A legal case concerning historic pre-regulation player losses in Germany has been passed to the European Court of Justice (ECJ) for consideration.
The case was considered by the German Federal Court of Justice (BGH) in June, which announced on 25 July that it would be referred to the ECJ.
The case concerned a dispute between an online sports bettor and Malta-based betting operator Tipico.
The player in question lost €3,719.26 (around $4,100) playing with the operator between 2013 and 2018.
During this period, Tipico held a license from the Malta Gaming Authority (MGA) but did not possess a German permit to offer sports betting, which they only received in 2021.
Tipico’s lack of a local license during this period was due to delays in the rollout of the licensing system in Germany, with the legal status of sports betting in the country remaining uncertain until 2020.
At this time, the German market was liberalized, but the licensing process could not keep up with the rapid growth in applications.
As a result, although sports betting was legalized, licenses were not issued, creating a legal gap in the sector.
The European Court of Justice will now decide whether the player’s losses should be compensated in accordance with European law.
The decision is awaited with great interest in the European gambling sector, as it is likely to have a significant impact on other cases involving the compensation of player losses.
The plaintiff claims that the betting contracts under which the losses were incurred are invalid due to a breach of the German State Treaty on Gambling.
On the other hand, European law requires the free provision of services, which allows authorities in one Member State to offer their services to customers in other countries.
According to legal experts, several similar cases pending in the civil courts may be suspended until the European Court of Justice’s decision.
Don’t forget to subscribe to our Telegram channel!
