**The Ruling Backs Malta-Licensed Operators in Austria**
The decision delivered on 27 February favored Malta-licensed operators who had been active in Austria’s market without a local license. The court determined that previous Austrian judgments conflicted with Maltese public policy.
Austria’s online gambling market is dominated by the monopoly operator Casinos Austria, with its Win2Day service currently the sole licensed online product in the country. Similar to Germany, the market has faced high-profile player loss claims, where players seek to reclaim losses from offshore operators deemed illegal.
Players who engage with operators outside this monopoly have found themselves in court, either being refunded losses from illegal operators or having to return winnings to unlicensed operators. Many operators involved are licensed in Malta.
## Malta Judgment
The recent Maltese ruling concerns a player who gambled in 2020, losing €38,325 ($39,845/£31,653) with Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland. An Austrian court had previously decided that the bettor could recover these losses due to the operator’s illegality in the market, but the case was escalated 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, like online gambling, to be offered across EU states. This article serves as a “primary source of community law,” which is a “fundamental rule of the legal order” for both the EU and Malta.
The Maltese court further argued that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU. Consequently, the court refused to enforce the Austrian judgments, stating they violate Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, highlighted the decision’s significance for the gambling industry, as it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar pointed out that Austria’s monopoly’s compliance with EU law has been questioned multiple times. She noted various rulings from the Court of Justice of the European Union (CJEU) that supported the view that Austria’s monopoly model breaches Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed Malta’s landmark decision, which he said reinforced the operator’s stance on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled foreign igaming brands were operating illegally in the country, rendering player contracts invalid, prompting players to seek recovery of losses. This affected Betclic Everest subsidiary Bet-at-home, which had to pay €2.8m in player losses almost three years after leaving the market.
In another case last year, an Austrian customer was directed to return their winnings to an unnamed unlicensed operator in the market. The courts ruled that both player and operator violated Austrian gambling laws, thus nullifying their contract. Ultimately, the decision required the player to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
Such player disputes involving Austria and Maltese-based operators might decrease as Austria nears the end of its online casino monopoly. Casinos Austria was granted a 15-year license for online gambling, set to expire on 30 September 2027. Austrian authorities are expected to begin the tendering process for new licenses this year.
Simon Priglinger-Simader, Vice President of the Austrian Betting and Gaming Association, expressed optimism that Austria could move away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer called for the liberalization of Austria’s online gambling, stating that “multi-licensing works,” bringing gambling into the regulated market, protecting consumers, and generating significant tax revenue.
The Maltese Civil Court ruled that it will not enforce Austrian court judgments that favored players being awarded refunds for gambling on sites not locally licensed.