EU court allows Austrian resident to pursue damages against Malta gaming firm
Malta has sought to shield local gaming companies from such claims
Online gamblers in the EU can seek redress in their country of residence, a top court has ruled, in a case involving a Maltese gaming provider.
The case was brought before the Court of Justice of the European Union by Austria's highest court, after an Austrian resident 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.
The customer therefore argued that the gambling contract was null and void, as the two Austrian directors are personally as well as jointly and severally liable for the fact that Titanium offered illegal games of chance in Austria.
Titanium's two directors dispute the international jurisdiction of the Austrian courts, arguing that the damages occured in Malta, where the law does not provide for liability on the part of company’s officers vis-à-vis its creditors.
Malta has sought to shield local gaming companies from foreign court judgements with a controversial law refer to as Bill 55.
The government justified the law as part of a longstanding policy to encourage the establishment of gaming operators in Malta and to shield the sector from potentially costly legal claims abroad.
In 2023, the Malta Gaming Authority warned of a “very aggressive advertising” in Austria and Germany, encouraging customers of Maltese platforms to seek legal aid to recoup their losses.
In its decision on Thursday, the Court of Justice said that an online gambling player may rely on the law of their country of residence when pursing such claims.
"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,” the court said about the case.
The Court of Justice said a player may rely on the law of the country of residence.
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.