The ruling, delivered on 27 February, supported Malta-licensed operators that had conducted business in Austria’s market without a local license. The court stated that previous Austrian judgments conflicted with Maltese public policy.
Austria’s online gambling scene is monopolized by Casinos Austria, whose Win2Day offering is the sole licensed online product in the country.
The market, alongside Germany, has seen several high-profile player loss claims, as players have attempted to recover losses from offshore operators deemed illegal in these regions.
Players gambling outside this monopoly have faced court proceedings, receiving refunds from illegal operators, while others have had to return winnings to unlicensed operators. Many involved operators hold Malta licenses.
## Malta judgment
The recent ruling in Malta involves a player who gambled in 2020, losing €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 player could recover losses due to the operator’s illegality in the market, but the Malta Gambling Authority (MGA) appealed to a local court.
Malta’s courts argued that the EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) permits services like online gambling across EU states. This 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.
Consequently, the Maltese court refused to enforce the Austrian judgments, stating they conflict with Maltese public policy.
Davinia Cutajar, legal partner at WH Partners, representing the MGA, remarked 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 compliance with EU law has been questioned multiple times.
She mentioned that several rulings from the Court of Justice of the European Union (CJEU) support the view that Austria’s monopoly model violates Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, saying it reinforced the operator’s previously stated 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, leading players to seek reimbursement for their losses.
This decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after withdrawing from the market (in August 2024).
In another case last year, an Austrian player was required to return winnings to an undisclosed unlicensed operator. The courts determined that both the player and operator violated Austrian gambling laws, rendering their contract invalid.
Essentially, that ruling addressed the illegal activities of both parties, resulting in the player being ordered to cover the operator’s court fees.
## Austrian online gambling facing liberalisation
Such player disputes involving Austria and Maltese-based operators might decrease as Austria is expected to move away from its online casino monopoly.
Casinos Austria holds a 15-year license granting a monopoly on online gambling, which is set to expire on 30 September 2027. Austrian authorities are anticipated to initiate 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 shift away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer advocated for Austria to open its online gambling market.
“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 player refunds for gambling on sites without local licenses.