Malta Court Overturns Austrian Gambling Ruling
The Essentials at a Glance
A Maltese court has overturned a decision from Austria that penalized gambling providers without an Austrian license. The ruling strengthens Malta’s position as a gambling hub and questions the compatibility of Austria’s gambling monopoly with EU law.
Background: Austria’s Gambling Monopoly
In Austria, the state controls online gambling. The exclusive license is held by Casinos Austria, which operates through the Win2Day platform. International providers without an Austrian license are considered illegal. Players often attempt to reclaim losses from these providers, while winnings from unlicensed platforms must sometimes be returned.
The Case: Player Claims Losses Back
A player lost 39,845 USD betting on European Lotto and Betting Limited, known as Lottoland. An Austrian court ruled in favor of the player, as Lottoland did not have an Austrian license. However, the Maltese court overturned this ruling, stating that it violated Malta’s public policy.
EU Law and the Maltese Court’s Decision
The court referred to Article 56 of the Treaty on the Functioning of the European Union (TFEU). This article guarantees the freedom to provide services within the EU. The ruling argues that Austria’s gambling monopoly is not compatible with these regulations.
Impact on the Gambling Market
Davinia Cutajar, legal representative of the Malta Gaming Authority (MGA), emphasized that the ruling strengthens the independence of Malta’s regulatory authorities. It was also noted that Austria’s monopoly has been repeatedly challenged before the European Court of Justice (ECJ) for violations of EU trade laws.
Our Assessment
The ruling highlights the ongoing tensions between national gambling regulations and EU law. For players in Austria, the legal situation remains complex as national courts continue to act against foreign providers. At the same time, Malta’s decision strengthens the position of gambling companies licensed there. The question of how national monopolies align with EU law remains a key issue in the gambling industry.
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