### Malta Court Ruling on Austrian Online Gambling Dispute
The ruling delivered on 27 February supported Malta-licensed operators conducting business 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 landscape is dominated by the monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
The market, alongside Germany, has faced several high-profile player loss claims, with players attempting to recover losses from offshore operators, deemed illegal within these markets.
Players gambling outside this monopoly often find themselves in court, either reclaiming their losses from illegal operators or paying back winnings to unlicensed operators. Many operators involved in these cases hold licenses in Malta.
## Malta Judgment
The Maltese ruling concerns a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had earlier ruled that the betting party could recover their losses due to the operator’s illegality in the market, but the case was brought to a local court by the Malta Gaming Authority (MGA).
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows services like online gambling to be offered across EU states. It acts 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 argued that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU. As such, the Maltese court refused to enforce the Austrian judgments, stating they are contrary to Maltese public policy.
Acting on behalf of the MGA, Davinia Cutajar, a legal partner at WH Partners, said 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 the Austrian monopoly’s compliance with EU law has been questioned on several occasions. She highlighted that numerous rulings from the Court of Justice of the European Union (CJEU) supported the stance that Austria’s monopoly model violates Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, stating 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, leading players to seek to recoup their losses.
That decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after its market withdrawal.
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed operator in the market. The courts found that both player and operator had violated Austrian gambling laws, rendering the contract between them invalid. Essentially, that decision ruled that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
Such player disputes involving Austria and Maltese-based operators may 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. However, its license is set to expire on 30 September 2027, with Austrian authorities expected to begin the tendering process for new licenses soon.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader stated earlier this month that he was “optimistic for the first time ever” that Austrian online gambling could move away from the monopoly system.
This past December, European Gambling and Betting Association (EGBA) president and 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 that favored players being awarded refunds for gambling on non-locally licensed sites.