The ruling, delivered on 27 February, supported Malta-licensed operators that had conducted 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 scene is monopolized by Casinos Austria, with its Win2Day offering being the sole licensed online product in the nation.
The market, along with Germany, has experienced several 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 found themselves in court recovering losses from illegal operators, while others have had to repay winnings to unlicensed operators. Many of these operators involved in the cases are licensed in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who, in 2020, lost €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that this player could recover their losses due to the operator’s illegality in the market. However, the case was brought to a local court by the Malta Gambling Authority (MGA).
Malta’s 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.
This acts as a “primary source of community law,” being 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.
Consequently, the Maltese court refused to enforce the Austrian judgments, asserting that they are contrary to Maltese public policy.
Acting on behalf of 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 highlighted that the compliance of Austria’s monopoly with EU law has often been questioned.
She noted in a post on the firm’s website that multiple 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, reinforcing 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, rendering player contracts invalid, and players sought to recuperate their losses.
This decision affected 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 player and 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 Liberalization
Such player disputes involving Austria and Maltese-based operators may diminish in the coming years as Austria is likely poised to end the country’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 start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month about the potential shift from the monopoly system in Austrian online gambling.
This past December, European Gambling and Betting Association (EGBA) secretary-general Maarten Haijer urged 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 it will not enforce Austrian court judgments favoring players seeking refunds for gambling on sites without local licenses.