The Federal Court of Germany ('Bundesgerichtshof' - BGH) will bring a case to the European Court of Justice (ECJ), discussing whether the freedom of sports betting operators to provide services impedes compensation for players who suffer losses in unauthorized online sports betting.
On July 25, 2024, the court released a press release regarding a high-profile case involving the German operator Tipico.
This issue has been lurking for nearly a decade and has finally led to what is known as player claims, which have been impacting the German gambling industry for about three years.
In the specific case, the plaintiff participated in online sports betting offered by an operator based in Malta from 2013 to October 9, 2020.
The brand operates a German-language website, but according to the 2012 National Gambling Treaty, it did not have the necessary license to offer sports betting in Germany.
In this context, how the European Court will evaluate the deficiencies in German gambling regulation (which has long been criticized by the gambling industry) is of interest.
The operator only obtained the necessary license on October 9, 2020, according to a new licensing procedure. The plaintiff is demanding the return of €3,719.26 (USD 4,000) in betting losses, arguing that the betting contract was invalid due to a violation of the National Gambling Treaty.
The BGH has raised a question whether EU law requires a special assessment, especially since a licensing procedure in 2012 violated EU law.
The European Court has previously ruled that if a member state itself violates EU law, it cannot impose criminal sanctions on its actions. Therefore, it must be clarified whether these principles also apply to civil claims.
The ruling of the European Court is highly anticipated, as it could have a profound impact on the EU's legal handling of online gambling and the enforcement of consumer rights.
It is now foreseeable that many lawsuits currently being heard in civil courts will be paused pending the forthcoming decision of the European Court.
In this context, how the European Court will evaluate the deficiencies in German gambling regulation will be interesting, as German gambling regulation has long been criticized by the gambling industry.
