The German Federal Court of Justice (‘Bundesgerichtshof” – BGH) will call the European Court of Justice (ECJ) in regard to the question of whether the freedom to provide services of a sports betting operator precludes the reimbursement of losses suffered by players in the context of unauthorised online sports betting.
The court published a corresponding press release on 25 July 2024, regarding a high-profile case in Germany involving operator Tipico.
This question had been lingering beneath the surface for almost a decade and has certainly culminated in the so-called player claims that have been hitting the gambling industry in Germany for about three years now.
In the specific case, the plaintiff participated in online sports betting offered by an operator based in Malta from 2013 to 9 October 2020. This brand operated a German-language website but did not have the required licence to offer sports betting in Germany as per the 2012 State Treaty on Gambling.
It will be interesting to see how the ECJ will evaluate the shortcomings of German gambling regulation, which have long been criticised by the gambling industry, in this context
The operator only received the necessary licence on 9 October 2020, under a new licensing procedure. The plaintiff is demanding the reimbursement of lost bets amounting to €3,719.26 ($4,000), arguing that the betting contracts are void due to the violation of the State Treaty on Gambling.
The BGH raises the question of whether EU law requires a special assessment, especially since a former licensing procedure in 2012 was conducted unlawfully under EU law. The ECJ had previously ruled that a member state cannot impose criminal sanctions for behavior if it has itself violated EU law. Therefore, it must be clarified whether these principles also apply to civil claims.
The ECJ's decision is highly anticipated, as it could have far-reaching implications for the legal treatment of online gambling offers and the enforcement of consumer rights in the EU.
It is now to be expected that numerous proceedings pending before the civil courts will be suspended in anticipation of the forthcoming decision of the ECJ. It will be interesting to see how the ECJ will evaluate the shortcomings of German gambling regulation, which have long been criticised by the gambling industry, in this context.
