The ruling, delivered on 27 February, 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 landscape is dominated by monopoly operator Casinos Austria, with its Win2Day offering currently the only licensed online product in the country.
The market, alongside Germany, has seen several high-profile player loss claims where players have attempted to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have sometimes been awarded losses from illegal operators in court, while others have been required to return winnings to unlicensed operators. Frequently, the operators involved in these cases 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) through 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) 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) allows for services (like online gambling) to be provided across EU states.
It is seen as 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 contradicts the TFEU.
Therefore, the Maltese court refused to enforce the Austrian judgments, citing them as contrary to Maltese public policy.
On behalf of the MGA, Davinia Cutajar, legal partner at WH Partners, stated that the decision has significant implications for the gambling industry, reinforcing the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.
Cutajar noted that the Austrian monopoly’s compliance with EU law has been questioned multiple times.
According to a post on the firm’s website, 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 to iGB, Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, emphasizing that it reinforced the operator’s previously expressed 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, and players sought to recoup their losses.
This 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 winnings to an unnamed unlicensed operator. The courts found that both the player and the operator violated Austrian gambling laws, rendering the contract between them invalid.
This decision concluded that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
This type of player dispute between Austria and Maltese-based operators could diminish in the coming years as Austria is likely to end its online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, which is set to expire on 30 September 2027. Austrian authorities are expected to begin the process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader recently expressed optimism that Austrian online gambling could shift away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) president secretary-general Maarten Haijer advocated for Austria to open up online gambling.
“The 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 being awarded refunds for gambling on sites not locally licensed.