The ruling, delivered on 27 February, supported Malta-licensed operators that had operated in Austria’s market without having a local license. The court decided that previous Austrian judgments were against Maltese public policy.
Austria’s online gambling market is dominated by the monopoly operator Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
The market, along with Germany, has encountered several high-profile claims where players have attempted to reclaim losses from offshore operators, deemed illegal within these markets.
Players who gamble outside this monopoly have often been involved in court cases, sometimes receiving their losses back from illegal operators, while others have been required to return winnings to unlicensed operators. Many of these operators involved in such cases are licensed in Malta.
## Malta Judgment
The Maltese ruling this week relates 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 had previously ruled that the player could recover their losses due to the operator’s illegality in the market. However, the Malta Gambling Authority (MGA) brought the case to a local court in Malta.
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) provides for services, like online gambling, to be offered across EU states.
This is considered a “primary source of community law” and 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 contradicts the TFEU.
Consequently, the Maltese court refused to enforce the Austrian judgments, stating they conflict with Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated that the decision has significant consequences 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 compliance of Austria’s monopoly with EU law has been questioned multiple times.
She mentioned on the firm’s website that numerous rulings from the Court of Justice of the European Union (CJEU) supported the argument 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, affirming it bolstered 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, which led players to seek to recoup their losses.
That decision impacted 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 in the market. The courts concluded that both the player and operator breached Austrian gambling laws, making the contract between them invalid.
This ruling essentially determined that both parties knowingly operated illegally, and the player was required to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators could decrease in the coming years as Austria seems poised to end its online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, but this license is set to expire on 30 September 2027. Austrian authorities are expected to initiate the tendering process for new licenses this year.
Simon Priglinger-Simader, VP of the Austrian Betting and Gaming Association, expressed optimism earlier this month that Austrian online gambling might move away from the monopoly system.
In 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 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 that were in favor of players receiving refunds for gambling on sites lacking local licenses.