Austrian Claims Over Losses at Maltese Casinos Not Enforceable
A court in Malta has rejected two Austrian rulings that had ordered gambling sites with a Maltese licence to refund losses to Austrian players. The Austrian verdicts were issued because the casinos operated without an Austrian licence. Austria enforces a state monopoly on gambling, classifying all foreign casinos as illegal.
The decision reinforces Malta’s position as a key regulatory hub for online gambling and highlights the ongoing conflict between national gambling laws and EU-wide regulations.
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Legal Basis For the Maltese Ruling
The Austrian verdicts were issued because the casinos operated without an Austrian licence, which is required under Austria’s strict gambling monopoly system. Austria enforces a state monopoly on gambling, classifying all foreign casinos as illegal. This approach has led to multiple legal disputes with online gambling operators that hold licences in other EU countries, particularly Malta.
However, the Maltese court based its decision on Article 56 of the Treaty on the Functioning of the European Union (TFEU), which guarantees the freedom to provide services within the EU. According to the judge, the Austrian rulings were “contrary to Maltese public order” and therefore not enforceable. As a result, the gambling operators in question are not required to refund Austrian players.
Malta is one of the leading jurisdictions for online casinos. Many operators hold a licence from the highly regarded Malta Gaming Authority (MGA) and offer their services internationally. However, some EU countries oppose the free movement of goods and services by banning gambling sites licensed in Malta, despite the country being part of the EU.
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Controversial Bill 55
Countries such as the Netherlands, Germany, and Austria have taken legal action against Maltese casinos, arguing that they operate illegally. A common claim is that gambling losses should be considered invalid if incurred at a site deemed illegal under local laws.
To protect gambling operators from such lawsuits, Malta introduced Bill 55 on 16 June 2023. This law has sparked significant opposition across Europe.
Named after Malta’s interpretation of Article 56 TFEU in its national legislation, the controversial bill prevents foreign court rulings from being enforced against Maltese-licensed operators, effectively shielding them from legal claims.
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Loophole Use in New Zealand
Several online casinos operating under a Maltese licence also serve players in New Zealand. For example, SkyCity Casino’s online platform uses an MGA licence to reach New Zealand-based customers through what is known as a “loophole construction.” By establishing itself in Malta and obtaining a licence there, the casino can legally offer services to New Zealand players, as online gambling remains unregulated in the country and no local licences are issued. It is not illegal for New Zealanders aged 18 and over to gamble at offshore operators.
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