Austria: Non Regulated Casinos Can Recover Players’ Winnings
The Austrian Supreme Court has ruled that illegal online casinos have the right to reclaim winnings from players. This decision aims to deter individuals from gambling on the platforms of unlicensed providers. The Court’s ruling creates a situation where players can seek to recover their losses through legal channels, but it also ensures that they cannot profit from illegal gambling.
This decision marks a significant development in the ongoing legal battle between players and online gambling companies internationally operating without holding local licences. In recent years, players in Germany, Austria, and the Netherlands have successfully sued to recover their losses from such operators. Whilst traditionally it has always been the players suing the casinos, the Supreme Court in Australia has ruled claims that can go both ways.
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Casinos Have A Right To Recover Winnings
Courts in these countries have consistently voided gambling contracts in case the gambling companies lacked the proper licences. In this specific case, an online gambling company (H* ENC, Malta) sought to reclaim NZ$12,990 (€7,152.71) from an Austrian player who won the amount between May and July 2021. The company argued that if the contract was deemed void, it should also have the right to recover the winnings. Whilst this might appear to be a win for the online casino, industry experts offer a different perspective.
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“In Favour Of Online Casinos”
The Austrian player argued that the Malta-based company could not reclaim the money because it knowingly engaged in illegal online gambling activities. Despite this, an Austrian court initially ruled in favour of the online casino. The player appealed, and the Austrian Supreme Court ultimately upheld the ruling, allowing online casinos to recover winnings if the gambling contracts are void. This ruling, made in June, was recently made public.
The court’s decision was mixed. The operator initially sought to reclaim the full €7,152.71 won between May and July 2020, but the court ruled only NZ$ 1,137.85 (€626.60) should be returned to cover legal fees. The player argued that the repayment request was an abuse of the law since both parties were aware of the illegality. The court noted that the player ignored betting limits. The ruling aimed to uphold regulations rather than protect the operator.
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Aims To Make Illegal Gambling Less Appealing
The Supreme Court explained that whilst Austrian gambling laws are primarily designed to protect players, they also aim to prevent illegal gambling and its associated risks. By allowing online casinos to reclaim winnings, the Court aims to make illegal gambling less appealing from the player’s perspective.
The Court stated that if players could keep their winnings whilst still reclaiming their losses from illegal gambling sites, they would not be sufficiently discouraged from using these non licenced platforms. By enabling online casinos to recover players’ winnings, the Supreme Court believes that the appeal of illegal gambling will diminish, ultimately protecting consumers from engaging in prohibited activities. As a result of this ruling, the Austrian player has been ordered to return his gambling winnings to the illegal online casino.
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New Zealand’s Plan To Regulate Online Gambling
In New Zealand, online gambling is not regulated, but international operators are not prohibited from offering their online gambling products without holding a local licence. In recent months, there has been a gradual shift withNew Zealand planning to regulate online gambling by 2026. The plans mark a significant shift in its approach to online casinos.
The new regulations will introduce a licensing framework, making it illegal for unlicensed operators to target New Zealand players. The government aims to protect players, reduce gambling-related harm, and generate tax revenue. A limited number of licences will be issued in New Zealand, with strict advertising restrictions. The plan is currently open for public consultation, allowing stakeholders to provide feedback on the proposed regulations.
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