The ruling delivered on February 27 supported Malta-licensed operators that had conducted business 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 scene is dominated by monopoly operator Casinos Austria. Its Win2Day platform is currently the only licensed online product available in the country.
The market, along with Germany, has experienced several high-profile player loss claims, where players have tried to recover losses from offshore operators since these are deemed illegal within these markets.
Players gambling outside this monopoly have sometimes managed to get refunded for losses from illegal operators in the market, while others have been required to return winnings to unlicensed operators. Many operators involved in these cases hold licenses in Malta.
## Malta Judgment
The Maltese ruling this week concerns a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) via the Malta-licensed operator European Lotto and Betting Limited, trading under Lottoland.
An Austrian court had previously decided that the bettor could reclaim their losses due to the operator’s illegality in the market, but the case was escalated to a local court by the Malta Gambling Authority (MGA).
Malta’s courts argued that Article 56 of the Treaty on the Functioning of the European Union (TFEU) provides for services (such as online gambling) to be offered across EU states.
It serves 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 contradict the TFEU.
As a result, the Maltese court has refused to enforce the Austrian judgments, claiming they conflict with Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, indicated 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 Austrian monopoly’s compliance with EU law has been questioned on several occasions.
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 that it reaffirmed the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, player contracts were deemed invalid, allowing players to seek recoupment of their losses.
That decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after its market exit (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 determined that both player and operator had violated Austrian gambling laws, rendering their contract invalid.
This decision essentially ruled that both parties knowingly operated illegally, and the player was instructed to cover the operator’s court expenses.
## Austrian Online Gambling Facing Liberalization
This type of player dispute involving Austria and Maltese-based operators could diminish in the coming years as Austria appears to be on the brink of ending the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling. However, its license is set to expire on September 30, 2027. Austrian authorities are expected to begin tendering for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month about the possibility of Austrian online gambling moving away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) 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 in favor of players receiving refunds for gambling on sites not locally licensed.