The ruling, delivered on 27 February, supported Malta-licensed operators conducting business in Austria’s market without a local licence. The court decided previous Austrian judgments violated Maltese public policy.
Austria’s online gambling scene is dominated by the monopoly operator Casinos Austria, with its Win2Day offering being the only licensed online product in the country.
Alongside Germany, the market has experienced several high-profile player loss claims, where players attempted to recover losses from offshore operators deemed illegal within these markets.
Players who gamble outside this monopoly have been in court, reclaiming losses from illegal operators, while others have been made to return winnings to unlicensed operators. Often, these operators are licensed in Malta.
## Malta Judgement
This week’s Maltese ruling involves a player who gambled in 2020, losing €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had earlier ruled 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 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 acts as a “primary source of community law,” being 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 contradicts the TFEU.
Thus, the Maltese court refused to enforce the Austrian judgments, asserting they contradict Maltese public policy.
Davinia Cutajar, legal partner at WH Partners, representing the MGA, 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 highlighted that the Austrian monopoly’s compliance with EU law has been questioned repeatedly.
She indicated that numerous rulings from the Court of Justice of the European Union (CJEU) supported the position that Austria’s monopoly model violates Article 56 of the Treaty on the Functioning of the European Union (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 foreign igaming brands were operating illegally in the country, deeming player contracts invalid and allowing players to recoup their losses.
This 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 another case last year, an Austrian customer had to return their winnings to an unnamed unlicensed operator. The courts found both player and operator violated Austrian gambling laws, rendering their contract invalid.
That decision ruled that both parties knowingly operated illegally, and the player had to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
These player disputes involving Austria and Maltese-based operators could diminish in the coming years as Austria is likely on the verge of ending the country’s online casino monopoly.
Casinos Austria holds a 15-year licence and monopoly on online gambling, expiring on 30 September 2027. Austrian authorities are expected to start the tendering process for new licences this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism for Austria’s online gambling to evolve from the monopoly system.
European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer highlighted the benefits of multi-licensing, including bringing gambling activity into the regulated market, protecting consumers, and generating significant tax revenue.
The Maltese Civil Court has ruled not to enforce Austrian court judgments favoring players receiving refunds for gambling on sites without local licences.