Betano Halts BGH Hearing and Consents to Refund – Implications for the Sports Betting Sphere
A scheduled court hearing for today (02.05.2024) involving Betano, a sports betting provider, was unexpectedly canceled. The company was to defend against repaying 12,000 euros to a customer who incurred betting losses in 2018.
Pending Decision
Before the cancelled hearing, the Federal Court of Justice (BGH) released a 25-page reference decision about sports betting online being legal in Germany prior to 2022. The BGH's verdict presents a challenge for providers like Betano, which had no legal license to operate in Germany during the period when the loss occurred.
Given this fact, Betano's chances of winning the case were slim, possibly motivating the company's management decision not to proceed with the case in the BGH.
Previously, Betano filed an appeal in response to the Dresden Higher Regional Court's ruling that it must reimburse the customer €12,000 for their losses. Since the provider has now accepted the lower court's ruling, a definitive judgment on whether sports betting providers should reimburse customer losses prior to obtaining a license has yet to be established.
Potential Consequences for Bookmakers
During the time period at issue in the current lawsuit, Betano and many other companies used the freedom to provide services across the European Union. With such freedom, the legal consequences of their actions raised questions about the affected bookmakers' potential insolvency.
The issue hinges on those who suffered losses being the ones able to initiate legal action. This could favor companies operating illegally and face limited German legal repercussions. In cases of providers from Europe, enforcing a judgment is already a challenge.
More Court Decisions to Come
The sports betting provider Tipico had its own BGH hearing date scheduled for March 2024 canceled due to attempts at an out-of-court settlement with Gamesright. However, if these negotiations fail, Betano may have to appear in court after all.
Additionally, the Erfurt Regional Court intends to refer the matter to the European Court of Justice (ECJ) to determine the compatibility of German legal interpretation with EU law. This may alter the arguments of companies like Betano relying on the freedom to provide services within the EU.
In the interim, it remains unclear whether a landmark ruling regarding reimbursement of betting debts may soon be issued. With the outcome and impact on regulations appearing uncertain, the situation remains intriguing.
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Source: www.onlinecasinosdeutschland.com
