The ruling, delivered on 27 February, supported Malta-licensed operators that had conducted business in Austria’s market without a local license. The court determined that previous Austrian judgments contradicted Maltese public policy.
Austria’s online gambling scene is dominated by the monopoly operator Casinos Austria, whose Win2Day offering is the only licensed online product available in the country.
The market, along with Germany, has seen several high-profile claims where players have attempted to recover losses from offshore operators considered illegal within these markets.
Players who gamble outside this monopoly often find themselves in court, either getting their losses returned from illegal operators or having to pay back winnings to unlicensed operators. Many of the operators involved in these cases are licensed in Malta.
## Malta Judgement
The recent Maltese ruling 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, also known as Lottoland.
An Austrian court had previously ruled that the bettor could reclaim their losses due to the operator’s illegality in the market. However, 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 for services, such as online gambling, to be provided across EU states.
It serves as a “primary source of community law,” regarded as 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 violates the TFEU.
As a result, the Maltese court has refused to enforce the Austrian judgments, declaring them contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated that the decision has substantial 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 Austrian monopoly’s compliance with EU law has been questioned several times.
In a statement on the firm’s website, she noted that numerous rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model contravenes Article 56 of the TFEU.
In a statement to iGB, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, saying it reinforced the operator’s previously expressed stance on the matter.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court found that foreign igaming brands were operating illegally in the country, player contracts were ruled invalid, and players sought to reclaim losses.
This decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after withdrawing from the market (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 ruled that both the player and operator violated Austrian gambling laws, making their contract invalid.
Essentially, that ruling determined that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
These types of player disputes involving Austria and Maltese-based operators may decrease as Austria is likely on the verge of ending its online casino monopoly.
Casinos Austria was granted a 15-year license and monopoly on online gambling. However, this license is 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 earlier this month that Austrian online gambling could move away from the monopoly system.
This past 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 favoring players being awarded refunds for gambling on sites not locally licensed.