Tipico Faces Pressure Yet Secures Partial Victory!
The Bundesgerichtshof (BGH), Germany's Federal Court of Justice, held its first hearing on the legality of sports betting prior to the State Treaty on Gaming on June 27, 2024. The case, involving Tipico, a well-known sports betting provider, has been generating interest due to its potential implications for numerous similar cases.
The BGH is currently considering a referral to the European Court of Justice (ECJ) in the Tipico case. Some new aspects that have not been legally addressed before emerged during the hearing, leading Judge Thomas Koch to admit that some issues may require a referral to the ECJ.
In early April, the BGH took a consumer-friendly position in a 25-page order, suggesting it might see the case differently. The plaintiff, who placed sports bets with Tipico between 2013 and 2018 and lost a total of over 3,700 euros, had initially had their claim for a refund of lost money denied in the first instance by the Regional Court of Ulm.
Tipico argues its case using EU law. Lawyer Christian Rohnke, supporting Tipico's view in the BGH hearing, questions whether a provider can be punished for not being able to receive a license due to union law violations. Rohnke's sentiments were echoed by Tipico, who believes it could not provide a permit for sports betting due to it being wrongly withheld.
The BGH confirmed after the first hearing that it considers the plaintiff to be in the right. However, a verdict in the case has not been announced yet, according to the official BGH announcement, it will be on July 25, 2024. The final decision, which could set a precedent for thousands of similar cases, has not yet been made.
It cannot be confirmed whether a decision is expected that would set a broad precedent affecting Tipico and other bookmakers’ past cases. The decision will likely hinge on the interpretation of the State Treaty and associated national gambling laws. While courts may influence future cases, no confirmed reports indicate the BGH is about to issue a landmark ruling on this matter as of mid-2025.
This case comes amidst a broader context of increasing legal attention internationally on the regulation and control over sports betting and gambling activities. Germany has recently undergone liberalization of its iGaming laws, allowing online casinos and poker under regulated conditions, with a framework aimed at consumer protection and regulatory compliance. The courts in Germany and elsewhere have been increasingly active in clarifying the status of various gambling activities.
If such a judgment were to be issued, it could indeed have substantial implications for numerous cases involving unlicensed or previously unregulated sports betting operations. However, no current source provides details on the timing or content of such a decision.
What is the potential impact of the BGH's decision on the Tipico case in terms of finance and business for similar sports betting providers?Could the BGH's decision in the Tipico case, regarding EU law and the withholding of a permit, set a precedent for future finance and business decisions related to sports betting and gambling activities?
