforce the Austrian judgments, stating that they are contrary to Maltese public policy.
Davinia Cutajar, acting on behalf of the MGA and a 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 Austria’s monopoly’s compliance with EU law has been questioned multiple times.
She remarked that numerous rulings from the Court of Justice of the European Union (CJEU) support the position 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 the landmark decision in Malta, stating it reinforced the operator’s previously expressed position on the matter.
## 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 nearly three years after its market withdrawal (in August 2024).
In another case last year, an Austrian customer was ordered to return winnings to an unnamed unlicensed operator. The courts found that both the player and operator violated 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 pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
This type of player dispute involving Austria and Maltese-based operators could lessen in the coming years as Austria is likely on the verge of ending its online casino monopoly.
Casinos Austria was granted a 15-year license and monopoly on online gambling. However, the license is set to expire on 30 September 2027. Austrian authorities are expected to begin the tendering process for new licenses this year.
Simon Priglinger-Simader, VP of the Austrian Betting and Gaming Association, expressed optimism earlier this month that Austrian online gambling could move away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president Maarten Haije called for Austria to open up online gambling.