### Summary of the Ruling
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 were against Maltese public policy.
Austria’s online gambling landscape is dominated by the monopoly operator Casinos Austria, with its Win2Day offering currently being the only licensed online product in the country.
The market, alongside Germany, has faced several high-profile player loss claims where players have attempted to recoup losses from offshore operators, deemed illegal within these markets.
Players gambling outside this monopoly have found themselves in court, receiving 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 relates to a player who gambled in 2020, losing €38,325 ($39,845/£31,653) via Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled that the betting party was entitled to recover their 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) provides for services (like online gambling) to be offered across EU states.
It is described as a “primary source of community law” and 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 contravenes the TFEU.
Therefore, the Maltese court has declined to enforce the Austrian judgments, stating they conflict with Maltese public policy.
Representing the MGA, Davinia Cutajar, 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 the Austrian monopoly’s compliance with EU law has been questioned on several occasions.
She mentioned in a post that multiple rulings from the Court of Justice of the European Union (CJEU) supported the view 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 that foreign igaming brands were operating illegally in the country, leading to player contracts being deemed invalid and players seeking to recoup their losses.
That 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 was ordered to return their winnings to an unlicensed operator in the market. The courts found that both the player and operator had violated Austrian gambling laws and that the contract between them was therefore invalid.
This decision essentially ruled that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court fees.
### Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators may decrease in the coming years, as Austria is likely on the cusp of ending the country’s online casino monopoly.
Casinos Austria was awarded a 15-year license and a monopoly on online gambling. However, its license is set to expire on 30 September 2027, with Austrian authorities expected to begin the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader recently expressed optimism that Austrian online gambling could transition away from the monopoly system.
This past December, European Gambling and Betting Association (EGBA) president and 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 that favored players being awarded refunds for gambling on sites that were not locally licensed.