Illegal gambling at betting providers like Tipico? The company has not had a German betting license for years. Now players can claim back their losses.
The 2024/25 Bundesliga season is starting – the sports betting providers are getting ready. You have long been able to bet on the next German champion with providers such as Tipico or bwin. This has also been possible on the Internet for years – but was probably illegal for a long time. A potentially groundbreaking case is currently being heard in court. If the betting providers lose, thousands of people could get their money back that they lost online. Providers such as Tipico seem to know this. They are using delaying tactics, say legal experts.
No German license: Was sports betting at Tipico illegal?
Specifically, it concerns the case of a plaintiff who had been betting online for years, which was being dealt with at the Federal Court of Justice (BGH). Between 2013 and 2018, the man lost a total of 3,718.26 euros on online sports betting with the provider Tipico. Now he wants his money back. He argues that Tipico did not have a German license for online sports betting during this period. The company only had a concession from the Maltese gambling supervisory authority. This only changed nationwide in 2021, when the new State Treaty on Gambling came into force.
Despite its lack of a license, Tipico offered bets on football, tennis and ice hockey, which could have been illegal. The plaintiff’s side argues that the betting contracts between the plaintiff and Tipico were invalid. Tipico is based in Malta, a EU-Land. The case is now going to the European Court of Justice (ECJ).
Sports betting in Germany: “We advise a dentist who gambled away a million euros”
It will probably take up to a year for the ECJ to reach a ruling, as the lawyers of the Goldenstein Law Firm in conversation with IPPEN.MEDIA explain. Lawyers Claus Goldenstein and Alexander Voigt say they represent almost 5,000 clients in the reclaiming of gambling and betting losses. “For example, we advise a dentist who lost a million euros,” says Voigt. On average, clients are involved in a claim of 34,000 euros.
The law firm is already involved in the diesel scandal Volkswagen with more than 65,000 lawsuits. VW used a delaying tactic at the time, which she has now observed at Tipico. “VW only ever looked at the statute of limitations. Their strategy was: anyone who doesn’t sue is a winner,” says Goldenstein. The company was aware that the prospects were poor. This also applies to Tipico. “Tipico knows that they won’t win,” says the lawyer.
The company was therefore determined to ensure that the case ended up before the ECJ. The calculation behind this was clear: “Tipico is playing for time and wants to prevent a landmark ruling for as long as possible so that as many affected gamblers as possible can delay their lawsuits and allow existing claims to expire,” said Goldenstein. “This saves the entire betting industry millions every day that would actually go to the injured gamblers.”
Tipico court dispute over gambling license
The ECJ is to decide whether the freedom to provide services under EU law prevents a provider based in another EU country from reimbursing losses from illegal sports betting. Tipico assumes that its offer is legal in Germany even with a Maltese gaming license. Tipico is relying on the freedom to provide services under EU law and is demanding that the lawsuit be dismissed. Tipico’s lawyer Ronald Reichert is already “very confident” that the ECJ will interpret Union law in favor of the betting provider. The BGH had positioned itself more in the interests of consumers.
Tipico claims that it has fulfilled all the content requirements for the issuance of a German online sports betting license and should therefore have received a license for this offer before the new State Treaty on Gambling. Lawyer Voigt disagrees. “If you don’t have a gambling license, you are not allowed to offer bets in Germany.” But it doesn’t matter whether all the requirements for the issuance of a license were met. No license, no offer. “It’s that simple.” The lawyer draws a comparison with road traffic: “If you could get a driver’s license but don’t have one yet, you’re not allowed to drive either.”
More and more gambling addicts in Germany: “Drives customers into the next bet”
According to the law firm, the fact that Tipico did not receive this license is also due to the betting provider’s offer. Tipico and other sites advertised and continue to advertise so-called live bets. This allows you to bet on certain events online. It’s not just about the next goal, but also about decisions such as the next throw-in or the next corner. “This literally drives customers to the next bet and is extremely addictive,” says Voigt. “The sports betting providers have done a lot to ensure that people simply couldn’t stop playing, that’s the crucial point.”
The number of gambling addicts has been rising for years. It currently stands at 1.3 million people. At the same time, betting providers are racing from record profit to record profit, as the Federal Government’s addiction commissioner, Burkhard Blienert (SPD), tells our editorial team. “In Germany alone, gamblers lose more than 1.4 billion euros on sports betting in one year.” Blienert is therefore calling for stricter advertising rules for sports betting. (as)
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