The ruling, delivered on 27 February, supported Malta-licensed operators that had operated in Austria’s market without a local license. The court found that previous Austrian judgments were against Maltese public policy.
Austria’s online gambling industry is led by monopoly operator Casinos Austria. Its Win2Day offering is the only licensed online product available in the country.
Like Germany, the market has faced numerous high-profile player loss claims, where players have attempted to reclaim losses from offshore operators deemed illegal in these regions.
Players who gamble outside this monopoly have sometimes been reimbursed losses from illegal operators in court, while others have had to return winnings to unlicensed operators. Often, the operators involved are licensed in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) with Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court previously ruled that the bettor could recover their losses due to the operator’s illegality in the market, but the case was appealed by the Malta Gambling Authority (MGA) to a local court.
Malta’s 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.
It serves as a “primary source of community law” and a “fundamental rule of the legal order” both for the EU and Malta.
The Maltese court also contended that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
Consequently, the Maltese court has refused to enforce Austrian judgments, declaring them contrary to Maltese public policy.
Representing 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 been questioned on several occasions.
She mentioned that numerous rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, praised the landmark decision in Malta, stating it confirmed the operator’s previously expressed stance on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, rendering player contracts invalid, and players sought to recover their losses.
That decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after it exited the market.
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed operator in the market. The courts concluded that both the player and operator breached Austrian gambling laws, rendering their contract invalid.
Essentially, that decision found both parties knowingly acted illegally, and the player was ordered to cover the operator’s court costs.
## Austrian Online Gambling Facing Liberalization
Such player disputes involving Austria and Maltese-based operators may decrease in the coming years as Austria is likely on the cusp of ending its online casino monopoly.
Casinos Austria holds a 15-year license and monopoly over online gambling. However, its license will expire on 30 September 2027. Austrian authorities are expected to commence the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader remarked earlier this month that he was “optimistic for the first time ever” that Austrian online gambling could shift away from the monopoly system.
Last 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 favoring players being awarded refunds for gambling on sites without local licenses.