Lottoland-Linked Ruling Allows EU Players to Recover Gambling Losses

(AsiaGameHub) –   A recent ruling by a European court could significantly impact the European gaming industry. In a prominent case, judges ruled against Lottoland, affirming that EU member states have the authority to prohibit online gaming and that players who lost money to illegal iGaming operations can pursue legal action to reclaim their losses.

Judges Ruled in Favor of the Plaintiff

On April 16, the Court of Justice of the European Union sided with a player who was suing Lottoland for money lost while gambling on the platform. At the time of the player’s losses, online gaming was prohibited in Germany, where the player resided.

The plaintiff argued that because Lottoland was not legally permitted to offer online gaming to German customers, the company should refund his lost funds. He subsequently initiated legal proceedings in Malta, where Lottoland holds a license from the Malta Gaming Authority.

Lottoland, along with other companies facing similar claims, contended that their EU operating license took precedence over local regulations.

However, the new ruling clarified that individual countries retain the right to ban specific online gaming products, and that even companies with a European-level license cannot offer their services in such prohibited territories.

Consequently, the court also confirmed that consumers who have lost money on these prohibited products in regions where they are banned can file civil lawsuits to seek the recovery of their funds.

EU Courts Will Have to Keep This Decision in Mind

In the Lottoland case, the judges acknowledged that Germany has since legalized online gambling. Nevertheless, they stated that this subsequent legalization did not invalidate the ban that was in effect when the player incurred his losses on Lottoland.

The judges concluded that the regulatory change did not imply that the prior rules were flawed, and that the transition to a licensing framework did not absolve Lottoland of responsibility for operating prior to legalization.

The judges further emphasized that players who chose to gamble with an unlicensed operator were not engaging in an abuse of rights under EU law.

While Malta has regulations in place to protect its gaming licensees from liability, the Court of Justice’s ruling will be interpreted as EU law and must be considered by the Maltese court when making its own decision.

The decision from the Court of Justice will also serve as a binding precedent for other courts across the European Union.

In summary, this development could pose significant challenges for gaming operators throughout Europe, potentially leading to an increase in legal actions by players seeking to recover their gambling losses.