Germany's Federal Court of Justice (BGH) is set to deliver a landmark ruling on player claims for damages from historical bets. On June 27, the court will hear a case involving sports betting operator Tipico and Gamesright, which represents a player who lost €3,719 between 2013 and 2018. At the time, Tipico held a license from the Malta Gaming Authority (MGA), but did not have a German sports betting permit, which was only issued in 2021.
After settlement talks between Gamesright and Tipico failed in April, the case could now determine whether players will be able to recoup their historic losses.
The legal status of sports betting in Germany remained uncertain until 2020. During this time, the market was liberalized, but the licensing process could not keep up with the influx of applicants. As a result, no licenses were issued, which created a legal vacuum in the industry and, consequently, an influx of player lawsuits.
Cases of refunds to players have been troubling the German gambling market for years. However, this is the first case of its kind to reach the German Supreme Court. Similar issues have been decided in favor of plaintiffs at the local level.
Earlier this year, the court issued a preliminary legal opinion in a case against Betano . In that case, a player sued Betano for a refund and won at the Higher Regional Court in Dresden. Betano appealed to the BGH, which indicated in its 25-page advisory decision that it would rule in favor of the player, forcing Betano to withdraw its appeal.
While it is unclear whether the BGH will announce its decision today, it is likely to address the issue of statutes of limitations for sports betting cases. Tipico argues that the statute of limitations for bettors' claims should expire after three years, while Germany's highest regional courts generally rely on a statute of limitations of ten years.
The court's advisory ruling did not address the issue of the statute of limitations. If the court upholds the 10-year statute of limitations, sports betting operators could be forced to pay back all losses from illegal sports betting over the past decade.
According to lawyers, the volume of the black market during this period amounted to more than €20 billion. Currently, up to 40,000 cases for compensation of damages are being considered in Germany.
The gaming world's attention will soon turn to Budapest, where the SiGMA Eastern Europe 2024 summit will take place from September 2-4, supported by Soft2Bet.
Source
Welcome to Gambling Consulting Authority (GCA) - Your Strategic Partner in Gambling Industry Advancement
