**February 27th Ruling: Support for Malta-Licensed Operators in Austria**
The ruling delivered on February 27 favored Malta-licensed operators who had conducted business in Austria without a local license. The court found prior Austrian judgments to be contrary to Maltese public policy.
Austria’s online gambling market is primarily controlled by the monopoly operator Casinos Austria, with its Win2Day being the only licensed online product in the country.
Both Austria and Germany have experienced several high-profile claims from players attempting to recover losses from offshore operators, considering them illegal within these markets.
Players gambling outside the monopoly sometimes end up in court, where they have had their losses returned from illegal operators, or they have had to pay back their winnings to unlicensed operators. In numerous cases, the operators involved were licensed in Malta.
## Malta Judgement
The recent Maltese ruling concerned a player who, in 2020, lost €38,325 ($39,845/£31,653) through Malta-licensed European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that the player could recover losses due to the operator’s illegal status in the market, 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 for services, such as online gambling, to be provided across EU states. It acts as a “primary source of community law” and a “fundamental rule of the legal order” for the EU and Malta.
The court also contended that Austria’s federal law on games of chance and its online gaming monopoly contradicts the TFEU. Consequently, the Maltese court refused to enforce the Austrian judgments, declaring them contrary to Maltese public policy.
Davinia Cutajar, legal partner at WH Partners, representing the MGA, stated that the decision has significant implications for the gambling industry, reinforcing Maltese regulatory authorities’ autonomy and Maltese courts’ jurisdiction over gambling-related matters.
Cutajar noted that the Austrian 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) supported the stance that Austria’s monopoly model breaches Article 56 of the TFEU.
Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, as it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands operated illegally in the country, nullifying player contracts and prompting players to reclaim losses.
This decision affected Betclic Everest subsidiary Bet-at-home, with the brand ordered to pay €2.8m in player losses almost three years after leaving the market (in August 2024).
In a separate case last year, an Austrian gambler was ordered to return winnings to an unnamed unlicensed operator. The court determined both the player and operator violated Austrian gambling laws, invalidating their contract.
Essentially, the ruling found both parties knowingly acted illegally, with the player ordered to cover the operator’s court fees.
## Potential Liberalization of Austrian Online Gambling
Future disputes involving Austrian and Maltese-based operators might decrease as Austria could end its online casino monopoly.
Casinos Austria received a 15-year license and online gambling monopoly, which is set to expire on September 30, 2027. Austrian authorities are expected to start the tender process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism about transitioning from the monopoly system.
In December, European Gambling and Betting Association (EGBA) secretary general Maarten Haijer urged Austria to open its online gambling market.
“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 against enforcing Austrian court judgments that favored players receiving refunds for gambling on sites lacking local licenses.