Federal Court of Justice - BGH asks EuGH about losses from unlawful sports bets
The legal dispute over the reimbursement of losses from unauthorized sports bets will be a case for the European Court of Justice (ECJ). The Federal Court of Justice (BGH) will clarify a question regarding the service provider's freedom of provision for the providers in this matter. The Karlsruhe proceedings against a claimant's lawsuit against Tipico have been postponed until a decision from the Luxembourg judges is made, the highest German civil court announced. (Az. I ZR 90/23)
In this specific case, a player participated in sports bets with Tipico from 2013 to 2018 and lost over 3700 Euro, which he demanded back. He considered the sports bets to be unlawful and the betting contracts to be invalid because the provider did not have the necessary permit from the competent German authority. The plaintiff's right to sue had been bought by the process financier Gamesright during the course of the proceedings.
Tipico lawyer Ronald Reichert evaluated the BGH decision as a great success. Only the ECJ can clarify Union law. He had already clarified a criminal case that the lack of a German license due to a non-transparent procurement process should not be opposed to licensed providers in the EU. "We are very confident that the ECJ will also confirm this in the concrete case." From the perspective of Gamesright, the journey to Luxembourg shows the complexity and significance of legal questions. "We will continue to fight for consumers!"
Preliminary rulings in Baden-Württemberg in favor of players
In the preliminary proceedings, the player's claim was unsuccessful. Most recently, the Landgericht Ulm stated that Tipico had indeed violated provisions of the State Treaty on Gambling in the then valid version from 2012, but the betting contracts were still valid.
At the beginning of April, it had been hinted that the BGH might have a different opinion. At that time, a reference procedure decision of the court on a similar case was made public, which strengthened the position of the players. In the current case, the presiding judge of the responsible first civil senate, Thomas Koch, declared at the beginning of the oral proceedings in June that, according to a preliminary assessment, the senate tends to consider such contracts without a so-called license as invalid, even if the providers had already applied for a permit to conduct sports betting.
A consumer-friendly judgment could trigger a larger wave of lawsuits, as there are already thousands of similar proceedings in German courts. This is due, on the one hand, to the fact that, in addition to Tipico, other betting providers also offered sports bets in an legally uncertain situation in previous years. On the other hand, law firms and some companies have specialized in such lawsuits - like the plaintiff in this case, Gamesright. The process financier assumes that a judgment in favor of the gamblers could encourage even more plaintiffs to file lawsuits.
- The Federal Court of Justice (BGH) is currently deliberating on whether to restrict the service provider's freedom of provision in regards to unauthorized sports betting, a matter that will eventually be resolved by the European Court of Justice (EuGH) in Luxembourg.
- The legal dispute over the reimbursement of losses from unauthorized sports bets involves a player from Baden-Württemberg who engaged in sports betting with Tipico from 2013 to 2018, resulting in over 3700 Euro in losses.
- In this particular case, the player argued that the sports bets were unlawful and the betting contracts were invalid due to Tipico's lack of a permit from the competent German authority.
- The player's right to sue was bought by Gamesright during the course of the proceedings, a company that has specialized in such lawsuits, indicating a potential trend in litigation related to sports betting and reimbursement.
- Should the Federal Court of Justice rule in favor of the players, it could lead to a wave of similar lawsuits, affecting not just Tipico but other betting providers as well, given the widespread practice of unauthorized sports betting in the past.
- The outcome of this landmark case will significantly impact consumers' rights in sports betting and gaming, making it crucial for both players and service providers to closely follow the proceedings in the Federal Court of Justice and, ultimately, the European Court of Justice in Luxembourg.
