CJEU sides with Austria on gambling claims against Malta licences- Online Gamblers Can Seek Redress In Countries Of Residence: EU Top Court

• Jurisdiction: A player can rely on their country of residence's law (e.g., Austria) to bring claims against foreign operators.
• Place of Damage: The damage (financial loss) is considered to have occurred where the player resides, making local law applicable.
• Null Contracts: The underlying gambling contract with an unlicensed operator can be deemed null and void under Austrian law.
• Impact on Malta Operators: This decision significantly challenges Maltese operators, who previously had some success in Maltese courts dismissing Austrian judgments, says this article and this article. 

• Austrian Monopoly: Austria maintains a strict state-controlled gambling system, aiming to protect players, which conflicts with the free provision of services under EU law.
• Maltese Counter-Arguments: Maltese operators argued that Austrian laws violated EU free trade principles and that judgments shouldn't be enforced.
• Previous Maltese Rulings: A Maltese court previously refused to enforce an Austrian judgment, citing public policy, but the new CJEU ruling provides guidance to national courts. 

• National Courts: The ball is back in Austria's Supreme Court (OGH) to apply the CJEU's guidance to specific cases, potentially leading to more successful claims for players, according to this article and this article.
• Industry Impact: The decision could allow hundreds of such claims to proceed in Austria and sets a precedent across the EU, affecting operators without local licenses, note this article and this article. 

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EU Court‘s New Law Might Drastically Change Malta’s Gaming Scene

The new law comes after a string of cases in which players from countries including Germany, Austria, and the Netherlands have sued operators over past or ongoing activity in the European grey marke

The Court of Justice of the European Union (CJEU) ruled that players may rely on the laws of their country of residence when bringing claims against operators lacking a local license, a decision that could have major implications for Malta’s grey-market gambling framework.

CJEU Accepts New Law that Might Undermine Malta’s Model

According to the CJEU, the applicable law is generally that of the country where the harm occurred. This principle applies to cases in which players seek to hold directors liable for violating national laws that prohibit offering gambling without a license. The court explained that if a player loses money gambling online with a company operating in an EU member state where it does not hold a license, the loss is treated as occurring in the player’s place of residence. 

The ruling could have significant long-term implications for Malta’s offshore gaming sector. Currently, operators in Malta are protected by local legislation often referred to as Bill 55, which shields all B2C gaming businesses from liability arising from activities licensed by the Malta Gaming Authority (MGA).

What Brought This Law to life?

The new law comes after a string of cases in which players from countries including Germany, Austria, and the Netherlands have sued operators over past or ongoing activity in the European grey market. One particular case from Austria served as a precedent for the adoption of the new law. 

The customer of the Maltese operator Titanium Brace Marketing, a subsidiary of SkillOnNet currently in liquidation, sued the company’s two directors in Austrian courts to recover his gambling losses. According to the court, Titanium held a gambling license in Malta but not in Austria, meaning it was operating under Malta’s offshore gaming framework.

However, the customer argued that the gambling contract was invalid and that the two directors should be personally liable under Austrian law, because Titanium had offered illegal gambling in Austria.

The directors contended that the Austrian courts lacked jurisdiction, claiming the harm occurred in Malta. Furthermore, they also argued that Maltese law should apply, which does not impose personal liability on company directors for creditors.

The complex case served as a precedent for the CJEU’s new ruling, which is currently facing legal challenges at the European level from jurisdictions that are unhappy with the decision. However, the precedent and subsequent new law may spur additional legal claims from players seeking to recover losses linked to unlicensed gambling in their home countries.

https://www.gamblingnews.com/news/eu-courts-new-law-might-drastically-change-maltas-gaming-scene/

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Conspiracy manipulated nearly 30 games Online Gamblers Can Seek Redress In Countries Of Residence: EU Top Court

Online gamblers in the EU can seek redress in their country of residence, even when the companies offering the games reside elsewhere, the bloc's top court ruled on Thursday.

The case was brought before the Court of Justice of the European Union by Austria's highest court.

A man there initiated proceedings against two directors of Maltese online games provider Titanium Brace Marketing to recover losses he incurred because of online gambling.

Titanium, currently in liquidation, held a gambling licence in Malta, but did not hold any licence in Austria so that the Austrian argued that the gambling contract was null and void.

The Court of Justice found in the case before it, a player may rely on the law of the country of residence, it said in a press release.

"The damage sustained by the player is deemed to have occurred in the country in which that player resides... according to the general rule, Austrian law would be applicable" in the present case, the statement added.

Oliver Peschel, an Austrian lawyer who specialises in gambling rights and who represents the Austrian man, said the court's decision would allow hundreds of claims in Austria alone to go ahead.

"It is a Europe-wide problem -- these illegal casinos destroying existences," Peschel told AFP.

He said his client, 37, was seeking redress over the loss of some 20,000 euros ($23,000) in online gambling.

Online gambling rakes in tens of billions of euros in revenue in Europe, according to the European Gaming and Betting Association.

https://www.barrons.com/news/online-gamblers-can-seek-redress-in-countries-of-residence-eu-top-court-b6cdd728?gaa_at=eafs&gaa_n=AWEtsqe8kf8rpefAvqixvoWlQAOnUcz-vxZWpR0ahXgMmw8BZalmy-1hIDgm23qZKoM%3D&gaa_ts=696b9ffe&gaa_sig=Pc1rX4ww76pdec-55FK1aU65Gv3JDVE13OZnwJORXn_-UHOuQh5lFw1SxGC9rDYfzPtcN3KLA7TNPZZUDeY8bw%3D%3D