Europe’s Gambling Laws Are Changing – a Case in Point

Europe’s online gambling market is entering a new phase. For years, many operators relied on licences from jurisdictions such as Malta to legally offer online casinos and sportsbooks across borders.

That model is now under pressure as more European countries introduce strict national licensing systems and courts become less tolerant of cross-border gambling without local approval.

A recent legal dispute from Austria — involving a player attempting to recover around €19,000 in losses from a Malta-licensed operator — highlights how quickly the rules of the game are changing.

The outcome may have long-term consequences for players, operators, and even gambling affiliates across Europe.

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The Austrian case in simple terms

The case centres on an Austrian resident who gambled online with an operator licensed in Malta, but not licensed in Austria.

Under Austrian law, most online casino games are restricted to locally licensed providers.

The player argued that because the operator lacked an Austrian licence, the gambling contract was invalid and his losses should be refunded.

Austrian courts agreed with this logic and issued judgments ordering repayment. The case then escalated to the Court of Justice of the European Union (CJEU), which was asked to clarify whether Austrian law could apply to a company licensed in another EU country.

The CJEU ruled that gambling losses can qualify as non-contractual damage, meaning the applicable law may be that of the player’s country of residence — where the financial harm occurred.

This interpretation significantly strengthens the position of players suing offshore or cross-border operators.

However, the ruling did not automatically force operators to pay. That’s where Malta’s controversial response comes in.

Malta’s Bill 55 and the enforcement problem

Although Austrian courts issued final judgments in favour of players, Maltese courts have refused to enforce them.

The reason is a Maltese legal provision known as Article 56A of the Gaming Act, commonly referred to as Bill 55.

In short, Bill 55 allows Maltese courts to block the enforcement of foreign judgments if they conflict with Malta’s gambling framework or threaten the legality of services licensed by the Malta Gaming Authority (MGA).

For players, this creates a frustrating situation:
✔ You can win a case in your home country
✖ But still struggle to collect the money if the operator is based in Malta

This legal deadlock has attracted attention at EU level. In 2025, the European Commission launched infringement proceedings against Malta.

The argument was that Bill 55 may violate EU rules requiring Member States to recognise and enforce each other’s court judgments. A final EU decision is still pending.

How valuable are Malta, Curaçao and Anjouan licences today?

Licences from Malta, Curaçao and Anjouan remain valid and widely used, but their ability to protect operators from local European gambling laws is weakening.

As more EU countries enforce domestic licensing rules, these licences are increasingly useful for specific markets rather than as a blanket “passport” to Europe.

What this means for online casinos and sportsbooks

For operators, the message is clear: targeting players in strictly regulated countries without a local licence is becoming riskier.

National courts are more willing to:

• Apply local gambling laws
• Declare contracts void
• Order refunds of player losses
• In some cases, pursue company directors personally

Malta’s Bill 55 currently offers some protection at the enforcement stage, but that protection may not last forever if EU institutions intervene. Even if it does survive, operators face growing legal uncertainty, reputational risks, and higher compliance costs.

As a result, many brands are now:

• Applying for country-specific licences
• Tightening geoblocking for restricted markets
• Improving responsible gambling and KYC standards

This shift favours well-regulated, transparent operators — and makes grey-market strategies less attractive.

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What this means for European players

For players, the developments are both encouraging and cautionary.

The good news:
Players now have stronger legal arguments when gambling with operators that are not licensed in their country. Courts are increasingly willing to side with consumers and apply domestic protection laws.

The reality check:
Winning a case does not always mean fast repayment. Enforcement can still be complex, expensive, and slow — especially when operators are based in jurisdictions that resist foreign judgments.

Over time, however, these cases are likely to improve the market. As enforcement pressure grows, fewer operators will risk serving countries where they are not properly licensed.

Final thoughts

The Austrian €19,000 case is not just about one player — it’s a sign that Europe’s gambling market is moving away from regulatory shortcuts and toward territorial enforcement and stronger consumer protection.

Licences still matter, but where a casino is licensed now matters more than ever. For players, the road to refunds is opening, even if it remains complex. For operators and affiliates, the direction is clear: compliance is no longer optional — it’s the future of the European gambling industry.

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