European Court of Justice to hear player lawsuit that seeks to recoup gambling losses
The hearing in Luxembourg could determine the future of player loss cases.
Luxembourg.- A lawsuit filed by a German player seeking to recoup gambling losses has now reached the Court of Justice of the European Union (CJEU). Case C-440, originally filed against Malta-based Lottoland, could determine the fate of lawsuits brought by players over losses incurred through unlicensed gambling platforms.
The lawsuit in question was initiated by a player in 2021. The plaintiff says they were able to access Lottoland’s services in Germany despite the company lacking a licence in the country. Lawyer Volker Ramge later acquired the claim, which led to its resurfacing in Malta with a broader scope, representing additional German customers against a wider group of Malta-based operators allegedly offering services in Germany without proper authorisation.
Following the lawsuit’s filing, the defendants escalated the case to the European Union Court of Justice seeking comment on the conformity of Germany’s 2012 Interstate Treaty on Gambling with European Union law. The Advocate General’s opinion is expected to be announced on July 10.
German and Austrian regional courts have processed more than 20,000 cases brought by players suing to try to recover gambling losses from unlicensed operators. The cases caused Bet-at-home to leave the Austrian market in 2021.
A test of EU vs national regulations
Four cases have now reached the CJEU, including one against Tipico. They will prove a test of whether national regulations comply with European Union law. There has been much debate around Malta’s Bill 55, legislation introduced in 2023 that allows the Maltese judiciary to refuse enforcement of foreign judgments related to the online gambling sector.
Upon the bill’s implementation, the Malta Gaming Authority (MGA) described it as a necessary measure to safeguard MGA-licensed businesses from disputes that contradict Europe’s free market principles. However, the legislation has drawn criticism from various EU member states, including Germany, where the new federal regulator, GGL, has argued that the law is incompatible with EU regulations.
Player loss cases in the Netherlands
Player loss cases have also extended to the Netherlands. This week, the Rotterdam District Court has found in favour of a player, ruling that Betsson must reimburse more than €500,000 in losses incurred on its unlicensed website before the Netherlands regulated online gambling in 2021.
The case dates back to 2014, when the customer first made a deposit. At that time, online gambling was not legally permitted in the Netherlands. However, the player said they were able to access online casinos run by BML Group and Corona Limited, including Betsson, Kroon Casino, and Oranje Casino. Identified in court documents only as ‘Eric,’ the customer initiated legal action seeking the return of losses incurred while gambling on these platforms.
The customer said they deposited a total of €385,378 on the unlicensed sites. His case argued that the funds should be refunded because they were lost in an unlawful gambling environment. As Betsson failed to appear, the court issued a default judgment in favour of the player.
