Austria: Curious domain seizure by player at Mr Green

Austrians are quite active in claiming gambling losses from online casinos that are not licensed in the country. Together with Germany, the majority of such judgements are handed down in Austria compared to the rest of Europe. However, enforcement is made much more difficult by the Maltese gambling protection shield. This is also the reason why the Supreme Court has now given the green light for a hitherto unique measure: A claimant can seize Mr Green's AT domains and, if necessary, sell them in order to recover their stakes.

A curious case is currently making headlines in Austria: A gambler has actually managed to seize special domains of the online casino Mr Green. The legal basis for this unusual step lies in the strict Austrian gambling legislation. Gambling on the Internet is strictly regulated in Austria. Only the online casino Win2day, a joint venture between Austrian Lotteries and Casinos Austria AG, is officially authorised. Due to its licence, Win2day is the only legal online gambling platform with slots and casino games in the Alpine republic.

All other online casinos operating in Austria without a corresponding licence face a legal risk: players can reclaim their losses from these providers. This regularly leads to disputes in court. However, many foreign online casinos, especially those based in Malta, invoke the so-called gambling protection shield. This law supposedly makes the providers immune to claims for repayment by Austrian or other foreign customers.

Despite this situation, an Austrian player has now achieved an unprecedented and downright curious legal success. Mr Green, one of the largest online casinos in Europe based in the UK, refused to reimburse the woman's losses of more than 30,000 euros, citing the Maltese legal situation. However, the Supreme Court (OGH) in Vienna ruled in favour of the player in its judgement of 30 April 2024 and, because Malta blocked the claims, approved the seizure of Mr Green's Austrian domains. If the casino continues to fail to pay, the addresses could even be foreclosed.

That's what happened: Judgement for reimbursement of 32,999.10 euros does not apply, domain seizure as a way out

The player in question had lost a total of 32,999.10 euros at Mr Green and then tried to get the money back by taking legal action. However, she was unsuccessful due to the gambling protection shield.

The current judgement states:

‘In the meantime, the factual and legal situation has changed because Malta has passed a law stating that final and enforceable judgements from Austria may not be enforced against companies in Malta that have a Maltese gambling licence. Furthermore, it was clear - from enforcement proceedings initiated for two other clients in Malta via a trusted lawyer of the representative of the operator - that the Maltese courts invoked the aforementioned law and refused to enforce Austrian judgements in gambling cases and also refused to refer the question of the compatibility of the Maltese law with EU law to the ECJ. Prosecution in Malta was therefore difficult and in any case unreasonable.’

As a consequence, the court is taking an alternative route, which is intended to provide the plaintiff with justice or create leverage in order to perhaps persuade Mr Green to pay after all: It authorised the seizure of the provider's Austrian domains.

The text of the court's decision states:

‘Since the obligated party (party) refuses to comply with the judgement, the operating party intends to have the domains ‘www.m*.at’ and ‘www.g*.com/at’ seized and sold.’

According to the Austrian media, the seizure has now taken place. However, a final, legally binding decision is still pending.

The Maltese gambling protection shield - Bill No. 55

The so-called Maltese gambling protection shield, Bill No. 55, strengthens the position of gambling providers licensed in Malta against legal claims from other countries. It was passed (among other things) in order to intercept a long-lasting wave of lawsuits against the country's gambling companies. Accordingly, Maltese courts will no longer enforce judgements from abroad relating to the recovery of losses in online casinos and/or sports betting providers with a licence in Malta. This makes it more difficult for players from other countries to enforce their claims. The procedure was initially accepted by German authorities and politicians without any major reaction. After the law became legally binding, there were clearer reactions and a complaint was lodged with the EU Commission. Most recently, the GGL also had its say on Bill No. 55. The German gambling supervisory authority primarily outlined its responsibilities and commented on its assessment of the legality of the law. In principle, there was some legal pressure against Malta, but the protective shield is still in force.

Conclusion

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