German Bettors’ Compensation Claims Referred to European Court of Justice
The question of whether German bettors can reclaim their losses from operators such as Tipico, who operated without valid licenses between 2012 and 2020, is yet to be resolved.
German court sends bettors compensation claim to European Court of Justice.
LISTEN TO THIS ARTICLE:The German Federal Court of Justice (Bundesgerichtshofs, BGH) has referred a related case to the European Court of Justice (ECJ), which will significantly prolong proceedings. Numerous gamblers have turned to German courts seeking compensation for their lost bets, arguing that their bets should be void due to the lack of proper licensing.
German Court’s Referral Prolongs Uncertainty for Betting Operators
The core issue revolves around betting operators such as Tipico applying for German licenses during those years but hitting bureaucratic delays, resulting in no licenses being issued for several years. Despite this, the companies continued their operations using licenses from other EU countries, such as a Malta Gaming Authority license. German law stipulates that without the required German licenses, players who lost money during this time should be eligible for refunds.
The BGH, while inclined to consider these contracts void, has sought clarification from the ECJ on whether the inefficient German licensing process renders European laws, which allow the free movement of services within the EU, inapplicable. This legal principle complicates matters, as it may justify the operators’ actions if it is decided that the licensing issues were beyond their control and, therefore, their contracts with bettors are not void.
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Bettors and Operators Await ECJ Decision
Lawyers Jannis Staudt and Claus Goldenstein, who are representing many affected customers, have advised their clients to continue pursuing their claims to avoid the ten-year limitation period on such losses expiring. They point out that European courts have historically leaned towards consumer protection, anticipating a favorable outcome for the bettors.
Related: Netherlands Court Orders Refunds of Historic Gambling Losses
On the other hand, Tipico and other operators are optimistic about the BGH’s referral to the ECJ and are confident of a ruling against the refunds. This aligns with a previous ruling that identified flaws in the German licensing process as a violation of EU law. The operators argue that they should not be penalized for the flawed licensing process.
The ECJ’s ruling will influence many similar cases across Europe. A decision in favor of the players could result in operators having to refund millions of euros in losses, while a ruling in favor of the operators would confirm the legality of their actions during the licensing void and potentially limit their financial liabilities.
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