Lottoland-Related Ruling Enables EU Players to Recover Gambling Losses

A European court has just made a ruling that could send shockwaves across the European gaming sector. The decision saw judges rule against Lottoland in a high-profile case, confirming that EU member states can indeed ban online gaming and that players who lost money to illegal iGaming can sue to recover lost funds.

Judges Ruled in Favor of the Plaintiff

On April 16, the Court of Justice of the European Union ruled in favor of a player who was suing the company due to money he lost playing on Lottoland. At the time, online gaming was not allowed in Germany, where the player was based.

The plaintiff asserted that since Lottoland was not allowed to offer online gaming to German customers legally, it should give him back the money he lost. As a result, he took the matter to a court in Malta. For context, Lottoland holds a license from the Malta Gaming Authority.

Lottoland, like other companies facing similar claims, asserted that the fact that it had an EU operating license preceded local laws.

However, the new ruling confirmed that individual countries are allowed to prohibit certain online gaming products and that even companies licensed at a European level cannot offer their products there.

The court therefore also confirmed that consumers who’ve lost money to such products in regions where they are prohibited can file civil lawsuits in an attempt to recover their funds.

EU Courts Will Have to Keep This Decision in Mind

In the Lottoland case, judges acknowledged the fact that Germany eventually allowed online gambling. However, they also said that the legalization did not change the fact that a ban had been in place at the time when the player in question was losing money playing on Lottoland.

The judges therefore concluded that the regulatory shift did not suggest that the earlier rules were flawed and that the transition to a licensing framework did not change the fact that Lottoland should face consequences for operating prior to the legalization.

Judges also emphasized that players choosing to gamble with an unlicensed operator was not an abuse of rights under EU law.

While Malta has rules to shield its gaming licensees from liability, the ruling of the Court of Justice will serve as an interpretation of the EU law that the Maltese court will be required to take into account when making its own ruling.

The Court of Justice decision will also serve as a binding point of reference to other courts in the European Union.

In any case, this development could spell trouble for gaming operators across Europe, leading to a potential spike in cases where players seek to recover lost funds.