ECJ: Betting providers without a license must pay back stakes

Luxemburg – An advocate general of the European Court of Justice (ECJ) has spoken out in favor of betting providers without a license having to pay back lost stakes. The verdict is expected to come in a few weeks. The background to the legal dispute: a player’s lawsuit against the betting provider Tipico.

Tipico active for years without permission

The company, based in Malta, offered betting for years without German permission. It only received the license in 2020. The player wants his bets back – the contracts until 2020 are void.

Tipico had argued that it had not received a license due to deficiencies in the German procurement process. But the ECJ expert made it clear: Even then, no betting provider can simply start trading without approval. This poses serious risks for players, he warned.

Authorities would then have to be liable

According to the report, there is only protection against repayments if the authorities have clearly and unequivocally assured the provider that they are allowed to work without a license. In this case they would have to be liable for player losses.

According to the plaintiffs, the procedure is crucial for thousands of reclaims in German courts.

Tipico also feels confirmed

A Tipico spokesman explained: German authorities have agreed to this Pursue assures that under the given circumstances of a licensing procedure that violates EU law, the offer can be maintained. The expert sees it like the betting provider: Repayments are disproportionate if the organizer was wrongly withheld a license and the authorities tolerated the offer without a license.

The BGH in Karlsruhe had suspended the case and is now waiting for the ECJ decision.