The ruling, delivered on 27 February, supported Malta-licensed operators that had been operating in Austria’s market without a local license. The court found that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling market is dominated by the monopoly operator Casinos Austria. Its Win2Day product is currently the only licensed online offering in the country.
Alongside Germany, the market has faced several high-profile player loss claims, with players attempting to reclaim losses from offshore operators deemed illegal within these jurisdictions.
Players gambling outside this monopoly have experienced court cases where losses were returned from illegal operators, while others ended up paying back winnings to unlicensed operators. Often, the operators involved are 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) with 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, but the Malta Gambling Authority (MGA) brought the case to a local court.
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.
This acts as 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 contravene the TFEU.
Therefore, the Maltese court refused to enforce the Austrian judgments, stating they are contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, highlighted 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 pointed out that the Austrian monopoly’s compliance with EU law has been questioned multiple times.
She stated in a post on the firm’s website that numerous rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model violates Article 56 of the Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, noting it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, rendering player contracts invalid and prompting players to seek refunds 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 customer was instructed to return winnings to an unnamed unlicensed operator. The courts determined that both the player and operator violated Austrian gambling laws, rendering their contract invalid.
Essentially, the decision concluded 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 decrease in the coming years as Austria is likely on the verge of ending the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, but its license is set 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 earlier this month that Austrian online gambling might move away from its monopoly system.
This past December, European Gambling and Betting Association (EGBA) president secretary-general Maarten Haijer called for Austria to open up online gambling.
“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 players receiving refunds for gambling on sites that were not locally licensed.