The ruling delivered on 27 February supported Malta-licensed operators conducting business in Austria’s market without a local license. The court found that previous Austrian judgments contradicted Maltese public policy.
Austria’s online gambling landscape is dominated by the monopoly operator Casinos Austria, with its Win2Day offering as the only licensed online product in the country.
The market, alongside Germany, has faced several high-profile player loss claims, where players have sought to reclaim losses from offshore operators deemed illegal within these markets.
Players gambling outside this monopoly have experienced court rulings either returning losses from illegal operators in the market or requiring them to pay back winnings to unlicensed operators. Many of these cases involve operators licensed in Malta.
## Malta Judgment
The recent Maltese ruling concerns a player who gambled in 2020 and lost €38,325 ($39,845/£31,653) through Malta-licensed operator European Lotto and Betting Limited, operating as Lottoland.
An Austrian court had previously ruled 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 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, such as online gambling, to be provided across EU states.
This article serves as a “primary source of community law” and is a “fundamental rule of the legal order” for both the EU and Malta.
Furthermore, Malta’s court contended that Austria’s federal law on games of chance and its online gaming monopoly contradict the TFEU.
Therefore, the Maltese court refused to enforce Austrian judgments, deeming them contrary to Maltese public policy.
Davinia Cutajar, legal partner at WH Partners acting on behalf of the MGA, commented that the decision significantly impacts the gambling industry, as it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.”
Cutajar added that Austria’s monopoly compliance with EU law has been questioned several times.
Numerous rulings from the Court of Justice of the European Union (CJEU) supported the stance 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 as it reinforced the operator’s previously expressed stance on the issue.
## Past Austrian Decisions
In 2021, when the Austrian Supreme Court ruled that foreign igaming brands were operating illegally in the country, player contracts were considered invalid, prompting players to seek refunds.
That decision affected Betclic Everest subsidiary Bet-at-home, which was ordered to pay €2.8m in player losses almost three years post 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. The courts concluded that both player and operator had breached Austrian gambling laws, thereby invalidating their contract.
Essentially, that ruling determined that both parties knowingly operated illegally, and the player was ordered to cover the operator’s court fees.
## Austrian Online Gambling Facing Liberalisation
This kind of player dispute involving Austria and Maltese-based operators could decrease in the forthcoming years as Austria is anticipated to move away from the country’s online casino monopoly.
Casinos Austria received a 15-year license and a monopoly on online gambling. However, its license is set to expire on 30 September 2027, and Austrian authorities are expected to begin the tendering process for new licenses this year.
Simon Priglinger-Simader, Austrian Betting and Gaming Association VP, expressed hope that Austrian online gambling could transition away from the monopoly system.
In December, European Gambling and Betting Association (EGBA) president and secretary general Maarten Haijer advocated 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 decided not to enforce Austrian court judgments that favored players being awarded refunds for gambling on sites that lacked local licensing.