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 contrary to Maltese public policy.
Austria’s online gambling scene is dominated by the monopoly operator Casinos Austria. Its Win2Day offering is currently the only licensed online product in the country.
Alongside Germany, the market has faced several high-profile player loss claims in which players have attempted to reclaim losses from offshore operators, as these activities are considered illegal within these markets.
Players who gamble outside this monopoly have found themselves in court receiving their losses back from illegal operators, while others have been required to return winnings to unlicensed operators. Frequently, the operators involved in these cases are licensed in Malta.
## Malta Judgment
The Maltese ruling this week pertains to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through the Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously decided that the bettor could 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 have argued that EU Article 56 in the Treaty on the Functioning of the European Union (TFEU) provides for services (like online gambling) to be accessible across EU states.
It acts 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 contradict the TFEU.
As a result, the Maltese court has refused to enforce the Austrian judgments, stating that they contradict Maltese public policy.
Representing the MGA, Davinia Cutajar, legal partner at WH Partners, indicated 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 noted that Austria’s monopoly compliance with EU law has been questioned on multiple occasions.
She mentioned in a post on the firm’s website that numerous rulings from the Court of Justice of the European Union (CJEU) support the position that Austria’s monopoly model violates Article 56 of the Treaty on the Functioning of the European Union (TFEU).
In a statement, Nigel Birrell, group CEO of Lottoland, welcomed the landmark decision in Malta, saying it reinforced the operator’s previously expressed stance on the matter.
## Past Austrian Decisions
In 2021, the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, declaring player contracts invalid, and allowing players to recoup their losses.
That decision impacted Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years after its market exit (in August 2024).
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator. The courts determined that both the player and the operator had violated Austrian gambling laws, rendering the contract between them invalid.
This decision essentially ruled that both parties knowingly operated illegally, resulting in the player being ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalization
These types of player disputes involving Austria and Maltese-based operators might decrease in the coming years as Austria is likely on the brink of ending the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling. However, this license is set to expire on 30 September 2027. Austrian authorities are expected to initiate the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month, stating that he was “optimistic for the first time ever” about the possibility of Austrian online gambling moving away from the monopoly system.
Last 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 not to enforce Austrian court judgments that favored players receiving refunds for gambling on sites without local licenses.