The ruling delivered on 27 February supported Malta-licensed operators that had conducted 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, along with Germany, has faced several high-profile player loss claims, where players have attempted to claim back losses from offshore operators, as they are deemed illegal in these markets.
Players gambling outside this monopoly have experienced court cases where they were returned losses from illegal operators in the market. Others have had to pay back winnings to unlicensed operators. In many cases, 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) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court previously 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 Gambling Authority (MGA).
Malta’s courts have 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 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 contradicts the TFEU.
Therefore, the Maltese court has refused to enforce the Austrian judgments, stating that they are contrary to Maltese public policy.
Speaking for the MGA, Davinia Cutajar, legal partner at WH Partners, mentioned the decision’s 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 multiple occasions.
She noted in a post on the firm’s website that numerous rulings from the Court of Justice of the European Union (CJEU) support the stance that Austria’s monopoly model violates Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, saying it reinforced the operator’s previously stated position on the matter.
## 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, and players sought 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 August 2024.
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator. The courts found that both the player and the operator had violated Austrian gambling laws, rendering the contract between them invalid.
This decision essentially ruled that both parties knowingly operated illegally, and the player was ordered 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 coming years, as Austria is likely on the verge of ending the country’s online casino monopoly.
Casinos Austria was given a 15-year license and a monopoly on online gambling. However, its license is set to expire on 30 September 2027. Austrian authorities are expected to begin 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 could move away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) president secretary-general Maarten Haijer urged 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 sites that were not locally licensed.