On 27th February 2025, Malta’s Civil Court delivered its first rulings on the highly anticipated Austrian player claims. The Court ruled in favour of MGA Licensed operators, rejecting the recognition and enforcement of previous Austrian court judgements. These judgements had previously ruled that Malta-based operators provided gaming services illegally and should refund player losses.
A key argument was Austria’s gambling monopoly, operated by Casinos Austria via Win2Day, which Malta-based operators claimed violated Article 56 of the Treaty on the Functioning of the European Union (TFEU), ensuring the freedom to provide services. Article 56 governs the freedom to provide services within the EU and prohibits restrictions on the provision of services within the Union for entities established in a Member State. Another argument brought forward to the Maltese courts referenced Article 56A of the Maltese Gaming Act which was enshrined in law by Parliament through the approval of Bill 55. This enactment was aimed to strengthen Maltese safeguards with respect to legal action from other jurisdictions if any decision conflicts with the legality of the provision of gaming services from Malta by virtue of any licence or authorisation issued by the MGA.
In its decisions, Malta’s First Hall of the Civil Court accepted these arguments and refused to enforce the Austrian court’s judgement, stating that they are contrary to Maltese public policy.
What’s Next for Austria and Germany Player Claims
Despite the Austrian gambling monopoly’s compliance with EU law coming into question on several occasions, Austria delivered a judgement ruling that such monopoly does not violate Article 56, which caused many Austrian players to file claims in Austrian courts demanding a refund of all losses on the basis that MGA Licensed operations could not legally offer gaming services in Austria.
This position is now subject to change as the country’s online casino monopoly licence held by Casinos Austria is due to expire on 30 September 2027, with Austrian authorities expected to receive tenders for new licenses this year. Such a shift could reduce player claims, enhance consumer protection, and boost tax revenues, aligning Austria with other European markets.
Germany introduced a more open gambling framework in 2021 under the Interstate Treaty on Gambling. However, the country still faces significant challenges, such as addressing the black market and fostering fair competition. These issues remain critical in both Germany and Austria.
Broader Impact
While cross-border gambling regulation remains a complex matter within the EU, Malta’s ruling reaffirms its regulatory autonomy and could shape future jurisdictional disputes in the European gaming sector, particularly in countries without open licensing regimes. This decision also serves to strengthen Malta’s position as a gaming hub that safeguards both operators and players alike.
How ARQ Can Help
ARQ Group is well-positioned to assist gaming operators in navigating the complexities of cross-border regulations and ensuring compliance with both local and EU laws. Our team of experts provides comprehensive risk and compliance advisory services tailored to the unique needs of the gaming industry. For more information, please speak to Kris Baron – Partner – Regulatory and Advisory.
Kris Baron
Partner – Regulatory & Advisory
Kris Baron is the partner in charge of regulatory and compliance matters at ARQ and is responsible for i-gaming and e-commerce clients. He is a member of the Information Systems Audit and Control Association (USA), Fellow of the Association of Chartered Certified Accountants (UK) and a Fellow of the Malta Institute of Accountants.
