The ruling, delivered on 27 February, supported Malta-licensed operators conducting business in Austria’s market without a local license. The court declared that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling landscape is dominated by the monopoly operator Casinos Austria, with its Win2Day offering currently being the only licensed online product in the country.
The market, alongside 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, with some being awarded their losses back from illegal operators in the market, while others have had to repay winnings to unlicensed operators. Many of the operators implicated in these cases are licensed in Malta.
## Malta Judgement
The Maltese ruling this week pertains to 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 ruled that the bettor could recover their losses due to the illegality of the operator in the market, but 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 services (like online gambling) to be offered across EU states.
It acts 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 contended that Austria’s federal law on games of chance and its online gaming monopoly contravene the TFEU.
As such, the Maltese court refused to enforce the Austrian judgments, stating that they are contrary to Maltese public policy.
Acting on behalf of the MGA, Davinia Cutajar, legal partner at WH Partners, emphasized that the decision significantly impacts the gambling industry as it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar further remarked that the compliance of the Austrian monopoly with EU law has been questioned multiple times.
She mentioned that several rulings from the Court of Justice of the European Union (CJEU) supported the viewpoint that Austria’s monopoly model contravenes Article 56 of the Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, stating 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 nullified, and players sought to recoup their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was compelled to pay €2.8m 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 in the market. The courts concluded that both the player and operator had violated Austrian gambling laws, rendering the contract between them invalid.
That decision essentially ruled that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators could decline in the coming years as Austria is likely nearing the end of the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling. However, its license is due to expire on 30 September 2027. Austrian authorities are expected to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism that Austrian online gambling could transition away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president 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 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 that favored players being awarded refunds for gambling on sites that were not locally licensed.