The ban on online gambling in Germany serves, among other things, to protect players from ruinous behavior. Therefore, obtaining a license to operate online gambling is subject to conditions. Providers must, among other things, guarantee compliance with a monthly deposit limit of €1,000. The Federal Court of Justice (BGH) has already made it clear that online gambling is not eligible for a license if the deposit limit or other regulations are violated. The Higher Regional Court of Koblenz, in its decision of April 25, 2024, concurred with the BGH’s opinion and made it clear that it would reject the appeal by the sports betting provider Tipico against a ruling by the Mayence Regional Court. The Regional Court had ruled that Tipico must compensate a player for losses amounting to approximately €367,000.
Only since July 1, 2021, have online gambling providers been able to apply for a license in Germany. Previously, online gambling was generally prohibited in Germany. “If this prohibition was violated, the contracts with the players are void, meaning they can reclaim their losses,” says lawyer István Cocron.
Online sports betting is also subject to the ban. However, operators had the opportunity to apply for a permit even before July 1, 2021. Since the awarding procedure at that time violated European law, the permits could not initially be granted. The first licenses were only awarded in the fall of 2020.
Online sports betting providers are therefore resisting players’ claims for refunds, arguing that they obtained their licenses through a procurement process compliant with EU law. ” But they’re making it too easy for themselves ,” says lawyer Cocron. The German Federal Court of Justice (BGH) already clarified in its ruling of March 22, 2024, that the granting of licenses was subject to conditions such as compliance with a deposit limit, and that the license would not have been granted in the event of violations of the limit or other requirements. Lawyer Cocron: ” This means that players are entitled to a refund if the license conditions are violated. “
The Higher Regional Court of Koblenz made it clear in its ruling that it concurs with the Federal Court of Justice’s opinion and will reject the appeal by sports betting provider Tipico against a judgment of the Mayence Regional Court. In the underlying case, the Mayence Regional Court had ruled that Tipico must reimburse the plaintiff for his losses amounting to approximately €367,000.
The Higher Regional Court of Koblenz reasoned that although Tipico had applied for a license, its sports betting service would likely not have been permissible anyway, because players’ stakes were not limited to a deposit limit of €1,000. The sheer amount of the loss alone demonstrated that the defendant had entered into contracts with the plaintiff that far exceeded the monthly deposit limit.
Although Tipico received its license in September 2020, the Koblenz Higher Regional Court ruled that the plaintiff is still entitled to a refund of losses incurred in October and November 2021 because the deposit limit was exceeded. Even with the license granted, only sports betting that complied with legal requirements and, for example, adhered to the deposit limit, was permitted.
“ The decision shows that players still have a good chance of recovering their losses from online sports betting,” said lawyer Cocron.
