Fresh Spin on the Austrian Gambling Saga: A Battle Against Illegality and Banks
Bank Customer in Austria Seeks Bank to Return Gambling Losses Incurred Online
By Timm Schaffner, Edited by Angela Burke, May 6, 2025, Updated May 8, 2025.
- Austrian High-Roller Bluffs €27,000 Loss in Illicit Online Gambling Den
- Supreme Court Rules in Favor of Player, but Malta's Law Stands in the Way
- Player Attempts to Claw Back Winnings by Suing Bank of the Shady Casino
Malta's Law Shields Illicit Online Casinos from Paying Refunds
An Austrian high-stakes gambler has experienced a devastating €27,000 loss at an unlawful online casino based in Austria and is now on a mission to recuperate his funds, as reported by Der Standard.
It's no secret that this, and numerous other illegal gambling enterprises, operate with impunity. The veil of illegality, however, does not deter our gutsy player. The catch is that gambling companies nestled in Malta enjoy a layer of protection from foreign lawsuits thanks to the often-criticized law Bill No. 55.
Under Maltese law, online casinos are shielded from being sued in foreign courts over illegally-gained funds. This controversial law, currently under investigation by the EU Commission, remains in effect for now and protects Maltese online casinos from being forced to pay refunds for activities deemed illegal under foreign law.
The Player's Clever Maneuver: Targeting the Bank
The Austrian Supreme Court (OGH) ruled in December 2024, under case number 3 Nc 72/24d, that player losses can be enforced in Austria. Unfortunately, it's unlikely that the online casino operator in this case will adhere to this ruling.
Undeterred, our player has devised a cunning strategy: instead of hassling the online casino for his cashback, he has set his sights on the bank that houses the gambling company's funds. So far, the bank has refused to cough up the dough voluntarily.
To give merit to his claim, the player is set to file a lawsuit against the bank, a third-party liability claim, under which companies peripherally involved in illegal activities could potentially share the culpability. This tactic is also gaining popularity among lawyers in Germany.
The Legal Tussle over Services within the EU Remains a Gray Area
On April 9, 2025, the European Court of Justice was expected to decide whether unlicensed foreign online casinos could legally operate in Germany, relying on the freedom to provide services as laid out in Article 56 of the Treaty on the Functioning of the European Union (TFEU).
Although this ruling mainly pertained to Germany, it could very well have implications for other EU member states. The question at hand was whether national gambling laws take precedence over the framework established by the freedom to provide services within the EU.
The final arguments are yet to come, with no definitive decision expected until July 10, 2025. Furthermore, it's uncertain whether this ruling will set any future guidelines, considering the case refers to a previous period.
Legal Action Against the Bank Could Drag On for Years
If the lawsuit against the bank falls flat or payments are delayed, the plaintiff has a backup plan: claiming the bank deposits at the European Central Bank (ECB). However, it remains unclear whether this maneuver would be an effective means to enforce the claim.
Regardless, the legal process could stretch out for years, as experts speculate that the verdict could set a significant precedent that demands careful deliberation. If Austrian court rulings are any indication, there is no rush to make a hasty decision, with cases often taking 30 years or more to resolve.
On the Bright Side: The player has assigned her claim to the litigation funder Jufina and may already have a piece of the action.
A Closer Look: EU Regulations on Third-Party Liability and Banks
- General Principles: In the EU, third-party liability usually applies to situations where a party, not directly involved in an initial wrong, is non-theless held responsible for some aspect of the harm caused. This can potentially apply to banks who might be found to have facilitated illegal activities, such as illegal gambling, through their services.
- Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Regulations: Banks are subject to AML and KYC regulations that require them to monitor and report suspicious transactions. If a bank fails to comply with these regulations and is found to have knowingly enabled illegal gambling activities, it could face legal consequences.
- EU Regulations for Gambling: The EU does not have a unified gambling law, leaving it to individual member states to regulate gambling activities. However, the EU provides guidelines to ensure consumer protection and fair competition. Banks involved in illegal gambling could potentially face legal action if they are found to have supported such activities.
- Third-Party Funding in Legal Disputes: Although not directly tied to banks' liability in illegal gambling, third-party funding can influence the way such legal claims are pursued. It allows claimants to finance legal actions with the help of external funders, potentially increasing the likelihood of banks facing legal challenges is they are involved in illegal activities.
- The Austrian player, who experienced a hefty €27,000 loss in an online casino based in Germany, is now aiming to recover his funds by filing a lawsuit against the bank that houses the gambling company's finances.
- This tactic, known as a third-party liability claim, could potentially hold banks liable for transactions facilitating illegal activities, such as unlawful gambling operations, under EU general principles.
- Maltese law, specifically Bill No. 55, provides protection to online casinos operating in Malta from foreign lawsuits over illegally gained funds, making it challenging for players to reclaim their losses.
- The player's lawsuit against the bank could set a significant precedent in the EU, as experts speculate that the verdict could shape future guidelines regarding the liability of banks involved in illegal gambling activities.
