Can players from Germany reclaim money lost in foreign online casinos if these casinos are officially licensed in Malta? This question stands at the center of a high-profile legal conflict between the two countries. The situation escalated after a series of lawsuits in which German citizens demand the return of their losses from Maltese operators, citing differences in gambling regulations between EU countries. A precedent-setting case is currently being considered by the Court of Justice of the European Union, having already sparked a wide debate about the future of the entire European online gambling market.
Why German Players Demand Refunds of Losses from Maltese Operators
German players are increasingly turning to the courts with demands to reclaim funds lost on international gaming platforms. Such claims have become possible due to strict restrictions in Germany regarding certain types of online gambling, in particular online slots and some lotteries. German legislation limits the activities of many online casinos, prohibiting or significantly narrowing the range of permitted products.
Between 2019 and 2021, German clients of platforms like Lottoland faced the impossibility of legal access to a number of gambling games. However, many such services continue to operate in Germany on the basis of licenses issued in Malta, allowing them to accept deposits and payouts from German players. In one example mentioned in case C‑440/23, the plaintiff demanded the return of the entire sum of losses accumulated over two years — the amount, according to the press, reached several thousand euros.
The desire to seek compensation specifically from Maltese operators is related to the fact that Malta is one of the key licensing centers for European online gambling. It can be likened to Las Vegas or Macau, which have long been popular locations for land-based casinos. Companies operating under a Maltese license provide their services to EU citizens, relying on the freedom to provide services within the Union.
The Role of the EU Court: What Is Being Decided Now
The case has come under the spotlight of the Court of Justice of the European Union, as this institution determines to what extent national restrictions can be combined with the general principles of the single market. The question was whether a German player who lost money in a Maltese online casino could claim a refund under German law, or whether such claims contradict European norms on the freedom to provide services.
The EU Court acts as the highest arbiter in legal disputes between Member States and hears cases affecting the fundamental freedoms within the Union. In June 2024, in case C‑440/23, the Advocate General of the EU Court delivered their opinion. This expert does not issue a final decision, but their opinion significantly influences the future position of the judges. In this case, the Advocate General noted that players’ claims for compensation do not constitute an abuse of European law and are permissible under national legislation.
This conclusion confirmed the legitimacy of the claim and sent a signal to other German and Austrian players who are also demanding the return of funds from Maltese operators. The final decision in the case is expected in autumn 2024.
Arguments from Malta and Germany: Two Sides of the Issue
Maltese operators base their defense on the principle of freedom to provide services, enshrined in Article 56 of the Treaty on the Functioning of the EU. Among their arguments:
- Any company legally licensed in one EU country has the right to offer its services to citizens of other Union countries
- Bans and restrictions must be justified by serious grounds, such as the protection of public morality or the prevention of crime
On the other hand, Germany insists on the need for strict regulation to protect consumers and prevent gambling addiction. As stated by a spokesperson for the German regulator GGL: “We believe that such laws must comply with pan-European norms and standards for the protection of citizens” (source: official GGL website).
The freedom to provide services within the EU allows companies to offer their services throughout the Union without additional bureaucratic barriers. However, gambling is recognized as a special area where national restrictions are allowed if they serve to protect the interests of society.
Bill 55: A New Round of Conflict
In 2023, Malta adopted the controversial Bill 55, aimed at protecting Maltese operators from lawsuits and court decisions made in other countries. The main goal of this provision is to prevent the prosecution of Maltese companies outside Malta’s jurisdiction and protect their business from “unjustified legal attacks,” as stated by the Malta Gaming Authority (MGA).
The MGA emphasizes that its task is to protect operators working under Maltese licenses from risks associated with inconsistencies between national legislations. However, the German regulator GGL has expressed serious objections. A GGL representative stressed: “In our opinion, this law does not comply with European norms on the recognition of court decisions” (see Regulation (EU) 1215/2002, statement on the GGL website).
Bill 55 has become a new point of tension between the countries and raises additional questions about the unity of European principles.
What Awaits the Industry: Forecasts and Expectations
The EU online gambling market is awaiting the consequences of the Court’s verdict. If the judges support the German players, tens of thousands of citizens from other countries will be able to demand the return of their lost money, which could lead to a wave of lawsuits and the need to reform the entire licensing system.
In such conditions, the situation may also affect those gambling operators licensed in other countries. Our authors have studied the top search results and found that Melbet Casino, Pin Up, or Megapari have a wide variety of licenses, making it difficult to work with them under a unified scheme. However, the decision regarding Malta may set a precedent and trigger further changes.
If, on the other hand, Maltese operators prevail, the business will retain much of its mobility within the EU, but the issue of national regulation will remain open. Similar disputes have already been considered in Austria and the Netherlands, where courts have reached different decisions depending on local conditions.
Experts note that the case may set a precedent for the entire online entertainment sector and also prompt the development of more unified rules regarding gambling within the EU.
Expectations and Further Steps
The final decision in the case is expected in autumn 2024, and its outcome will affect not only Germany and Malta but all EU countries where international operators are active. The court’s position will determine whether countries retain the right to apply their own restrictions or if the European Union will establish new unified regulatory standards.
The further steps of market participants will largely depend on the outcome of this litigation. The decision could change not only the practice of refunding losses but also approaches to licensing and consumer protection throughout the European online gambling market.
