Austrian Court Rules Player Must Return Winnings Over Unlicensed Gambling

Austrian Court Orders Player to Return Winnings Amid Unlicensed Gambling Controversy

In a groundbreaking legal decision that could set a precedent for future cases, an Austrian player has been ordered to return a portion of their gambling winnings after being found in violation of Austria’s strict gambling laws. This ruling highlights the ongoing tension between Austria’s gambling monopoly, led by Casinos Austria’s Win2Day platform, and unlicensed foreign operators. The case underscores the complexities of navigating Austria’s gambling regulations and the potential consequences for both players and operators who engage in unlicensed gaming activities.

The Legal Landscape

Austria’s gambling market operates under a strict monopoly, with Win2Day holding the exclusive license for online casino operations. This monopoly has driven many Austrian players to seek out foreign, unlicensed online operators, hoping to access a wider variety of games and potentially more lucrative opportunities. However, these players often find themselves on shaky legal ground. A 2021 ruling by the Austrian Supreme Court declared that contracts between players and unlicensed foreign operators are invalid, and any losses incurred by players should be refunded.

This ruling opened the floodgates for numerous lawsuits, with players seeking to recoup losses from operators like 888 (now Evoke) and William Hill. While these cases typically favored the players, the recent ruling by the Supreme Court indicates that the legal scales can tip both ways.

A Landmark Ruling

In this particular case, an unnamed foreign operator sought to recover €7,162 in winnings from a player who had gambled on their platform between May and July 2020. The court, however, ruled that only part of the winnings, amounting to €626.60, was obtained illegally. The player was ordered to return this sum to cover the operator’s legal fees.

The player argued that both parties were aware of the illegality of their actions and that the operator’s claim was an abuse of the law. The court, however, maintained that Austrian gambling laws do not provide protective provisions for either party involved in illegal gambling. The ruling emphasized that “every contractual partner can invoke the illegality and nullity of the contract,” effectively placing responsibility on both sides for their involvement in unlicensed activities.

Interestingly, the court did not entirely side with the operator, noting that the intent of Austria’s gambling regulations is to prevent illegal gambling outside the state monopoly and curb gambling addiction. The ruling serves as a reminder that while operators may pursue legal action against players, the courts may not always offer full protection to these companies, especially when they are also operating outside the law.

Implications for the Future

This case could serve as a blueprint for similar legal battles in other countries with strict gambling regulations, such as Germany. In Germany, a case is currently being considered regarding whether sports betting operators should refund players for losses incurred before the State Treaty on Gambling came into effect. This case has been referred to the European Court of Justice (ECJ), and its outcome could have significant implications for the European gambling industry.

German operators, like their Austrian counterparts, have been dealing with lawsuits from players for years. While some claims have been dismissed, others have succeeded, leading to a complex legal environment where both players and operators must tread carefully. Notably, Tipico, a major operator, withdrew its online casino offerings from Austria following the 2021 ruling, signaling the growing challenges faced by operators in tightly regulated markets.

The Austrian court’s decision to order a player to return winnings from unlicensed gambling marks a significant development in the ongoing struggle between state gambling monopolies and foreign operators. This case highlights the intricate legal landscape in Austria and similar jurisdictions, where both players and operators must navigate a web of regulations. As more cases arise and potentially reach higher courts, including the ECJ, the outcomes could reshape the future of online gambling across Europe. For now, this ruling serves as a cautionary tale for all parties involved in unlicensed gaming activities, reinforcing the importance of compliance with local laws to avoid costly legal battles.