Austrian court rulings that penalized gambling operators for operating without a local license were overturned by the Malta court, which decided in favor of those operating under its jurisdiction. The decision, which was delivered on February 27, opposes Austria’s stringent gambling laws and upholds the independence of businesses with a Malta license. The court’s conclusion that earlier Austrian rulings were against Maltese public policy served to highlight the wider effects of EU trade regulations on cross-border services.
Austria’s Gambling Monopoly and Legal Disputes
Austria enforces a state-controlled online gambling system, with Casinos Austria holding the exclusive rights through its Win2Day platform. The market has seen numerous legal battles, with players attempting to reclaim losses from offshore operators deemed illegal under Austrian law. Some have successfully recovered their funds, while others were forced to return winnings obtained through unlicensed platforms. A significant number of these operators hold Malta’s gaming license, placing the issue at the center of international legal debates.
The recent case involved a player who lost $39,845 while betting on European Lotto and Betting Limited, operating as Lottoland. An Austrian court initially ruled in the player’s favor, citing the operator’s lack of a local license. However, Malta’s court rejected this ruling, emphasizing that such enforcement contradicts the principles of EU law.
The court’s decision referenced Article 56 of the Treaty on the Functioning of the European Union (TFEU), which allows service providers to operate freely across EU member states. It deemed Austria’s gambling monopoly incompatible with these regulations, reinforcing Malta’s stance that its licensed operators should not be penalized for serving Austrian players.
Legal expert Davinia Cutajar, representing the Malta Gaming Authority (MGA), highlighted the ruling’s significance, stating it “reinforces the autonomy of Maltese regulatory authorities and the jurisdiction of Maltese courts over gambling-related matters.” She also pointed out that Austria’s monopoly model has been challenged multiple times at the Court of Justice of the European Union (CJEU) for violating EU trade laws.
This ruling strengthens Malta’s position as a key jurisdiction for online gaming while raising further concerns about Austria’s restrictive gambling regulations within the EU framework.
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