Possible loss compensation for sports betting crisis heading to European Court of Justice: Is the sportsbook company set to celebrate?
The German Federal Court of Justice (BGH) has referred a significant case to the European Court of Justice (ECJ) for clarification, seeking to establish the extent of the freedom to provide services within the European Union (EU) in the context of sports betting. This move comes as Tipico, a well-known sports betting provider, has been seeking clarification from the ECJ on the matter.
The dispute, which has never reached the final instance, revolves around a player's claim against Tipico, with the player's case being transferred to the company Gamesright. If the BGH had decided in Gamesright's favour, they could potentially enforce such claims en masse.
Mathias Dahms, President of the German Sports Betting Association (DSWV), has welcomed the referral to the ECJ by the BGH. Many gambling providers, including Tipico, have been relying on the freedom to provide services within the EU, even without a national license, since the 2016 ECJ ruling.
In 2016, the ECJ ruled in favour of sports betting providers, declaring the criminal prosecution of unlicensed providers in Germany as unlawful if they had applied for a license. However, the current case is on hold until the ECJ provides a clarification on the union law questions.
Ronald Reichert, Tipico's lawyer, is "very confident" that the ECJ will decide analogously to the 2016 ruling. The question at hand is whether sports betting providers with a seat in the EU can offer their services in other EU countries without a license in the respective countries.
The lack of a license in the current Tipico case could lead to the invalidity of contractual relationships with the players, a point that the ECJ must now decide on. It remains unclear whether there will be a general ruling in one direction or the other, or if future civil law decisions in this area will continue to require a case-by-case assessment.
The final verdict was expected on 25.07.2024 by the Federal Court of Justice (BGH). The ECJ's clarification is eagerly awaited, as it could have far-reaching implications for the sports betting industry across the EU.
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