In the case of Gamesright vs. Tipico, will Germany's Federal Court of Justice (BGH) make a significant decision regarding the refund of sports betting stakes?
The ongoing court battle between litigation funder Gamesright and sports betting provider Tipico is making its way to a new phase. For a while, it was clear that the two parties couldn't reach an agreement on a settlement. Now, the German Federal Court of Justice (BGH) has set a new trial date for June 27, 2024.
The history of the case so far
The BGH was initially expected to deliver a groundbreaking verdict around an issue involving refunds for bets placed with sports betting companies before the German market was regulated. In this specific case, Gamesright GmbH from Hamburg sought €3,719.26 in addition to interest and legal fees from Tipico.
When the relevant district court dismissed their claim in a ruling dated April 28, 2022 (3 C 459/21), Gamesright decided to file an appeal. But the Ulm Regional Court rejected it on May 24, 2023 (1 S 46/22), and only allowed for the case to be heard by the BGH. They had earlier scheduled a hearing date for March 7, 2024. Yet, due to settlement negotiations between the parties, the hearing was subsequently canceled. However, when those talks failed in April 2024, the BGH rearranged the date on the calendar.
It's more than a single case
Hannes Beuck, the founder of Gamesright, expressed confidence in a victory and mentioned that the case was about more than just his own dispute:
'The BGH is now setting a new hearing date. I'm confident it will rule in favor of consumers. [...] It's about a landslide for sports betting providers and significant damage. - Hannes Beuck, founder of Gamesright, source: Sport Presse Portal
Gamesright, along with other companies, acquire customers' legal claims to sue gambling firms concerning a debatable legal situation. Often, these cases don't even go to trial or solely at lower courts.
Experts believe that a decision by the Federal Court of Justice, which has so far failed to materialize in other legal disputes due to earlier out-of-court settlements, could result in lower courts adopting the same viewpoint. It remains undecided whether the decision would support the sports betting companies or the players.
Tipico relies on EU law
Tipico, the other party involved, maintains that the pre-2022 sports betting law in Germany conflicts with EU law. In their response to another lawsuit, the BGH published a 25-page advisory decision pointing out that online sports betting prior to 2022 was not legal.
The plaintiffs took this as a possibility of a decision in their favor by the BGH, but Tipico seems to disagree. A spokesperson for the company stated that their stance remained that the pre-2022 situation in Germany was "contrary to EU law." Since the start, Tipico has been operating with a valid EU license in Malta.
If the BGH rules against the sports betting provider on June 27, 2024, it seems plausible that Tipico may take the case to the European Court of Justice (ECJ).
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Source: www.onlinecasinosdeutschland.com
