New EU Ruling Empowers Players to Recover Losses from Illegal Online Gambling
European Court’s Landmark Decision Against Lottoland
Recently, a significant ruling by a European court has the potential to reshape the online gambling landscape across Europe. The court decided against Lottoland, affirming that EU member states have the authority to ban online gambling. Furthermore, the ruling establishes that players who lose money through illegal online gaming platforms can take legal action to retrieve their losses.
Support for the Player in the Legal Dispute
On April 16, the Court of Justice of the European Union ruled in favor of an individual who sued Lottoland over gambling losses incurred while playing on their site. This case arose because, at that time, Germany—where the player resided—had not legalized online gambling.
The player argued that since Lottoland was not lawfully permitted to offer services to customers in Germany, they should be entitled to a refund of the money lost. The lawsuit was filed in Malta, as Lottoland operates under a license issued by the Malta Gaming Authority.
Although Lottoland and similar companies maintain that their EU-wide licenses take precedence over national restrictions, the court clarified that individual countries can prohibit specific online gambling activities. Companies licensed at the European level must still comply with the prohibitions imposed by member states.
The court also confirmed that individuals who suffer losses from gambling products banned in their region are entitled to pursue civil claims to recover their funds.
Implications for EU Member States and Future Cases
The court acknowledged that Germany has since legalized online gambling. However, this change does not affect the validity of earlier bans applicable when the player’s losses occurred.
Judges concluded that the subsequent legalization does not retroactively invalidate the prior restrictions or exempt Lottoland from responsibility for operating unlawfully before the new licensing framework was introduced.
Importantly, the court emphasized that choosing to gamble with an unlicensed operator does not constitute an abuse of EU rights by players.
Although Malta’s regulations generally protect license holders from liability, Maltese courts are now required to consider this ruling when adjudicating related cases. Additionally, this decision will guide other courts throughout the European Union as a binding precedent.
This development poses potential challenges for online gambling operators across Europe and may lead to an increase in legal claims from players attempting to reclaim lost money.
