MALTA COURT REJECTS ENFORCEMENT OF AUSTRIAN PLAYER LOSS RULINGS
The Maltese Civil Court has determined that it will not uphold Austrian court decisions ordering refunds to players who gambled on platforms without local licences.
The verdict, issued on 27 February, reinforces the stance of Malta-licensed operators conducting business in Austria without Austrian authorisation, citing conflicts with Maltese public policy.
Austria’s gambling landscape is tightly controlled by a monopoly system, with Casinos Austria operating the country’s only legal online platform, Win2Day.
As a result, Austrian courts have frequently ruled in favor of players attempting to recover gambling losses from offshore operators deemed illegal under Austrian law. Some players have successfully retrieved lost wagers, while others have had to return winnings obtained through unlicensed platforms.
Many of these operators hold Malta licences, sparking legal conflicts between the two jurisdictions.
The recent case involved a gambler who lost €38,325 in 2020 while betting through European Lotto and Betting Limited, better known as Lottoland. An Austrian court initially ruled that the losses should be refunded, but Malta’s regulatory authorities challenged the decision in local courts.
Malta’s legal argument hinges on Article 56 of the Treaty on the Functioning of the European Union (TFEU), which allows service providers—including online gambling operators—to operate across EU member states.
The court asserted that this provision is a cornerstone of both EU and Maltese law, contradicting Austria’s restrictive gambling policies. Consequently, Maltese judges deemed the Austrian rulings unenforceable under Maltese law.
Representing the Malta Gaming Authority (MGA), Davinia Cutajar of WH Partners underscored the broader significance of the ruling, emphasizing Malta’s legal autonomy in regulating its gambling sector.
She also highlighted past scrutiny of Austria’s gambling monopoly within EU legal frameworks. The Court of Justice of the European Union (CJEU) has previously found Austria’s restrictive model to be at odds with EU competition rules, strengthening Malta’s argument against enforcement.
Lottoland’s CEO, Nigel Birrell, welcomed the decision, reaffirming the company’s long-standing position that Austrian judgments should not be imposed on Malta-based operators.
Austria’s stringent stance on foreign operators has led to multiple legal disputes. In 2021, the Austrian Supreme Court invalidated player contracts with foreign gaming brands, ruling them unlawful.
This forced operators like Bet-at-home to refund millions in player losses. The same legal framework has also resulted in cases where players were compelled to return winnings to unlicensed operators, under the reasoning that both parties knowingly engaged in unlawful gambling activities.
However, Austria’s gambling market may soon see fundamental changes. The country’s exclusive online gaming licence, held by Casinos Austria, is set to expire in 2027.
Discussions about opening the market to competition have gained momentum, with industry figures expressing optimism about regulatory reforms.
Advocates for liberalization argue that a multi-licensing system would improve consumer protection and boost tax revenue, aligning Austria with broader European trends.
As the debate over Austria’s gambling framework continues, Malta’s recent ruling signals a firm commitment to its own regulatory autonomy, potentially shaping future jurisdictional conflicts within the European gaming industry.
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