Germany’s Fight over Player Refund Claims Reaches the EU’s Highest Court

The long-running dispute over whether German gamblers are entitled to recover losses from unlicensed sports betting operators could be nearing a resolution. The European Court of Justice (ECJ), based in Luxembourg, has initiated oral hearings in a case that could significantly reshape the legal landscape for players and betting companies across the EU.

Neither Side Is Willing to Back Down

A lawsuit filed in Germany against Tipico, one of Europe’s largest sports betting entities, stands at the heart of the ongoing legal battle. The plaintiff argues that bets placed before 2020, when Tipico obtained its German license, had been placed under invalid contracts and therefore should be refunded. The German Federal Court of Justice (BGH), which was hearing the case, decided last year to refer key questions to the ECJ, temporarily pausing the proceedings.

As the legal battle intensified, the case has far exceeded the single dilemma it originated from. Thousands of German gamblers have brought forth similar claims, encouraged by various law firms arguing that the absence of licenses provides legal grounds for reimbursement. These claims cite German legislation that requires a valid permit for a gambling contract to be enforceable.

Tipico and other Malta-based gambling companies reject these claims, insisting they have been acting lawfully under the freedom to provide services across EU borders. They argue that Germany’s licensing regime, plagued by inefficiencies and opaque procedures, effectively blocked foreign companies from fair access to the market, violating EU rules.

The Court’s Decision Could Shake Up Europe’s Gambling Sector

Earlier this month, ECJ Advocate General Nicholas Emiliou delivered an opinion that could influence the court’s verdict. He concluded that the seeking of reimbursement for illegal gambling is not an abuse of EU law, a view that favors players. While his opinion is not binding, past precedent has demonstrated that the Advocate General’s statements carry significant weight.

Luxembourg judges must decide whether Germany’s ban on unlicensed betting can override EU service freedoms, even if the nation’s licensing process may have been non-compliant with European transparency requirements. Should the ECJ side with the consumers, the impact on operators could be immense. Billions of euros may be at stake as betting companies are potentially forced to return years of losses to players.

A broad ruling favoring players could have significant implications, spilling over to neighboring jurisdictions where licensing regimes were delayed. Industry experts agree that a narrower decision would be more likely, limiting the fallout to Germany. Whatever the outcome, the ECJ’s decision will mark a pivotal moment for Europe’s gambling industry with significant implications for operators and consumers.