Bank customer in Austria may secure refund of wagered money from financial institution due to online gambling losses.
Article Blast:
Title: Austrian's Battle to Recover Stolen Online Gambling Funds
Date: 06.05.2025 (Last updated on the same date)
- Austrian Player Battles to Recover 27,000 Euros Lost in an Illegal Online Casino
- Maltese Law Stands in the Way, but the Supreme Court Delivers a Breakthrough
- Player Now Targets the Bank Hiding the Gambling Enterprise's Funds
An Austrian gambler is on a relentless mission to reclaim her lost gambling stakes of 27,000 euros, stolen from an illegal online casino.
Sadly, this isn’t an isolated incident. Numerous cases show that these illegal online casinos flourish abundantly, especially since Malta's Law, Bill No. 55, shrouds gambling companies based in Malta from foreign lawsuits. Although the EU commission is scrutinizing this protective law, its enforcement remains persistent.
Last December, the Austrian Supreme Court (OGH) made a historic decision in case number 3 Nc 72/24d, stating that players could reclaim losses from unlicensed providers. However, the online casino with which the Austrian player was involved is unlikely to surrender the money, causing her to take a new course of action.
Instead of confronting the online casino, the player has turned her attention towards the bank where the gambling enterprise kept its funds. So far, the bank has refused to release the ill-gotten gains voluntarily. In a bold move, the player is ready to take legal action against the bank, filing a third-party liability claim, paving the way for indirect accountability of associated parties.
Several German lawyers are also exploring this innovative approach. On April 9, 2025, the European Court of Justice was due to determine whether foreign online casinos have a legal right to operate in Germany without a local license, using the freedom to provide services under Article 56 of the Treaty on the Functioning of the European Union (TFEU) as a justification.
The outcome of this ruling might hold implications for the entire EU. Specifically, it raises the question of whether national gambling laws within the EU hold more significance than the regulations established by the freedom to provide services. As the final arguments are scheduled for July 10, 2025, it remains unclear if this case will set a footprint for the future.
Should the lawsuit against the bank fail or be delayed, the plaintiff has a contingency plan: claim her bank deposits from the European Central Bank (ECB). However, the validity of this strategy is uncertain, as the procedure could drag on for years. Nevertheless, experts believe the verdict would set a significant precedent worth carefully considering. Some posit that it may take decades to finalize.
Even so, the player has already assigned her claim to litigation funder Jufina, potentially enabling her to recover part of her money already.
Insights:- Recent rulings from the Austrian Supreme Court have made it possible for Austrian residents to recover gambling losses from unlicensed providers, even when located in third countries like Malta. Accordingly, Austrian gamblers can pursue third-party claims (potentially including claims against banks) when seeking remediation for losses from unlicensed gambling activities.[1]- Malta's Bill No. 55 (and similar legislative frameworks) typically aims to regulate and protect Maltese-licensed operators, often seeking to exempt them from liability covered by foreign laws, particularly when those laws contradict Malta's regulatory regime. However, Austrian courts have actively enforced their jurisdiction over foreign operators and related third parties (such as banks), even when Malta's laws protect those entities locally.[1]- This proceeding highlights an ongoing struggle between national consumer protection measures and the EU's internal market principles. Courts in both Austria and Malta are proactively engaging in cases of third-party liability in the context of illegal online gambling.[4]
[1] Source: [Austrian Supreme Court (OGH) Justification, Case No. 3 Nc 72/24d]
[4] Source: [Maltese Civil Court Ruling, Feb 2025 (Limited Documentation)]
- What about the bank refusing to release the money? The Austrian player is planning to take legal action against it, filing a third-party liability claim, attempting to hold the associated parties accountable.
- The bank is not the only institution connected to this illegal gambling enterprise; Malta, home to many gambling companies, has a law (Bill No. 55) that shields Maltese-based companies from foreign lawsuits, posing a challenge in recovering the funds.
- Undeniably, Malta's Law stands as a stumbling block for recovering the stolen gambling funds, as it enables Maltese-based gambling enterprises to operate with a certain level of protection from foreign legal actions.
- The player's pursuit of the stolen funds has engaged several finance businesses, with experts and German lawyers considering innovative strategies like third-party claims against banks and potential appeals to the European Central Bank.
