Without the required license, online sports betting was and remains prohibited in Germany. The consequence of illegal sports betting is that players can reclaim their losses. However, the lack of a license is not the only reason why betting providers may be obligated to refund losses. According to the Berlin Court of Appeal, a violation of the monthly deposit limit can also justify a claim for reimbursement.
“ The granting of licenses is subject to conditions that online gambling providers, including sports betting providers, must adhere to. This includes, among other things, ensuring that a player cannot exceed their monthly deposit limit of €1,000 ,” says lawyer István Cocron. This is intended to prevent players from literally gambling away their homes and livelihoods.
In its ruling of March 22, 2024, the German Federal Court of Justice (BGH) made it clear that gambling providers who do not comply with these regulations would not have received a license for their services in Germany in the first place. This view of the highest court is shared by the Berlin Court of Appeal (Kammergericht Berlin). As the court stated in a letter, it assumes that lawsuits by players seeking reimbursement of their losses are ready for a decision if the provider has violated so-called substantive gambling law. ” If, for example, there is a violation of the deposit limit, the Berlin Court of Appeal is of the opinion that the concluded contracts are void and the players can reclaim their losses ,” said attorney Cocron.
The Berlin Higher Regional Court (KG Berlin) felt compelled to issue this statement after the German Federal Court of Justice (BGH) referred the matter to the European Court of Justice (ECJ) on July 25, 2024, to clarify whether a player is entitled to a refund of their losses from online sports betting. This referral stems from the fact that the betting provider had already applied for a license, which could not be granted because the licensing procedure at the time violated European law. The BGH also reaffirmed its position that it considers online gambling without the required license to be illegal. Attorney Cocron stated: ” Essentially, the BGH wants the ECJ to confirm this view. The BGH does not need to rule on compliance with the deposit limit in this case .”
It has indeed happened repeatedly that gambling providers have violated substantive gambling law. ” Players should therefore not wait for a decision from the Federal Court of Justice, but assert their claims for reimbursement now, especially since these claims can also become time-barred ,” says lawyer Cocron.
