The ruling, delivered on 27 February, supported Malta-licensed operators that conducted business in Austria’s market without a local license. The court found that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling landscape is dominated by monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
The market, alongside Germany, has faced a number of high-profile player loss claims, where players have attempted to claim back losses from offshore operators deemed illegal within these markets.
Players who gamble outside this monopoly have found themselves in court, either having their losses returned from illegal operators in the market or being required to pay back winnings to unlicensed operators. Many of the operators involved in these cases hold licenses in Malta.
## Malta Judgement
The Maltese ruling this week involves a player who gambled in 2020, losing €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 the betting party could reclaim their losses due to the operator’s illegality in the market, but the case was brought to a local court by the Malta Gambling Authority (MGA).
Malta’s courts have contended that the EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows for services, like 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 violates the TFEU.
Therefore, the Maltese court refused to enforce the Austrian judgments, stating that they conflict with Maltese public policy.
Acting on behalf of the MGA, Davinia Cutajar, legal partner at WH Partners, said 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 pointed out that the Austrian monopoly’s compliance with EU law has been questioned on multiple occasions.
She noted that numerous rulings from the Court of Justice of the European Union (CJEU) supported the stance that Austria’s monopoly model violates 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 as it reinforced the operator’s previously expressed stance 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 voided, and players sought to recoup 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 its market withdrawal (in August 2024).
In another case last year, an Austrian customer was required to return their winnings to an unnamed unlicensed operator in the market. The courts found that both player and operator violated Austrian gambling laws, rendering the contract between them invalid.
Essentially, that decision concluded that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This type of player dispute involving Austria and Maltese-based operators could decrease in the coming years as Austria is likely on the brink of ending the country’s online casino monopoly.
Casinos Austria was awarded a 15-year license and a monopoly on online gambling. However, this 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 hope earlier this month for the potential move away from the monopoly system in Austrian online gambling.
In December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer urged Austria to open up online gambling.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer explained. “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 that were not locally licensed.