Austrian Supreme Court rules bet-at-home Must Repay Player Losses
Austria’s Supreme Court has ruled that Bet-at-home, a subsidiary of Betclic Everest, must pay €2.8 million to cover player losses, almost three years after exiting the Austrian market.
Austrian Supreme Court rules Bet-at-home must pay back player losses.
LISTEN TO THIS ARTICLE:The case involved a player identified by the court as a gambling addict who incurred substantial losses on bet-at-home’s platform between August 2018 and July 2020. The court determined that the player was “legally incapacitated” during the period of activity due to their gambling addiction.
bet-at-home’s subsidiary, bet-at-Home Entertainment, which has since been dissolved, had previously earmarked €2.3 million to resolve this matter.
The ruling, which dates back to May 2022, is connected to Bet-at-home’s now-defunct Malta-based entity, bet-at-home.com Entertainment Ltd. Despite the subsidiary being in liquidation, the court has held the parent company, bet-at-home AG, and its remaining Malta subsidiary, bet-at-home.com Internet Ltd, accountable for reimbursing the losses.
In a statement released on 21 August, bet-at-home indicated it is evaluating how this payment might impact its projected 2024 revenue, which is estimated to range between €45 million and €53 million. The company’s H1 earnings report in July projected an EBITDA ranging from a €1 million loss to a €2.5 million profit.
Court Ruling Forced bet-at-home Our of Austria
bet-at-home pulled out of Austria’s online casino market in October 2021, following a Supreme Court decision that declared foreign iGaming brands were operating illegally in the country. This ruling invalidated contracts between these brands and Austrian players, allowing players to sue for their gambling losses.
After a series of layoffs, bet-at-home began the process of winding down its Malta subsidiary in January 2022. Austrian online casino operations were central to this subsidiary, and without them, management stated it could not continue as a viable entity. Nevertheless, bet-at-home continues to offer sports betting in Austria through a different subsidiary.
The exit from the Austrian market had a notable financial impact on the broader bet-at-home group, which subsequently underwent an internal review and transitioned to EveryMatrix’s technology platform.
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Further Challenges in the UK and Switzerland
bet-at-home faced additional difficulties when the UK Gambling Commission suspended its license, leading the company to exit the UK market in July 2022. By September 2022, bet-at-home warned that it might struggle to maintain sufficient liquidity to meet its financial commitments.
The company is also contending with issues in Switzerland, where a court ruling in July of this year indicated that bet-at-home.com Internet Ltd owes €1.3 million in VAT on gambling activities between 2014 and 2017, with an additional €2.7 million in VAT due for the period from 2018 to June 2024. bet-at-home plans to appeal this decision.
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