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 market is dominated by monopoly operator Casinos Austria. Its Win2Day offering is currently the sole licensed online product in the country.
The market, along with Germany, has experienced several high-profile player loss claims where players have attempted to reclaim losses from offshore operators deemed illegal in these markets.
Players who gamble outside this monopoly have sometimes found themselves in court, recovering losses from illegal operators in the market. Others have been required to repay winnings to unlicensed operators. In many cases, the operators involved in these disputes are licensed in Malta.
## Malta Judgement
The recent Maltese ruling pertains to a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, doing business as Lottoland.
An Austrian court had previously ruled that the player 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 Gambling 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 provided across EU states.
It serves as a “primary source of community law,” which is 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 contravenes the TFEU.
Consequently, the Maltese court has refused to enforce the Austrian judgments, asserting that they are against Maltese public policy.
Acting on behalf of the MGA, Davinia Cutajar, legal partner at WH Partners, stated 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 highlighted that the Austrian monopoly’s compliance with EU law has been questioned numerous times.
She mentioned that multiple rulings from the Court of Justice of the European Union (CJEU) supported the view that Austria’s monopoly model breaches 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, asserting that it reinforced the operator’s previously expressed position on the matter.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were illegally operating in the country, player contracts were deemed invalid, and players sought to recover 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 August 2024).
In another case last year, an Austrian customer was ordered to return their winnings to an unnamed unlicensed operator in the market. The courts found both the player and operator violated Austrian gambling laws, rendering the contract between them invalid.
Essentially, that decision concluded that both parties knowingly operated illegally, and the player was ordered to pay the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This type of player dispute involving Austria and Maltese-based operators could decrease in the coming years, as Austria is likely nearing the end of the country’s online casino monopoly.
Casinos Austria was granted a 15-year license and a monopoly on online gambling. However, its license is set to expire on 30 September 2027. Austrian authorities are expected to begin the tendering process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader expressed optimism earlier this month, suggesting that Austrian online gambling could potentially move away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) 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 stated. “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 being granted refunds for gambling on sites that were not locally licensed.