Verdict on refunding lost bets
On March 7th, the Federal Court of Justice (BGH) announced an important ruling. The issue was whether a sports betting provider that did not have a license in Germany had to return lost bets. Many people were excited because the ruling could change the rules for gambling in Germany.
A player lost 2013 euros on the German Tipico website between 2018 and 3719,26. He wanted his money back because Tipico didn't have a license in Germany at the time. He said he didn't know that gambling was banned in Germany. He had already lost in court, but he was hoping for a victory before the Federal Court of Justice.
Tipico's point of view and the legal situation
Tipico now had a German license. The company said the ban on sports betting in Germany violated EU law. Until 2020, Tipico was able to offer its product in Germany thanks to a license from Malta. It was unclear whether players would get their money back. Malta has passed a law that protects bookmakers on the island from repaying gambling losses.
Conclusion
The Federal Court of Justice rejected the plaintiff's lawsuit and appeal. It decided that the plaintiff has no right to repayment in accordance with Section 812 Paragraph 1 Sentence 1 Case 1 of the Civil Code (BGB). The defendant did not receive the plaintiff's money unfairly because the sports betting contracts are valid. Although the defendant has violated certain laws, this does not render the contracts invalid. Violation of a prohibitory law will only invalidate the contract if the law cannot otherwise be enforced and the contract should not be accepted.
This was not the case here because the defendant had applied for a license and had met the requirements. The lack of a license was because the licensing process violated EU law. Therefore, the violation could not be punished under criminal or administrative law. This means that breaching the gambling laws will not result in the betting contracts being invalid.
