Landmark ECJ Decision Opens Door for Player Refunds

The European Court of Justice (ECJ) has issued a landmark ruling that could empower players to reclaim losses from foreign-licensed gambling operators. The decision states that EU countries can prohibit online gambling services, even if those operators hold licenses from other member states, and that players may pursue civil claims to recover their money.

The case originated from a German player who lost funds on two Malta-licensed operators—European Lotto and Betting Ltd (associated with Lottoland) and Deutsche Lotto und Sportwetten Ltd — between June 2019 and July 2021, a time when online gambling was banned in Germany. The player filed a claim in a Maltese court to recover losses, leading the ECJ to interpret whether EU law’s free movement of services principle overrides national prohibitions.

The ECJ ruled that it does not. “EU law does not preclude a member state from prohibiting certain services provided online and authorized in other member states, and from attaching civil-law consequences to that prohibition,” the ruling states. This means players can now seek refunds for losses incurred during periods when gambling was illegal in their home country, regardless of the operator’s licensing jurisdiction.

The ruling also clarifies that Germany’s 2021 transition from prohibition to a licensing regime does not retroactively legitimize earlier activity. Member states can still enforce the legal consequences of past bans, including voiding contracts and allowing players to recover losses. The court further stated that players cannot be automatically held liable for using foreign-licensed gambling sites, placing the responsibility on operators to prove any wrongdoing.

This decision may lead to a surge in refund claims against operators, particularly those based in Malta and Gibraltar. The ruling underscores the limitations of cross-border licensing and could reshape the legal landscape for iGaming operators across Europe.