German court favours operators in dispute over igaming losses
A German court has ruled that online gaming operators are not obliged to reimburse players for gaming losses if they played on unlicensed casino games.
Germany.- Euskirchen District Court has ruled that online gaming operators need not reimburse players for gaming losses incurred playing unlicensed casino games.
A German player had brought a lawsuit to court arguing that he should be reimbursed for gambling losses incurred in 2020 because the games were illegal. The player claimed he only learned the games were illegal after incurring the losses.
However, the court has dismissed the case. It followed a precedent set by Munich and Duisburg regional courts and ruled that the player willingly participated in the games and received an opportunity to win.
Hambach and Hambach, the law firm representing the operator involved in the case, said: “Due to the terms and conditions of the provider, the plaintiff knew that he should have found out about the legal situation.
“In addition, the plaintiff had made his stake voluntarily and in return received a chance to win from the provider. This also means that there is no damage in the legal sense, according to the court.”
German licensed igaming market to go live
Germany’s new state treaty on gambling has been approved by all 16 of Germany’s federal states, providing a framework for the launch of a licensed igaming market from July 1.
Operators hoping to work under Germany’s new licensed market have already been able to cater to customers under a transitional regime since November.
The new licensed regime includes strict rules on stake limits and other restrictions. Many have already seen an impact on revenue as a result of amending operations to comply with new legislation, with Bet-at-home reporting a 5.5 per cent drop in revenue year-on-year.
However, one of the most controversial aspects is the tax regime that has been proposed to accompany the new market.
The proposed tax regime for Germany’s new igaming market sets a 5.3 per cent tax rate on turnover on online slots and poker, which many operators and associations fear will make the licensed igaming sector untenable.
A survey carried out by Goldmedia for Entain, Flutter Entertainment and Greentube found that half of German igaming players may be driven to the unlicensed market as a result of the tax rate.
The proposed tax regime is being analysed by the federal legislature, the Bundestag, and is expected to be approved.
However, both the European Gaming and Betting Association (EGBA) and the German industry association Deutscher Sportwettenverband (DSWV) have filed complaints with the European Commission arguing that the proposed 5.3 per cent tax on online slots and poker turnover constitutes illegal state aid for land-based gaming.
EGBA secretary general Maarten Haijer said: “The rate of the proposed tax is punitively high and will distort market competition and directly benefit Germany’s land-based gambling establishments over their online counterparts.
“We call on German politicians to rethink the proposed tax rate and bring it closer in line with the tax rate applied to online casino products in other EU countries.”
