The ruling, delivered on 27 February, supported Malta-licensed operators that had been conducting 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 market is dominated by the monopoly operator Casinos Austria. Its Win2Day platform is currently the only licensed online product available in the country.
The market has faced numerous high-profile player loss claims, where players have attempted to reclaim losses from offshore operators deemed illegal within these markets.
Players who gamble outside this monopoly have occasionally managed to recover losses from illegal operators through the court, while others have had to return winnings to unlicensed operators. Many of the operators involved are licensed in Malta.
## Malta Judgment
The recent Maltese ruling concerns 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 permitted the betting party to 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 offered across EU states.
It acts as a “primary source of community law” and 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 violate the TFEU.
Therefore, the Maltese court refused to enforce the Austrian judgments, stating that they conflict with Maltese public policy.
Acting on behalf of the MGA, Davinia Cutajar, a legal partner at WH Partners, noted 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 also highlighted that the compliance of the Austrian monopoly with EU law has been questioned multiple times.
She noted that numerous rulings from the Court of Justice of the European Union (CJEU) have supported the view 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 expressed 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 declared invalid, and players sought to recoup their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after its market withdrawal (in August 2024).
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 the player and operator had violated Austrian gambling laws and that the contract between them was therefore 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
This type of player dispute involving Austria and Maltese-based operators could be reduced in the coming years as Austria is likely on the verge of ending its 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. 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 that Austrian online gambling could shift away from the monopoly system.
This past December, European Gambling and Betting Association (EGBA) president 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 being awarded refunds for gambling on sites not locally licensed.