Landmark Court Ruling in Austria Highlights Challenges in Gambling Regulation

In a significant turn of events a recent case in Austria has underscored the complexities surrounding online gambling regulations and user rights. As the industry grapples with unlicensed operators capitalizing on loopholes across various jurisdictions, this landmark ruling introduces critical legal precedents that may influence similar cases in Germany and beyond. The Austrian Supreme Court partially sided with a Malta-based gambling operator that sought to reclaim winnings from an Austrian gambler who had used its services without the necessary local licensing. Although the operator did not hold an Austrian license, the court determined that it could recover a portion of the winnings. In this particular case, the gambler deposited approximately €22,000 and withdrew a total of €29,100 between May and July 2020. Following a claim from the operator to recover €7,152 in winnings, the court found that both parties had entered into a void contract due to the operator’s lack of a local license. However, it also ruled that while players are protected from exploitation by unlicensed operators, they cannot benefit from illegal winnings without repercussions. Interestingly, the ruling may provide an essential blueprint for how similar cases will be handled in Germany. Just last month, a case was referred to the European Court of Justice, challenging whether operators should refund players for losses incurred before the implementation of Germany's State Treaty on Gambling. As the legal landscape continues to evolve, the outcome in Austria could set a precedent that impacts future regulations and operators’ responses across Europe. Interested in a chat about gambling regulations in different jurisdictions? Contact 's experts Thees Buschmann (thees@chevron.group), Lawrence Marchese (lawrence@chevron.group) and Kurt Laferla (kurt@chevron.group). Follow us on LinkedIn for more industry related news.