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 conflicted with Maltese public policy.
Austria’s online gambling market is largely controlled by the monopoly operator Casinos Austria, with its Win2Day offering currently the only licensed online product in the country.
Alongside Germany, the market has faced numerous high-profile player loss claims, where players have sought to recover losses from offshore operators, deemed illegal in these markets.
Players gambling outside this monopoly have found themselves in court, either reclaiming losses from illegal operators or returning winnings to unlicensed operators. Many of these operators involved in such cases hold licenses in Malta.
## Malta Judgment
The Maltese ruling this week pertains to a player who gambled in 2020, losing €38,325 ($39,845/£31,653) with Malta-licensed operator European Lotto and Betting Limited, trading as Lottoland.
An Austrian court had earlier decided that the betting party was entitled to recover their losses due to the operator’s illegality in the market. However, the case was presented 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) permits services like online gambling to be offered 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 contended that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
Therefore, the Maltese court has declined to enforce the Austrian judgments, asserting that they oppose Maltese public policy.
Davinia Cutajar, legal partner at WH Partners, representing the MGA, stated that the decision holds 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 further pointed out that the compliance of Austria’s monopoly with EU law has been questioned on numerous occasions.
She noted that several rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model breaches Article 56 of the TFEU.
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, indicating it bolstered the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court determined that foreign igaming brands were operating illegally in the country, player contracts were invalidated, allowing players to seek reimbursement for their losses.
That decision affected Betclic Everest subsidiary Bet-at-home, which was instructed to pay €2.8m in player losses nearly three years after exiting the market in August 2024.
In another case last year, an Austrian customer was obliged to return their winnings to an unnamed unlicensed operator in the market. The courts concluded that both the player and operator had violated Austrian gambling laws and that their contract was, therefore, invalid.
Essentially, that decision held that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
The sort of player disputes involving Austria and Maltese-based operators could diminish in the future as Austria appears to be moving towards liberalizing its online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling, but this license is set to expire on 30 September 2027. Austrian authorities are anticipated to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism about the potential for Austrian online gambling to transition away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president secretary general Maarten Haijer called for Austria to open up online gambling, stating, “The evidence from across Europe is clear and compelling: multi-licensing works. 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 receiving refunds for gambling on sites that were not locally licensed.