The Court of Justice of the European Union (ECJ) ruled on Thursday that users of online gambling services can sue betting operators for reimbursement of losses if such gambling was prohibited in their home country at the time the bets were placed. This landmark decision, which remains valid even if national laws have since changed, paves the way for a German citizen seeking compensation for losses incurred when online gambling was illegal in Germany, highlighting ongoing legal complexities in the EU's digital single market.
The ECJ acknowledged that online gambling is fundamentally classified as a service that should generally be freely available across borders within the EU and the European Free Trade Association (EFTA). However, the court asserted that the freedom to provide services can be restricted for “consumer protection and the protection of the social order.” It emphasized that online gambling qualifies for such an exemption more than physical betting locations due to its particular risks, including “the permanence of access, the isolation and anonymity of the player, the absence of social control, the potentially unlimited frequency, and its attractiveness to young and vulnerable persons.”
The ruling stems from a case involving a German resident who is seeking compensation in domestic courts for losses on online slot machines and lottery prediction betting between June 2019 and July 2021, a period when such gambling was not legal in Germany. The ECJ clarified that Germany's subsequent relaxation of online gambling laws in July 2021 does not affect the eligibility for refunds for past losses, reinforcing the principle of accountability for historical violations.
Furthermore, the court ruled that “EU law does not preclude ... a civil action for restitution of the stakes lost,” meaning gamblers can seek refunds and may be eligible for them if national courts rule in their favor. This decision could potentially enable other Germans or EU residents in similar situations to reclaim losses from illegal online gambling, though it also underscores the fragmented regulatory landscape and societal challenges posed by the gambling industry within the bloc.
Source: www.dw.com