German Court Orders Online Gambling Company to Repay Losses to Player
A common saying suggests gambling debts are debts of honor. However, for years, German consumers have been losing money to hundreds of online gambling providers operating without a valid German license. Now, a court in Hamburg has ruled in favor of a player, ordering compensation.
The plaintiff sued after depositing approximately €192,000 on the “bwin” website between August 2014 and July 2020, receiving only about €101,000 back. He lost the remaining €90,600 on online sports bets.
Online Gambling Only Legal in Germany Since October 2020
According to Goldenstein Law Firm, representing 5,500 gamblers nationwide, the “bwin” website was operated by ElectraWorks Limited, headquartered in Gibraltar, during that period. ElectraWorks should not have accepted money from German consumers, as online gambling was only legalized in Germany in October 2020. Previously, Schleswig-Holstein had an exception, but licensed providers there were restricted to residents of that state and could not offer services nationwide.
The law firm argues that contracts for illegal services are invalid. Therefore, agreements between gambling providers and German customers are illegal. Affected gamblers can reclaim their losses from ElectraWorks and other providers who operated illegally in Germany, retroactively for up to ten years!
Hamburg Court Awards Compensation to Gambler
The Hamburg Regional Court agreed, ordering full reimbursement of the plaintiff’s losses.
The implications are significant. Many players have lost tens or even hundreds of thousands of euros, accumulating debt and facing financial ruin. They are hoping to recover their losses to make a fresh start, explains attorney Claus Goldenstein, whose firm represented the plaintiff. “The gambling providers’ greed is backfiring as they face claims from their German customers.”
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