The ruling, delivered on 27 February, supported Malta-licensed operators conducting business in Austria’s market without a local license. The court determined that prior Austrian judgments contradicted Maltese public policy.
Austria’s online gambling landscape is primarily controlled by the monopoly operator Casinos Austria. Its Win2Day is currently the sole licensed online product available in the country.
This market, along with Germany, has encountered several prominent player loss claims. In these cases, players have sought to reclaim losses from offshore operators, as these operators are considered illegal in these markets.
Players gambling outside this monopoly have ended up in court, receiving refunds for losses from illegal operators, while others have had to return winnings to unlicensed operators. Many of the operators involved in these legal cases hold licenses in Malta.
## Malta Judgment
The recent Maltese ruling pertains to a player who gambled in 2020 and lost €38,325 via the Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously determined that the betting party could recover 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 have 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” and 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 contradict the TFEU.
Therefore, the Maltese court has refused to enforce the Austrian judgments, declaring them against Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, stated 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 noted that Austria’s monopoly’s compliance with EU law has been questioned repeatedly.
She mentioned that several rulings from the Court of Justice of the European Union (CJEU) support the position that Austria’s monopoly model violates Article 56 of the TFEU.
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, the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, rendering player contracts invalid and leading players to seek reimbursement for their losses.
This decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8 million in player losses nearly three years after its market withdrawal.
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator. The courts found both player and operator had violated Austrian gambling laws, rendering the contract between them invalid.
This decision essentially ruled that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
Such player disputes involving Austria and Maltese-based operators may lessen 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. However, its license is set to expire on 30 September 2027. Austrian authorities are expected to commence 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 advocated for Austria to open its online gambling market.
“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 awarded refunds for gambling on sites not locally licensed.