Landmark EU Court Ruling in Lottoland Case Could Trigger Waves of Player Refund Claims
According to a ruling by the European Court of Justice (ECJ), EU legislation does not prevent member nations from outlawing certain online gambling services, even if those operators have licenses from another member state.
Additionally, it confirmed that, in cases where those services were illegal in the consumer's home country, consumers may, in theory, pursue damages through civil lawsuits against operators.
Operators are likely to be concerned about the verdict since it puts players in a better position to recover prior losses.
Additionally, it is likely to have broader effects for online gambling hotspots like Gibraltar and Malta, highlighting the fact that licenses granted there do not always provide access to the larger European market.
A German Player Files a Lawsuit for Losses
The action started when a German player lost money between June 2019 and July 2021 through two Malta-licensed operators, Deutsche Lotto und Sportwetten Ltd. and European Lotto and Betting Ltd. (connected to Lottoland), at a period when German law usually forbade online games of chance.
In an attempt to recover his losses, the player launched a civil lawsuit against the firms with a Maltese court, which sought advice from the ECJ.
The court specifically questioned whether national laws in cases where an operator has a license from another member state are superseded by the fundamental EU concept that guaranties the free movement of services across the Single Market.
The idea of free movement of services is not absolute, as confirmed by the European Court of Justice's ruling that it does not.
"EU law does not preclude a member state from prohibiting certain services provided online and authorized in other member states, and from attaching civil-law consequences to that prohibition,” reads the ruling.
“A consumer may bring a claim for restitution of lost stakes against operators established in another member state where the games of chance at issue were prohibited in the consumer’s Member State of residence,” it adds.
Everything depends on the operator.
Furthermore, the European Court of Justice affirmed that Germany's shift from prohibition to regulation did not absolve the record for actions taken prior to 2021.
The European Court of Justice (ECJ) clarified that member states are still able to implement the legal ramifications of a prior ban, such as declaring contracts null and void and permitting players to recoup losses sustained during that time.
Additionally, the ECJ refused to hold the player automatically accountable. Even if you intentionally use a gaming site with a foreign license, it does not constitute an abuse of EU legislation. Under domestic regulations, the operator and national courts are responsible for determining whether or not there was bad faith.
