The European Court of Justice (ECJ) has opened proceedings on a German player loss case on Wednesday (April 9) in a legal wrangle that could have massive ramifications for the gambling industry and bettors.
The first hearing of Case C-440/23 commenced a delicate, protracted legal matter, centered around whether courts in Malta can measure Germany’s compliance with EU law.
In particular, a crucial issue in the ECJ case is the legality of Germany’s previous ban on online casino gambling under the German Interstate Treaty on Gambling 2012 (GlüStV 2012).
That legislation has since been replaced by a new law that oversees most online gambling platforms, but a legal ruling that the former ban breached EU law could have a significant impact.
If such a ruling is made by the ECJ, it could also dismantle many ongoing player claims, with thousands of pending reimbursement cases in progress.
As reported by Next, this is the first time Europe’s highest court has heard representations on the GlüStV, described by lawyer Istvan Cocron as a matter of “great excitement”.
What is the legal detail?
Previously, a German bettor sued Malta-based secondary lottery operator, Lottoland, to attempt to recover gambling losses.
Later, the claim was taken over by a German lawyer who had been pushing the case on the small Mediterranean island, and now at the ECJ.
This is where the tangled web becomes apparent.
Some legal opinions believe the pursuit in Malta was a considered approach to work around enforcement restrictions under the country’s controversial Bill 55.
That legislation states Maltese courts will not enforce foreign judgments against entities holding a Maltese gambling license and operating in adherence to local laws.
However, Bill 55 does not offer such protections to judgments made in Malta’s own courts.
A crucial issue of the overall case is the suitability and competence of Maltese courts to evaluate German law against EU law, with the German state not directly involved in the wrangle.
Cocron added that: “The Commission repeatedly emphasised that such cases must be handled with the utmost care,” given the potential for major implications for the European gambling market.
The opening hearing concluded without a clear outcome, with observers adding a feeling of unpredictability on the eventual ECJ ruling.mv
Image credit: Grok/X
