Austrian Gambler Goes After 27,000 Euros from Bank of a Shady Online Casino
Bank Customer in Austria Seeks Restitution for Online Gambling Debts from Financial Institution
An Austrian gambler has lost a hefty sum of 27,000 Euros at an illegal online casino based in Austria and is now on a mission to get their money back, according to Der Standard.
It's no secret that the online casino was operating in the gray area of the law. Yet, gambling companies based in Malta enjoy protection from lawsuits thanks to the much-debated law Bill No. 55. This law, in effect for nearly two years, is under scrutiny by the EU Commission but still stands, shielding Maltese online casinos from having to refund losses caused by illegal businesses [1].
Taking a New Route: Aiming for the Bank
In a twist of events, the Austria's Supreme Court (OGH) ruled in December 2024 (case number 3 Nc 72/24d) that the decision to refund losses can be enforced in Austria [2]. However, the operator of the online casino in this case isn't likely to comply with this legal decision, prompting the player to consider alternative strategies.
Enter the plan to sue the bank where the gambling company's funds are kept. So far, the bank has declined to release the money voluntarily [1]. Lawyers argue a 'third-party liability claim', where companies connected to illegal activities may be held accountable. This concept isn't foreign to the German legal scene either [1].
EU Court on the Horizon: Freedom to Provide Services
On April 9, 2025, the European Court of Justice was supposed to decide if foreign online casinos can legally operate in Germany despite lacking a German license, as long as they rely on the freedom to provide services under Article 56 of the Treaty on the Functioning of the European Union (TFEU) [3].
Although the ruling pertains to Germany, it's expected to be applicable throughout the EU. The core question revolves around whether national gambling laws take precedence over the framework set by the freedom to provide services [3].
The final submissions are not due until July 10, 2025, and given the case's historical backdrop, the implications for the future remain unclear [3].
Lengthy Legal Battle Ahead
If the lawsuit against the bank fails or payment is delayed, the plaintiff might resort to claiming bank deposits at the European Central Bank (ECB). However, the effectiveness of this method remains uncertain, and the process could take years to complete, according to legal experts [1].
Meanwhile, the player has assigned their claim to a litigation funder Jufina, potentially receiving a portion of their money already [2].
Insights from the Enrichment Data
- Malta's Malta Gaming Authority (MGA) regulates and enforces regulations in the gambling industry, including financial commitments and anti-money laundering standards.
- Across the EU, laws regarding gambling are harmonized but still subject to national laws.
- The European Court of Justice supports a similar approach, suggesting banks can be liable if they knowingly or negligently facilitate illegal gambling.
- Banks can face hefty fines and sanctions for failing to comply with anti-money laundering and financial crime regulations.
- Third parties (e.g., victims of gambling harm or competing legal operators) might potentially sue banks if they can provide substantial evidence of misconduct or gross negligence. However, such claims are hard to pursue due to the high burden of proof.
In the German legal landscape, lawsuits against banks connected to online casinos operating in an illegal manner can be pursued by using a 'third-party liability claim'. This legal concept is not unique to Austria but is also applied in Germany [1].
The upcoming decision by the European Court of Justice on April 9, 2025, could impact the gambling industry across the EU, as it may determine if foreign online casinos can legally operate without a local license, relying on the freedom to provide services under Article 56 of the Treaty on the Functioning of the European Union (TFEU) [3]. Such a ruling could potentially provide a legal avenue for victims of illegal online casinos to recover their losses by suing banks involved.
