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 contrary to Maltese public policy.
Austria’s online gambling landscape is dominated by the monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
Similar to Germany, the market has seen several high-profile player loss claims, with players attempting to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have often found themselves in court, either having losses returned from illegal operators or being required to pay back winnings to unlicensed operators. Many of these cases involve operators 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) via Malta-licensed operator European Lotto and Betting Limited, trading 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 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 for services, such as online gambling, to be offered across EU states.
This acts as a “primary source of community law” and 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 violate the TFEU.
As such, the Maltese court has refused to enforce the Austrian judgments, stating they are contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, said the decision holds 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 pointed out that the Austrian monopoly’s compliance with EU law has been questioned multiple times.
She noted 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, saying it reinforced the operator’s previously expressed stance 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 recover their losses.
This decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after its market withdrawal 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 had violated Austrian gambling laws, rendering their contract invalid.
Essentially, the decision ruled that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This type of player dispute involving Austria and Maltese-based operators might decrease in the coming years as Austria is likely on the verge of ending the country’s online casino monopoly.
Casinos Austria was given a 15-year license and a monopoly on online gambling. However, its license expires on 30 September 2027. Austrian authorities are expected to commence 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.
“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 favoring players awarded refunds for gambling on sites not locally licensed.