Austrian Court Orders Player to Return Winnings from Unlicensed Operator

Player Ordered to Return Winnings to an Unlicensed Operator

In a significant legal development within the Austrian iGaming sector, the country’s Supreme Court has ruled on a contentious case involving a player and an unlicensed online operator. This ruling marks a turning point in the ongoing legal battles surrounding Austria’s strict gambling regulations. The case has drawn attention due to its implications for both players and operators engaging in unauthorized online gambling activities within the country.

The dispute began when a player was ordered to return a portion of their winnings to an unlicensed operator. This decision stemmed from the court’s finding that both the player and the operator had violated Austrian gambling laws. Notably, Austria only permits licensed operators to offer online casino services, making any winnings obtained from unlicensed platforms subject to legal scrutiny.

In this landmark case, the court did not fully side with either the player or the operator. The operator initially sought to recover the full sum of €7,162, which the player had won between May and July 2020. However, the court ruled that only a portion of these winnings, amounting to €626.60, had been obtained illegally. Consequently, the player was ordered to return this sum to cover the operator’s legal fees.

Legal Consequences and Winnings Forfeiture

This ruling underscores the legal complexities surrounding unlicensed gambling in Austria. The court emphasized that Austrian gambling laws do not offer protection to either party in such cases. The decision reflects a broader regulatory aim to curtail illegal gambling activities and to prevent gambling addiction.

Importantly, the court made it clear that its ruling should not be seen as an endorsement of the operator’s actions, but rather as a measure to uphold the legality of gambling contracts within the country.

The case also serves as a reminder to players that engaging with unlicensed operators can lead to legal consequences, including the potential loss of winnings. The court’s ruling is likely to deter future claims from players seeking to recover losses incurred on illegal platforms, as it highlights the risk of being ordered to return winnings obtained under such circumstances.

Potential Impact on the German Market

This Austrian ruling may have implications beyond the country’s borders, particularly in Germany, where a similar case is currently under consideration. The case in Germany, which involves sports betting operators, has been referred to the European Court of Justice (ECJ). The outcome of the ECJ’s ruling could influence how German courts handle disputes involving unlicensed gambling operators and player losses.

Much like in Austria, German operators have been facing lawsuits from players seeking refunds for losses incurred before the enactment of the State Treaty on Gambling. While some of these claims have been dismissed, others have been successful, leading to ongoing legal uncertainty in the market. The ECJ’s decision, expected in the near future, will likely provide clearer guidance for both players and operators in Germany.