Potential Legal Threat from Recommendation by the Federal Court of Justice on Sport Betting Losses?
In a landmark legal battle, an Austrian sports betting company, sponsor of the football European Championship in Germany this year under its Betano brand, is set to face the German Federal Court of Justice (BGH) on May 2nd, 2024. The case, with file number I ZR 53/23, revolves around the legality of online sports betting in Germany before 2022.
The BGH's preliminary ruling, issued before the scheduled hearing, suggests that contracts between sports betting providers and their customers before 2022 might be deemed null and void. This could potentially lead to refunds of betting losses for consumers, if a final verdict is issued in their favour.
However, the specifics of the BGH's preliminary ruling regarding the legality of online sports betting in Germany before 2022 remain unclear, as the provided search results do not contain explicit information on this matter. The legal landscape of online sports betting in Germany before 2022 was complex and partially restrictive, with the BGH issuing preliminary rulings and referrals concerning the interpretation of German laws regulating sports betting.
The 2021 Interstate Treaty on Gambling (Glücksspielstaatsvertrag 2021) aimed to regulate online sports betting more comprehensively, but this treaty came into effect after many of the early BGH rulings. To obtain a precise summary of the BGH's preliminary ruling content before 2022, one would typically review the BGH rulings and the related CJEU referrals concerning online sports betting legality in Germany during that period.
If a final verdict is issued in favour of consumers, it could potentially lead to significant consequences. Taxes would have to be refunded, and the complex licensing entanglement at federal and state level before 2021 would have to be untangled. Moreover, sports betting providers could be driven into insolvency, indirectly benefiting the black market.
It is worth noting that many sports betting providers that were active before the legalization of online gambling in Germany had their registered offices in Curaçao, Gibraltar, or Malta. These companies may use every legal means to avoid a wave of lawsuits. In fact, experts rate the chances of proceedings against gambling providers from Malta as very low due to a controversial law protecting Maltese companies from the enforcement of foreign judgments.
If the BGH does not issue a general verdict, sports betting providers would have no reason to appeal to the European Court of Justice (ECJ). However, it seems realistic that sports betting providers will not surrender easily to a potential onslaught of lawsuits. The Munich law firm Hambach & Hambach has emphasised that a general verdict in favour of consumers could have far-reaching implications for the industry.
The BGH's preliminary ruling can be understood as a guideline for lower courts. As the legal saga unfolds, the German sports betting industry awaits the BGH's final verdict with bated breath, as it could shape the future of online sports betting in the country.
What if the BGH's final verdict favors consumers, leading to potential refunds of betting losses and significant repercussions such as tax refunds, untangling licensing issues at both federal and state levels, and potential insolvency of sports betting providers? Given the complex legal landscape of online sports betting before 2022 and the involvement of overseas betting companies with Maltese headquarters, the legal battle may see various strategies to avoid lawsuits. If the BGH does not issue a comprehensive verdict, sports betting providers might choose not to appeal to the European Court of Justice, yet they are unlikely to surrender easily to potential legal challenges. The BGH's decision could serve as a crucial guideline for lower courts, shaping the future of online sports betting in Germany. Moreover, this legal battle has broader implications for policy-and-legislation and general-news, with potential impacts on sports, sports-betting, and politics.
