Secondary lotteries on the internet are considered online gambling and therefore require a license. This was decided by the Federal Court of Justice in a ruling dated November 8, 2023. “In practice, this means that players who have lost money gambling with secondary lotteries on the internet can reclaim their losses if the provider did not have the required license,” says lawyer István Cocron.
Secondary lotteries allow people to bet on the outcome of state lotteries online. State lottery providers considered this a violation of the ban on online gambling in Germany and successfully sued at the Higher Regional Court of Düsseldorf. The Federal Court of Justice (BGH) rejected their appeal against the ruling.
In Germany, online gambling was generally prohibited until June 30, 2021. While gambling providers could apply for a license in Germany from July 1, 2021, the Federal Court of Justice (BGH) ruled that the defendant operators of secondary lotteries had not done so. Therefore, their conduct was deemed unfair. Without a valid license, online gambling remains prohibited in Germany even after June 30, 2021, the Karlsruhe judges clarified. “The consequence is that the concluded contracts are void and players can reclaim their losses if the gambling provider does not possess the required authorization,” explained attorney Cocron.
A ban with a licensing requirement serves, among other things, to protect players. This objective would be jeopardized if the focus were no longer on whether a license for the gambling offer exists, but only on whether the substantive legal requirements for a license are met. The Federal Court of Justice (BGH) clarified that unfairness hinges on the absence of a required permit.
Lawyer Cocron: “The Federal Court of Justice’s decision clearly shows that online gambling, including secondary lotteries, is only permitted in Germany if the operator possesses the required license. If this is not the case, players can reclaim their losses, regardless of whether they were incurred before or after June 30, 2021. Furthermore, providers of legal gambling can also take legal action against providers of prohibited online gambling.”
