## Malta Ruling
The ruling, delivered on 27 February, supported Malta-licensed operators who had conducted business in Austria’s market without a local license. The court found that previous Austrian judgments conflicted with 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.
Similar to Germany, Austria has experienced numerous high-profile player loss claims, where players attempt to reclaim losses from offshore operators deemed illegal in these markets.
Players who gamble outside the monopoly sometimes recover losses from illegal operators, while others end up repaying winnings to unlicensed operators. Many of these cases involve operators licensed in Malta.
### Malta Judgement
The recent Maltese ruling involves a player who lost €38,325 ($39,845/£31,653) in 2020 via Malta-licensed operator European Lotto and Betting Limited, known as Lottoland.
An Austrian court had initially ruled that the player could recover their losses due to the operator’s illegality in the market. However, the case was brought forward by the Malta Gaming Authority (MGA).
Maltese courts argued that EU Article 56 of the Treaty on the Functioning of the European Union (TFEU) allows for services, such as online gambling, to be provided across EU states. It is a “primary source of community law,” described as a “fundamental rule of the legal order” for both the EU and Malta.
The Maltese court also contended that Austria’s federal law on games of chance and its online gaming monopoly contradicts the TFEU. Consequently, the Maltese court rejected the enforcement of Austrian judgments, stating they conflicted with Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, emphasized 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 highlighted that the compliance of the Austrian monopoly with EU law has been questioned multiple times.
She noted that several 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.
Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, affirming that it supported the operator’s previously expressed stance on the issue.
### Past Austrian Decisions
In 2021, the Austrian Supreme Court determined that foreign igaming brands were illegally operating in the country, deeming player contracts invalid and allowing players to recover 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 exiting the market in August 2024.
In another case last year, an Austrian customer was required to return winnings to an unnamed unlicensed operator. The courts concluded that both the player and operator violated Austrian gambling laws, rendering their contract invalid. The decision mandated that since both parties knowingly operated illegally, the player had 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 future as Austria is likely to end the country’s online casino monopoly.
Casinos Austria holds a 15-year license, granting it a monopoly on online gambling. This license is set to expire on 30 September 2027, and Austrian authorities are expected to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism regarding a potential shift from the monopoly system in Austrian online gambling.
In December, European Gambling and Betting Association (EGBA) secretary general Maarten Haijer called for Austria to open up online gambling, noting: “The evidence from across Europe is clear and compelling: multi-licensing works. It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue.”
The Maltese Civil Court has ruled it will not enforce Austrian court judgments that favored awarding refunds to players for gambling on sites not locally licensed.