Online casino sues player in Austria: winnings of over 7,000 euros recovered
In Austria, a player has sued the online casino Bet365 to recover her gambling losses. This action is based on the fact that courts have ruled contracts between players and online casinos null and void if they are not licensed in Austria. However, in this case, Bet365 has launched a counterattack, suing the player and creating an intriguing precedent.
Nullity Applies Both Ways
The Austrian STANDARD reported on Saturday that the Supreme Court (OGH) has ruled that Austrian online casinos without a license can also reclaim players' winnings, just as players can for their losses.
The corresponding judgment under case number 8 Ob 21/24g was made at the end of June 2024 but has only now attracted media attention.
For operators, this means that in any lawsuits, a set-off of winnings and losses must occur. Furthermore, gambling providers could potentially target players who have made a profit.
Plaintiff's Argument Rejected by Court
The court rejected the plaintiff's argument that an illegal gambling provider should not be able to make claims. After offsetting winnings and losses, the woman must now repay a sum to Bet365.
According to information from the specialist magazine iGaming Business, the player won €7,162 between May and July 2020 [article in English]. However, she only has to repay €626.60 to the gambling provider.
Bill No. 55 Protects Maltese Online Casinos
The recovery of casino losses in Austria was driven by a 2021 ruling in which the OGH declared contracts with unlicensed online casinos null and void.
However, the illegal gambling operators in Austria usually operate from Malta, where a controversial law (Bill No. 55) has been in effect for about a year, protecting locally based iGaming companies from legal pursuit from abroad. Therefore, many of these cases are still pending.
The Big Wait for the ECJ
The European Court of Justice (ECJ) could make some key decisions this year. On the one hand, this concerns the legality of Bill No. 55, which is already being reviewed by the European Commission.
On the other hand, media attention is likely to focus on a case from Germany: The ECJ must decide whether the provider Tipico was illegally active in Germany, despite actively seeking a license.
A ruling from the ECJ would also be relevant for Austrian gambling providers, who also rely on the freedom to provide services within the EU and are eagerly awaiting the announcement of the decision.
In light of the Austrian Supreme Court's ruling, it was revealed that Austrian online casinos without a license can also seek to reclaim players' winnings, not just the other way around. This was highlighted in a case where the court rejected a player's argument and ordered her to repay a portion of her winnings to Bet365, despite the fact that her initial lawsuit was based on the casino's lack of licensing in Austria.
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