The Federal Court of Justice has repeatedly made it clear that it considers online sports betting in Germany without the required license to be illegal. “The consequence is that players can reclaim their losses from illegal sports betting on the internet,” says lawyer István Cocron, who has already successfully enforced this claim for numerous players.
Although the German Federal Court of Justice (BGH) referred a case concerning refund claims for prohibited online sports betting to the European Court of Justice (ECJ) in July 2024 and has not yet issued a ruling, it has nevertheless made it clear that it maintains the betting contracts are void and that players can reclaim their losses. The ECJ is to clarify, however, whether this also applies if the gambling provider applied for a license but was denied it due to a licensing procedure that violated EU law.
In the underlying case, the plaintiff participated in online sports betting via the Tipico website between 2013 and 2020, losing approximately €4,000. Since Tipico only received the necessary license to offer online sports betting in Germany on October 9, 2020, the plaintiff is demanding repayment of his losses.
The German Federal Court of Justice (BGH) essentially upheld the claim for reimbursement. However, Tipico had already submitted a license application earlier. Since the licensing procedure did not comply with European law, no permits could be granted. Tipico finally received its license in October 2020. Therefore, the European Court of Justice (ECJ) will now have to decide whether the ban on online sports betting was justified under these circumstances.
At the same time, the Federal Court of Justice (BGH) made no secret of the fact that it considers online sports betting without the required license to be invalid. This is because players cannot be held responsible for the state’s shortcomings. The reasons for the ban under the Interstate Treaty on Gambling—namely consumer protection, fraud prevention, and protecting players from ruinous behavior—remain valid even if the licensing procedure violated European law. “The BGH is less concerned with questioning players’ right to a refund and more interested in securing a ruling from the European Court of Justice (ECJ),” said attorney Cocron. The ECJ has previously ruled that national gambling bans are permissible if they serve the public interest.
Furthermore, the Federal Court of Justice (BGH) also referred to its preliminary ruling of March 22, 2024. In that ruling, it had made it abundantly clear that it considers online gambling without the required license to be illegal. It also pointed out that the granting of licenses is subject to conditions, such as compliance with a monthly deposit limit to protect players. In the event of violations of these conditions, a license would not have been granted in any case.
The Federal Court of Justice (BGH) did not have to rule on such violations in July 2024. “However, it shows that claims for repayment can be justified for reasons other than a lack of a license,” said lawyer Cocron.
More information can be found on our topic page ” Online Casino & Online Sports Betting: Getting Money Back from Gambling “
