The Court of Justice of the European Union ruled on Wednesday that EU member states can prohibit specific online gambling services even when operators hold licenses from other EU countries. More critically, the decision means that consumers can sue to reclaim their losses when gambling contracts violate these national bans.
Key Takeaways:
CJEU ruled in C-440/23 that EU states can ban online gambling despite cross-border licenses Lottoland lost landmark case – German player can reclaim stakes lost between 2019 and 2021 Ruling binds all 27 EU courts, with billions in pending player restitution claims at stake A Binding European Precedent With Billions at StakeLottoland holds licenses from the Malta Gaming Authority (MGA) and offered virtual slots and lottery draw betting to German customers during a period when the nation’s Interstate Treaty on Gambling effectively banned most online casino products. The operator argued that its MGA license and the EU’s freedom to provide services under Article 56 of the Treaty on the Functioning of the European Union should override national restrictions. The court rejected that position, ruling that an operating license from one EU country does not grant the right to serve customers in another where those products are banned.
The judges also addressed the fact that Germany subsequently legalized online gambling in July 2021. The court held that this did not retroactively validate Lottoland’s earlier operations or undermine the player’s restitution claim.
