EU Court Affirms German Player’s Right to Recover Gambling Losses
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The Court of Justice of the European Union (CJEU) delivered a pivotal ruling on Wednesday, clarifying that EU member states possess the authority to restrict certain online gambling operations, even if these services are provided by operators licensed in other EU countries. This significant judgment allows consumers to reclaim losses incurred from gambling contracts that violate national regulations.
In a landmark case designated C-440/23, the court ruled against Lottoland, a Malta-licensed operator, concerning a German player’s request for reimbursement of losses sustained between June 2019 and July 2021, during which Germany implemented a ban on most online gambling forms. According to the court, any gambling agreements made in violation of national laws are deemed null and void under EU regulations. Furthermore, the court established that pursuing restitution does not constitute an abuse of EU rights by players.
Lottoland, which operated under the auspices of the Malta Gaming Authority (MGA), had offered virtual slots and lottery draw betting in Germany despite the existing restrictions. The operator contended that its MGA license and the EU’s provisions for free service provision should exempt it from these national prohibitions. However, the court dismissed this argument, asserting that holding a license from one EU nation does not allow an operator to serve customers in another country where such products are banned.
Additionally, the judges examined Germany’s subsequent legalization of online gambling in July 2021, maintaining that this development did not retrospectively validate Lottoland’s earlier activities or invalidate the player’s claim for restitution.
This ruling sets a binding precedent for all 27 EU member states. In recent years, German civil courts had issued numerous decisions favoring players seeking to recover funds from unlicensed operators, but these proceedings were stalled pending clarification from the CJEU on relevant EU law. Consequently, thousands of pending claims can now move forward, with legal experts estimating that refunds could total billions of euros within the German market alone. Similar claims are anticipated from players in Germany and Austria targeting Malta-based operators.
The decision regarding Lottoland is also connected to a prior CJEU ruling from January 2026, which acknowledged that players can hold company directors personally accountable under the laws of their respective countries. A separate ongoing case involving Tipico has also captured attention, with expectations for a conclusive ruling later this year regarding unlicensed sports betting operators and their potential obligation to refund collected stakes.
This ruling not only reshapes the landscape of online gambling across the EU but also intensifies scrutiny of the regulatory frameworks governing this space. The implications could be far-reaching, especially for operators licensed in jurisdictions like Malta that have become significant players in the iGaming sector.
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