The judicial decision on sports wagering losses in federal court potentially initiates a series of legal disputes?
Gamblers consistently criticize supposedly unlawful betting operators, yearning for compensation of their losses. The German Federal Court of Justice (BGH) has stepped in and proposed a course of action. However, the ultimate decision is yet to be made.
Betano dispute heads to BGH
The proceedings relating to the case reference I ZR 53/23 are set for deliberation by the BGH on May 2, 2024. It concerns a legal dispute against an Austrian sports betting firm, which will serve as a sponsor of the 2024 UEFA European Football Championship in Germany under the Betano tagline.
Prior to the scheduled hearing date, the BGH has released an extended advisory judgment, albeit not a definitive verdict, which could serve as a guide for lower courts.
What does the BGH's advisory judgment suggest?
In its advisory judgment, the BGH firmly asserted that online sports betting was not legally permissible before 2022.
Countless providers ventured into the market under the assumption that they could skirt the legal gray area in Germany by obtaining European licenses, predominantly between 2012 and 2021.
However, the BGH's advisory judgment implies that contracts between sports betting providers and their clients before 2022 could be deemed null and void. As a consequence, repayment of squandered bets might be possible.
General ruling draws criticism
The Munich law firm Hambach & Hambach has informed the industry magazine iGaming Business that the BGH might not be acting in the best interests of the German state by issuing a broad ruling in favor of consumers.
This could potentially drive today's legal providers into bankruptcy, thereby indirectly benefiting the black market. Moreover, taxes would have to be reimbursed, and the intricate licensing framework predating 2021 would require untangling.
Plenty of providers operating before the legalization of online gaming in Germany maintained their headquarters in Curaçao, Gibraltar, or Malta and relied on the EU's freedom to offer services.
Experts estimate the likelihood of successful lawsuits against gaming providers from these nations to be quite bare. One reason for this is a contentious law that safeguards Maltese companies against the enforcement of foreign judgments.
The final verdict has yet to be pronounced
The BGH has acknowledged that a conclusive decision still remains to be made. A conclusive decision can only be rendered if a trial takes place, as planned in the Betano case on May 2, 2024.
However, numerous trials have been cancelled at short notice in the past, and the parties have reached a settlement. Skeptics argue that this could be a practice to avoid a conclusive judgment that might establish a precedent.
Furthermore, it's essential to remember that sports betting providers can challenge the decision in the European Court of Justice (EuGH). Without a comprehensive BGH ruling, there would be no reason for such a challenge. However, it seems plausible that sports betting providers will utilize all legal avenues before succumbing to a wave of litigations.
In light of the ongoing dispute, some German gamblers might be interested in challenging their losses at online casinos operating in Germany before 2022, given the BGH's advisory judgment suggesting that contracts made during that period could be null and void. Furthermore, the final verdict regarding the Betano case, scheduled for May 2, 2024, could potentially set a significant precedent for online casinos in Germany.
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