With a spectacular decision, the Federal Court of Justice has strengthened consumer rights regarding sports betting. Players are entitled to compensation for losses if the provider acted without a state license, senior judges stated at the oral hearing of the case (ref. I ZR 90/23). This applies even if this license has already been requested. Particularly explosive: the BGH assumes a statute of limitations of ten years. This would mean that players can claim their losses since 2014.
The case in question involves a player who lost several thousand euros betting on sports at Tipico between 2013 and 2018. At that time, Tipico, like many other providers, was already advertising sports betting, but without having the state license for such an offer. The BGH has made it clear: a license is a prerequisite to be able to legally offer a business of this type.
These betting providers could be affected by the ruling
If the provider is not licensed, they are acting illegally. This will void the deal and the player will be entitled to recover his losses. Nothing changes if the provider has applied for the license but has not yet received it. The court made its point of view clear during the oral hearing. However, a verdict has not yet been published.
However, it is likely to become relevant to major sports betting providers. They acquired their licenses between the end of 2020 and mid-2022. In detail:
- Betano (licensed since 2/2021)
- Betway (licensed since 3/2021)
- Bwin (license from 10/2020)
- Bet365 (licensed since 10/2020)
- Interwetten (licensed since 11/2020)
- Sunmaker (licensed since 4/2022)
- Typical (license from 10/2020)
According to our analysis, all of the mentioned providers were already offering and advertising sports betting long before receiving their licenses. This now gives customers the opportunity to seek compensation. The BGH also ruled on the question of until when this compensation can be claimed retroactively. Because the judges confirmed the so-called illicit claims.
This would mean that players would be able to claim their losses retroactively for ten years, i.e. to 2014. Specifically, betting providers would have to pay compensation for losses between 2014 and the time they received their license in Germany.
Those affected must verify their claims
However, we do not expect sports betting providers to compensate their customers without resistance. Legal action will probably be necessary in each individual case. This carries a significant cost risk, especially since legal protection insurance is generally not cost-effective.
Therefore, affected consumers should first have their complaints verified, for example free of charge and without obligation, by contacting the revocation interest group. If the case is promising, it is possible to act through so-called litigation financing. The plaintiff does not run any risk of costs, but only has to pay a percentage success fee if he manages to recover the money.