**Malta Court Rules in Favor of Malta-Licensed Operators**
The ruling, delivered on 27 February, supported Malta-licensed operators conducting business in Austria’s market without a local license. The court determined that previous Austrian judgments were against Maltese public policy.
Austria’s online gambling scene is dominated by the monopoly operator Casinos Austria. Its Win2Day service is the only licensed online product in the country.
The market, along with Germany, has seen several high-profile claims from players attempting to recover losses from offshore operators deemed illegal in these regions. Some players have managed to reclaim losses from these operators, while others have had to return winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The recent Maltese ruling involves a player who gambled in 2020, losing €38,325 ($39,845/£31,653) with Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland. An Austrian court had allowed the player to recover losses due to the operator’s illegality in Austria, but the Malta Gambling Authority (MGA) brought the case to a local court.
Maltese 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. This article is considered a “primary source of community law” and a “fundamental rule of the legal order” for both the EU and Malta.
Furthermore, Malta’s court argued that Austria’s federal law on games of chance and its online gaming monopoly are contrary to the TFEU. Consequently, the Maltese court refused to enforce Austrian judgments, deeming them against Maltese public policy.
Davinia Cutajar, acting on behalf of the MGA and a legal partner at WH Partners, stated 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 noted that the compliance of Austria’s monopoly with EU law has often been questioned. She highlighted numerous Court of Justice of the European Union (CJEU) rulings supporting the position that Austria’s monopoly model violates Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed this landmark Malta decision, stating that it reinforced the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, declaring player contracts invalid, prompting players to seek recoupment of their losses.
This decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8 million in player losses nearly three years after withdrawing from the market.
In another case last year, an Austrian customer was ordered to return winnings to an unnamed unlicensed operator. The courts found both the player and operator in violation of Austrian gambling laws, rendering their contract invalid. As a consequence, the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
The nature of player disputes involving Austria and Malta-licensed operators may diminish as Austria appears poised to end its online casino monopoly. Casinos Austria currently holds a 15-year license and monopoly on online gambling, set to expire on 30 September 2027. Austrian authorities are expected to begin the tendering process for new licenses this year.
Simon Priglinger-Simader, Vice President of the Austrian Betting and Gaming Association, expressed optimism that Austrian online gambling could transition away from the monopoly system.
In December, Maarten Haijer, Secretary General of the European Gambling and Betting Association (EGBA), urged Austria to open up online gambling. He remarked, “The evidence from across Europe is clear and compelling: multi-licensing works.” He added that 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.