Austrian Supreme Court Confirms Gambling Operator's Right to Reclaim Paid-Out Winnings

The Austrian Supreme Court has issued an important ruling that could significantly impact gambling operators operating without a local license. In June 2024, the court decided that gambling operators without an Austrian license have the right to reclaim paid-out winnings from players if such games are deemed illegal.

This decision stems from a case where a player won €29,090 at a Malta-licensed online casino and attempted to keep the winnings. The casino operator, holding a Maltese license, filed a lawsuit demanding the return of €7,152, citing the invalidity of all contracts formed under illegal activities.

The appellate court supported this claim, emphasizing that Austrian gambling law is designed to protect public interests, and therefore any contracts related to unlicensed gambling should be considered null and void. The Supreme Court affirmed this decision, stating that both parties—the operator and the player—can demand the return of funds, as participation in illegal games contradicts public interests and must be minimized.

This decision highlights the strict approach of Austrian authorities to gambling regulation and increases control over operators who attempt to bypass local laws by offering their services online. As a result, players involved in illegal gambling may find themselves in a situation where their winnings are confiscated, and they face serious legal consequences. Moreover, this ruling could set a dangerous precedent, allowing operators to refuse to pay players their rightful winnings by citing the invalidity of the contract.

The case also raises important questions about the effectiveness of player protection measures and how they can be balanced with the interests of the state and licensed operators. This matter could lead to a significant reevaluation of gambling regulation approaches within the European Union and beyond, potentially prompting further tightening of regulations in other jurisdictions seeking to protect their markets from unlicensed gambling activities.

Further discussion arises when considering this case in the context of Maltese legislation, where Bill 55 is in effect, aimed at protecting Maltese gambling operators from lawsuits outside the country. This could create another conflict between the legal norms of Malta and other jurisdictions, such as Austria, which adheres to a stricter approach to regulating unlicensed operators.