Tipico is experiencing pressure, yet celebrating a partial victory!
The Highest German Court (BGH) held its initial hearing on the legitimacy of pre-treaty sports betting activities by Tipico on June 27, 2024. After multiple postponed hearings, the BGH issued a preliminary ruling in favor of Tipico player who experienced losses during a time when Tipico was not licensed in Germany.
Plaintiff was unsuccessful in the initial trial
As reported by Der Spiegel, the plaintiff wagered on sports with Tipico from 2013 to 2018 and incurred total losses exceeding 3,700 euros. Since Tipico had applied for a German license during this period but only received approval in 2020, the plaintiff contested the validity of their contractual agreement with the sports betting provider and demanded the return of their losses.
However, the plaintiff failed to obtain any rights in the initial trial. The Regional Court of Ulm rejected their arguments, concluding that Tipico had no obligation to reimburse their losses. Although there were breaches of the applicable State Gaming Treaty, these violations did not invalidate the contractual relationships with the customers.
BGH may view the situation differently
As early as April, it appeared that the BGH might adopt a different perspective. In a detailed preliminary ruling, the BGH took a consumer-friendly stance. The trial against Tipico and sponsor Betano, who reached an out-of-court settlement with the plaintiff, did not proceed to the BGH.
Following the initial hearing, the BGH upheld its preliminary ruling in favor of the plaintiff, declaring that unlicensed contracts between players and bookmakers were void.
However, Judge Thomas Koch acknowledged that certain issues might require referral to the European Court of Justice (ECJ). During the hearing, new elements emerged that had not been previously considered legally.
Tipico's lawyer is pleased with the hearing
Although the BGH's preliminary ruling provisionally favors the plaintiff, Tipico's lawyer, Ronald Reichert, expressed satisfaction after the hearing. The possibility of a referral to the ECJ was discussed, which Tipco considered essential:
I have the impression that the Senate is seriously considering referring to the European Court of Justice, and that was what we deemed absolutely necessary. – Ronald Reichert, Tipico's lawyer, source: Spiegel
Tipco appears to have higher chances before the ECJ. A Munich lawyer also argued in favor of involving the ECJ, as regional courts had apparently attempted to exclude European law without explanation.
Why does Tipco desire an ECJ ruling?
In Tipco's view, the bookmaker could not have been issued a license to operate sports betting in the mentioned period because it was unfairly denied. Tipco argues this based on EU law.
Lawyer Christian Rohnke also endorsed Tipco's perspective during the BGH hearing. He posed the question of whether one could penalize a provider for failing to obtain a license due to union law violations.
The final verdict has yet to be made.
Despite rumors circulating online following yesterday's hearing that a decision has been reached against Tipco, this is not the current status.
According to the official statement by the BGH, the verdict will be announced on July 25, 2024. However, it appears likely that the BGH may lean towards a decision in favor of the plaintiff based on the presented arguments.
Nevertheless, the final judgment, which could establish a precedent for thousands of similar cases, has not yet been handed down. It remains to be seen whether the ECJ will deviate from the BGH's previous stance during a potential hearing.
The plaintiff's loss of the initial trial has sparked interest in the BGH's final ruling, as they issued a preliminary ruling favoring the plaintiff and declaring unlicensed contracts between players and bookmakers void.
The BGH's preliminary ruling has opened the possibility for Tipico to seek a more favorable decision at the European Court of Justice (ECJ), as they believe they were unfairly denied a license during the relevant period due to EU law violations.
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