The Court of Justice of the European Union has determined consumers may bring forward claims for restitution of lost stakes against operators over their historical grey market presence.
In a judgment issued today, 16 April, which crucially is not the determiner of any ongoing court cases, it was ruled EU law did not preclude such claims.
The issue relates to various players aiming to recover lost stakes from operators licensed outside the respective EU member state in which they reside.
For example, in Austria, individuals have issued legal proceedings to recover funds from Malta-licensed operators.
The issue has also been particularly pertinent in Germany, with the Court of Justice of the European Union referencing a cases involving Lottoland in its statement.
Germany regulated its market in 2021, with cases relating to historical gambling prior to that date.
The Court of Justice of the European Union said: “An action for restitution of the stakes lost is not precluded by EU law.
“The nullity of the contract and its effects come within the scope of the applicable national law, in the present case German law.
“In so far as the legislation is compatible with EU rules on the freedom to provide services, that nullity is the consequence of the contract’s illegality.
“The consumer’s participation in those games of chance, despite the existence of a licence in another member state, is not sufficient to establish the existence of an abuse of rights within the meaning of EU law, since any finding of bad faith in that regard is a matter of national law.”
The judgment also noted that any contract between a consumer and an operator established and licensed in another EU member state would not be void under EU law.
The ruling continued: “The subsequent replacement in Germany, from 1 July 2021, of a general prohibition by a system of prior approval does not, in itself, affect the consistency or validity of the earlier regime, since such a development may form part of a policy of controlled expansion aimed at steering players towards an authorised gambling offer.
“Similarly, the introduction of a transitional period does not preclude drawing, in respect of the earlier period, the legal consequences of the prohibition then in force.”
The court judgment comes less than a month after Advocate General Nicholas Emiliou issued an opinion that indicated players could reclaim stakes.
Emiliou’s note was linked to an ongoing case with Tipico, whereby claimants are pursuing stakes placed before Germany regulated in 2021.
The court and Emiliou’s opinion do not hold any final decision power. Cases remain ongoing.
However, Malta’s Bill 55, which essentially prohibits Malta-licensed operators from facing legal action against them for activities in other member states, is now back under the microscope.
The post Malta’s Bill 55 back in spotlight as EU court argues players can pursue claims first appeared on EGR Intel.
Non-binding ruling says players are able to reclaim stakes in historical grey markets, with Germany cited as a key example
The post Malta’s Bill 55 back in spotlight as EU court argues players can pursue claims first appeared on EGR Intel.