The ruling, delivered on 27 February, supported operators licensed in Malta conducting business in Austria’s market without a local license. The court found that previous Austrian decisions were contrary to Maltese public policy.
Austria’s online gambling scene is dominated by the monopoly operator Casinos Austria, with its Win2Day platform being the only licensed online product in the nation.
Both the Austrian and German markets have witnessed high-profile cases where players attempted to reclaim losses from offshore operators deemed illegal in these regions.
Players engaging outside this monopoly have sometimes recovered losses from illegal operators, while others have had to return winnings to unlicensed operators. Many operators involved in these cases are licensed in Malta.
## Malta Judgment
This Maltese ruling involves a player who, in 2020, lost €38,325 ($39,845/£31,653) through European Lotto and Betting Limited, a Malta-licensed operator, doing business as Lottoland.
An Austrian court had earlier ruled that the player could reclaim their losses due to the market status of the operator, but the Malta Gambling Authority (MGA) brought the case to a local court.
Malta’s courts cited EU Article 56 in the Treaty on the Functioning of the European Union (TFEU), which allows services like online gambling to be offered across EU states, as a “primary source of community law” and “fundamental rule of the legal order” for the EU and Malta.
Malta’s court further contested that Austria’s federal law on gambling and its online gaming monopoly contravene the TFEU.
Thus, the Maltese court refused to uphold the Austrian rulings, citing their opposition to Maltese public policy.
Representing the MGA, Davinia Cutajar, a legal partner at WH Partners, highlighted the significant impact of the decision on the gambling sector, emphasizing the “autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar noted that the compliance of the Austrian monopoly with EU law has frequently been doubted.
She mentioned that several decisions from the Court of Justice of the European Union (CJEU) supported the stance that Austria’s monopoly breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU).
Nigel Birrell, group CEO of Lottoland, expressed approval of the landmark decision in Malta, reinforcing the operator’s previously held stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court declared foreign igaming brands to be operating illegally within the country, player contracts were rendered void and players sought to recover their losses.
That ruling impacted Betclic Everest’s subsidiary Bet-at-home, which was mandated to pay €2.8m in player losses nearly three years following its market withdrawal (in August 2024).
In another case last year, an Austrian customer was instructed to return their winnings to an unnamed unlicensed operator. The court determined both the player and operator had contravened Austrian gambling laws, invalidating their contract.
Essentially, the ruling asserted both parties knowingly engaged in illegal operations, with the player required to cover the operator’s legal costs.
## Austrian Online Gambling Facing Liberalization
These types of player disputes between Austria and Malta-based operators could diminish as Austria is on the brink of ending the country’s online casino monopoly.
Casinos Austria holds a 15-year license and monopoly on online gambling, which is set to expire on 30 September 2027. Austrian authorities are anticipated to commence the tender process for new licenses this year.
Austrian Betting and Gaming Association VP Simon Priglinger-Simader recently expressed optimism for a shift away from the monopoly system in Austrian online gambling.
In December, European Gambling and Betting Association (EGBA) secretary-general Maarten Haijer advocated for opening Austria’s online gambling market.
“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 not to enforce Austrian court decisions favoring players receiving refunds for gambling on unlicensed local sites.