Online Gaming Loss Recovery: Austrian Gambler Pursues Refund from Bank for Lost Wagers
Austrian Player Pursues Legal Action Against Bank Over €27,000 Lost at Illegal Online Casino
An Austrian gambler is seeking a refund of €27,000 lost at an unlawful online casino in Austria, as reported by Der Standard. Regardless of the casino's illicit status, gambling companies based in Malta benefit from a Maltese law, Bill No. 55, which shields them from foreign lawsuits.
This law, frequently criticized by the EU Commission, prevents Maltese online casinos from being forced to reimburse losses from unauthorized businesses.
The Austrian Supreme Court (OGH), however, has ruled in a December 2024 case (3 Nc 72/24d) that such reimbursements could be enforced in Austria. Nevertheless, it is unlikely that the casino operator will comply with this legal ruling.
In a novel approach, the player is now aiming to sue the bank where the criminal gambling enterprise keeps its funds. The bank has so far refused to release the money voluntarily. To support her claim, the player intends to file a third-party liability lawsuit against the bank—a legal tactic also being pursued by German lawyers.
The European Court of Justice was expected to decide on 9th April 2025 whether foreign online casinos can legally operate in Germany without a local license if they rely on the freedom to provide services under Article 56 of the Treaty on the Functioning of the European Union (TFEU). Although this ruling applies to Germany, it could have implications across the EU.
The question remains whether national gambling laws within the EU are more pertinent than the framework established by the freedom to provide services. A judgment is expected on 10th July 2025. Notably, this case pertains to a previous period, and its ramifications for the future remain uncertain.
If the lawsuit against the bank fails or the payment is delayed, the plaintiff may opt to claim bank deposits at the European Central Bank (ECB), though the effectiveness of this strategy is uncertain. The legal process could stretch on for years, according to experts, as a precedent-setting verdict would require careful preparation.
The player has already assigned her claim to litigation funder Jufina, potentially securing partial compensation.
Anti-Money Laundering (AML) regulations require strict monitoring and reporting of suspicious transactions by EU countries, potentially extending to detecting and preventing the flow of illegal gambling proceeds. However, specific legal actions against banks for third-party liability related to such proceeds are not common in the EU.
Banks could face increased pressure to strengthen their compliance systems to prevent the facilitation of illegal transactions, leading to more stringent controls and reporting requirements. In addition, enhanced legal liability for negligence in facilitating illegal transactions is possible, potentially resulting in lawsuits and financial penalties.
EU countries might also see increased cooperation and information sharing to combat money laundering, impacting future third-party liability handling. Potential future legislative changes, regulatory enforcement, and technological advancements could further clarify the legal status of third-party liability for banks involved in illegal gambling proceeds.
- The German legal tactic that the Austrian player is adopting involves filing a third-party liability lawsuit against the bank, indicating a possible interest in online casinos Germany, casino-and-gambling, and casino-games that are funded by the bank, despite the unlawful status of the casino.
- As EU countries strive to enforce Anti-Money Laundering (AML) regulations and combat money laundering activities, banks could be subject to increased pressure to strengthen their compliance systems and face increased legal liability for facilitating illegal transactions related to casino-games, lotteries, and other forms of gambling, potentially leading to lawsuits and financial penalties.
