EU Court Ruling Allows Gambling Refund Claims Against Foreign-Licensed Operators

A groundbreaking ruling from the European Court of Justice (ECJ) has sent shockwaves through the iGaming industry, potentially allowing players to reclaim losses from foreign-licensed operators. The decision confirms that EU countries can ban online gambling services—even when those operators hold valid licenses from other member states—and that players may pursue civil claims to recover their money.

The case stems from a German player who lost funds through two Malta-licensed operators, European Lotto and Betting Ltd (linked to Lottoland) and Deutsche Lotto und Sportwetten Ltd, between June 2019 and July 2021—a period when online gambling was prohibited in Germany. The player sought restitution through a Maltese court, prompting the ECJ to clarify whether EU law’s principle of free movement of services overrides national prohibitions.

The ECJ ruled decisively 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, even if the operator was licensed elsewhere in the EU.

The ruling also addresses the retroactive validity of Germany’s 2021 shift from prohibition to a licensing regime. The ECJ confirmed that member states can still enforce the legal consequences of past bans, including treating contracts as void and allowing players to recover losses from that period. Additionally, the court clarified that players cannot be automatically held responsible for using foreign-licensed sites, shifting the burden of proof to operators to demonstrate any bad faith.

This decision could trigger a wave of refund claims against operators, particularly those based in jurisdictions like Malta and Gibraltar, which have long been seen as gateways to the European market. Operators may now face increased legal risks and financial exposure, as players seek compensation for historic losses.