Federal Court of Justice - Dispute over sports betting goes to the EU Court of Justice next
A person who lost money on unlawful Sports Betting with Tipico several years ago and tried to get it back through the court, has to wait longer for a final verdict from the European Court of Justice (ECJ). The legal dispute regarding this matter will be presented to the ECJ. The Karlsruhe proceedings against a claim 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 bettings with Tipico from 2013 to 2018 and lost more than 3700 Euro, which he demanded back. He considered the sports bettings to be unlawful and the contracts void, because the provider did not have the necessary permit from the competent German authority. The claimant's right to sue had been bought by the process financier Gamesright during the course of the proceedings.
The ECJ is now supposed to decide whether the European Union's service provider freedom of an provider based in another EU country stands in the way of the recovery of losses from unlawful sports bettings. Tipico has its headquarters in Malta. The question arises whether betting contracts are void if the provider had applied for a German license but the procedure for this application was in violation of EU law. In the case of void contracts, players could have a claim for the return of their lost betting stakes.
All parties are confident
Tipico's lawyer Ronald Reichert evaluated the BGH's decision as a great success. Only the ECJ can clarify Union law. He had already clearly decided in a criminal case that the lack of a German license due to a non-transparent procurement procedure should not be denied to licensed providers in the EU. "We are very confident that the ECJ will also confirm this in the concrete case." The German Sports Betting Association also expressed confidence that the ECJ will decide in favor of the providers and European service provider freedom.
From the perspective of the plaintiff Gamesright, the journey to Luxembourg shows the complexity and significance of legal questions. "Even though we have not received a final decision today, we are confident that the clarification on a European level will bring the necessary legal security for all parties involved." We will continue to fight for the rights of consumers.
The ECJ judgment in favor of the players will only be delayed, but not prevented, says lawyer Claus Goldenstein, whose law firm, according to its own statements, represents more than 4500 clients in similar cases. "Affected gamblers should not be alarmed and should quickly request the return of online betting losses to prevent the expiration of existing legal claims."
BGH tends to player-friendly judgment
In the lower instances, the player's claim was not successful. The Landgericht Ulm stated that Tipico had indeed violated provisions of the State Treaty on Gambling in the then valid version of 2012, but the betting contracts were still valid. It already became clear during the oral proceedings that the BGH might have a different opinion.
The Federal Court of Justice (BGH) also emphasized that it tends to view betting contracts without a license as invalid, even if the providers had already applied for a permit for the organization of sports betting. In making this assessment, the previous case law of the European Court of Justice (EuGH) was also taken into account. The protection of the population from excessive economic damage through public gambling therefore justifies an intervention in the freedom of services - even if the licensing procedure was in violation of Union law.
Experts expect an even greater wave of lawsuits from a consumer-friendly judgment, as there are already thousands of similar proceedings in German courts. This is due in part to the fact that, in addition to Tipico, other betting providers have offered sports betting in a legally uncertain situation in previous years. Law firms and some companies have also 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 more plaintiffs to file lawsuits.
- The legal dispute over unlawful Sports Betting with Tipico, a provider based in Malta, is being heard at the European Court of Justice (ECJ) in Luxembourg, affecting consumers from Baden-Württemberg, Germany.
- Despite the postponement of Karlsruhe proceedings against Tipico, lawyer Ronald Reichert is confident that the ECJ will uphold the provider's rights under the European Union's service provider freedom.
- The German Sports Betting Association shares Reichert's confidence, believing the ECJ will side with providers and uphold European service provider freedom.
- Gamesright, the process financier for the initial claim against Tipico, is optimistic that a European-level clarification will bring legal security for all parties involved, especially consumers.
- Claus Goldenstein, a lawyer representing over 4500 clients in similar cases, advises affected gamblers to request online betting loss returns quickly to preserve their legal claims, regardless of the ECJ's eventual judgment.
- Experts anticipate an increased wave of lawsuits stemming from a player-friendly ECJ judgment, given the thousands of similar proceedings already in German courts and the growing number of betting providers operating in a legally uncertain environment.
