Unauthorized sports betting: BGH examines reimbursement of losses

Process - Unauthorized sports betting: BGH examines reimbursement of losses

The Federal Court of Justice (BGH) will deal with the question on Thursday (12:00 PM) whether an online sports betting provider without a valid German license is obliged to reimburse the lost bets of a player. The man had participated in sports bets of the provider Tipico from 2013 to 2018 and lost more than 3700 Euro, which he demanded back. He argues that the sports bets were unlawful and the betting contracts invalid, as the provider did not have the necessary permission from the responsible German authority at that time. Tipico had applied for such a permit for the organization of sports bets, but only received it in 2020. (Az. I ZR 90/23)

So far, the player has not been successful with his lawsuit. The Ulm District Court argued 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 effective. However, it is possible that the BGH sees it differently, as a hint from the BGH published at the beginning of April on a similar case suggests, strengthening the position of the players. A consumer-friendly judgment of the BGH could potentially trigger a larger wave of lawsuits, according to experts. It is unclear whether a judgment will fall on Thursday.

Court schedule of the BGH

1. The case regarding the obligation of an unlicensed online sports betting provider to reimburse lost bets will be heard by Germany's Federal Court of Justice (BGH) on Thursday.
2. The dispute involves a consumer who participated in sports betting with Tipico from 2013 to 2018, losing over 3700 Euro, and arguing that the bets were unlawful due to Tipico's lack of a valid German license at the time.
3. If the BGH rules in favor of the consumer, it could trigger a wave of similar lawsuits, according to experts, and potentially lead to a more consumer-friendly approach to sports betting processes in Germany.
4. The Federal Court of Justice in Karlsruhe will decide on the reimbursement issue in relation to games of chance and sports betting, which could have significant implications for both the provider and German consumers.

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