Unleashing the Battle Over Online Gambling: Malta vs. EU
Malta's Court determines that Austrian gamblers are not entitled to compensation for gambling losses.
In the heart of Europe, a tussle is brewing between Malta and several EU countries, particularly Austria and Germany, over online gambling regulations. By Timm Schaffner, with insights from Angela Burke, published on March 4, 2025. Last updated on April 29, 2025.
The Great Divide: Malta vs. Austria/Germany
The disagreement erupted when Austrian players, who had lost money to Malta-licensed online casinos, demanded their cash back. According to Austrian courts, these unlicensed operators were operating illegally and thus obligated to return the funds. However, the Maltese Court of Appeal ruled on February 27, 2025, that such Austrian judgments couldn't be enforced in Malta.
Aprehending the Magnitude of the Maltese Ruling
This ruling's repercussions were underlined by a case involving an Austrian player who lost €38,325 at Lottoland, a Malta-licensed gambling provider. Despite an Austrian court ruling in the player's favor, the Maltese court refused to enforce the decision, citing legal arguments adjusted to their jurisdiction.
Litigation Funders in the Crossfire
In recent years, litigation funders have become a significant player in the gambling landscape. These entities approach players who've lost money, offering to assign their (alleged) claims against gambling providers in exchange for immediate payouts. However, the lengthy court battles may put them in a financial bind, as seen with the potential insolvency of litigation funder RightNow.
Europe's Court of Justice Weighs In
A case against the sports betting provider Tipico, handled by litigation funder Gamesright, is currently being reviewed by the European Court of Justice (ECJ). The decision made by the ECJ could set a significant precedent and provide a clearer picture for regulating cross-border online gambling within the EU. The ongoing legal disputes between Malta, Austria, and the EU will likely culminate in landmark rulings from the ECJ, determining the legality of Bill No. 55 and the applicability of the freedom to provide services in Austria's gambling sector.
A Preview of the EU Court Involvement
The ECJ is currently examining Case C-440/23, originating from a dispute between Malta and Germany. The case centers around the tension between national sovereignty in gambling regulation and the EU’s principles of free movement of services under the TFEU[1][2][3]. The ultimate ruling could dramatically shape online gambling laws across the European Union.
The Heart of the Matter - Main Legal Issues
- Origins of the case: The lawsuit commenced in 2021 when a German player sued a Malta-licensed operator for offering gambling services in Germany without proper local licensing.
- Key Legal Question: The ECJ is evaluating whether Germany’s Interstate Treaty on Gambling complied with EU law, particularly regarding restrictions on cross-border gambling services[1][3].
- Advocate General’s Opinion: Expected on July 10, 2025, this opinion will offer a preliminary assessment ahead of the court’s final verdict[1][3].
- What is the current dispute between Malta and several EU countries, particularly Austria and Germany, concerning? - Online gambling regulations.
- On February 27, 2025, the Maltese Court of Appeal ruled that Austrian judgments couldn't be enforced in Malta regarding online gambling matters.
- In 2025, the Maltese court refused to enforce a decision made by an Austrian court in a case involving an Austrian player who lost €38,325 at a Malta-licensed gambling provider, Lottoland.
- Litigation funders have entered the gambling landscape, often offering immediate payouts to players who've lost money in exchange for their (alleged) claims against gambling providers.
- A case against sports betting provider Tipico, handled by litigation funder Gamesright, is currently being reviewed by the European Court of Justice (ECJ). The ECJ's decision could set a significant precedent for regulating cross-border online gambling within the EU.
- The case between Malta and Germany that is currently being examined by the ECJ centers around the tension between national sovereignty in gambling regulation and the EU’s principles of free movement of services under the TFEU.
- The Advocate General’s Opinion in the Malta-Germany dispute, expected on July 10, 2025, will offer a preliminary assessment ahead of the court’s final verdict, potentially shaping future online gambling laws across the European Union.
