The ruling, delivered on 27 February, supported Malta-licensed operators that had 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 the only licensed online product in the country.
The market, alongside Germany, has seen several high-profile player loss claims, with players trying to reclaim losses from offshore operators, which are deemed illegal in these markets.
Players gambling outside this monopoly have sometimes successfully reclaimed losses from illegal operators, while others were ordered to repay winnings to unlicensed operators. Many operators involved in these cases are licensed in Malta.
## Malta Judgment
The Maltese ruling this week concerned a player who gambled in 2020, losing €38,325 ($39,845/£31,653) via Malta-licensed European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously allowed the betting party to recover these losses due to the operator’s illegality in the market, but the case was brought to a local court by the Malta Gaming 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. It serves as a “primary source of community law,” 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. Accordingly, the Maltese court refused to enforce the Austrian judgments, stating they contradict Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, stated 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 also noted that the Austrian monopoly’s compliance with EU law has been questioned multiple times. She mentioned on the firm’s website that numerous Court of Justice of the European Union (CJEU) rulings support the position that Austria’s monopoly model violates Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, as he said it reinforced 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, invalidating player contracts and prompting players to seek loss recoups.
That 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 both the player and operator violated Austrian gambling laws, rendering the contract invalid. This decision ruled that both parties knowingly operated illegally, ordering the player to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
These types of player disputes involving Austria and Malta-based operators may decrease in the coming years as Austria is likely to end the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, set to expire on 30 September 2027. Austrian authorities are expected to start the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism that Austrian online gambling could 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 said. “It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue.”
The Maltese Civil Court has ruled it will not enforce Austrian court judgments favoring players awarded refunds for gambling on sites that were not locally licensed.