The ruling, delivered on 27 February, supported Malta-licensed operators that conducted business in Austria’s market without a local license. The court determined that previous Austrian judgments conflicted with Maltese public policy.
Austria’s online gambling landscape is led by monopoly operator Casinos Austria. Its Win2Day service is currently the sole licensed online product in the country.
The market, along with Germany, has experienced several high-profile player loss claims, where players have attempted to reclaim losses from offshore operators, as these are considered illegal in these markets.
Players gambling outside this monopoly have sometimes found themselves in court, being refunded losses from illegal operators in the market, while others have had to pay back winnings to unlicensed operators. Frequently, the operators involved in these cases are licensed in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who gambled in 2020, losing €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, which operates as Lottoland.
An Austrian court had initially ruled that the player could recover their losses due to the operator’s illegality in the market, but the case was taken to a local court by the Malta Gambling Authority (MGA).
Malta’s courts have contended that Article 56 of the Treaty on the Functioning of the European Union (TFEU) allows for services, such as online gambling, to be provided across EU states.
It serves 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 argued that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
Therefore, the Maltese court has refused to enforce the Austrian judgments, claiming they conflict with Maltese public policy.
Acting for the MGA, Davinia Cutajar, 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 also noted that Austria’s monopoly’s compliance with EU law has been questioned multiple times.
She highlighted that numerous rulings from the Court of Justice of the European Union (CJEU) backed the view that Austria’s monopoly model breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU).
Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, noting that it reinforced the operator’s previously expressed position.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, resulting in player contracts being declared invalid and players seeking to recoup their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8 million in player losses nearly three years after its market exit 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 player and operator had violated Austrian gambling laws, rendering the contract between them invalid.
Essentially, that decision determined that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
These types of player disputes involving Austria and Maltese-based operators may decrease in the coming years, as Austria is likely on the verge of ending the nation’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. Austrian authorities are anticipated to commence 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 finally shift away from the monopoly system.
Last December, European Gambling and Betting Association (EGBA) president and 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 decided not to enforce Austrian court judgments that favored players being awarded refunds for gambling on sites that were not locally licensed.