The ruling, delivered on 27 February, supported Malta-licensed operators that had been operating in Austria’s market without a local license. The court concluded that previous Austrian judgments were contrary to Maltese public policy.
Austria’s online gambling landscape is dominated by the monopoly operator Casinos Austria. Its Win2Day service is currently the only licensed online product in the country.
Alongside Germany, Austria’s market has seen several high-profile player loss claims, where players tried to recover losses from offshore operators since they are considered illegal in these markets.
Players gambling outside this monopoly have sometimes ended up in court, retrieving losses from illegal operators, while others have had to repay winnings to unlicensed operators. Many of these operators are licensed in Malta.
## Malta Judgment
The Maltese ruling this week involves a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that the betting party could recover their losses due to the operator’s illegality in the market, but the Malta Gambling Authority (MGA) brought the case to a local court.
Malta’s courts argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows services (like 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 argued that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
Thus, the Maltese court refused to enforce the Austrian judgments, saying they are contrary to Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, stated that 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 indicated that the compliance of Austria’s monopoly with EU law has been questioned several times.
She mentioned that numerous rulings from the Court of Justice of the European Union (CJEU) support the view 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, affirming it reinforced the operator’s prior stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, player contracts were invalidated, and players sought to recoup their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses nearly three years after departing the market.
In another case last year, an Austrian customer was instructed to return their winnings to an unnamed unlicensed operator. The courts found that both the player and operator violated Austrian gambling laws, rendering their contract invalid.
Essentially, that decision ruled that both parties knowingly operated illegally, and the player was charged with paying the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators may diminish as Austria is expected to end its online casino monopoly in the coming years.
Casinos Austria received a 15-year license and monopoly on online gambling, but its license expires on 30 September 2027. Austrian authorities are set to begin the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism that Austrian online gambling might shift away from the monopoly system.
This past 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 that it will not enforce Austrian court judgments favoring players awarded refunds for gambling on sites not locally licensed.