The Austrian Supreme Court (OGH) has ruled that the management of unlicensed online casinos can be held personally liable for player reimbursement claims.
In its decision, the Court confirmed that Austrian law applies and that Austrian courts have jurisdiction in such cases. It also established that managing directors can be held personally liable for breaching player protection rules.
According to the Court, Austrian law applies under the Rome II Regulation, while Austrian Courts have jurisdiction under the Brussels I Regulation. Crucially, the court classified player protection provisions under Austria’s Gambling Act (GSpG) as “protective laws”.
The ruling follows a decision by the European Court of Justice (ECJ) in the Wunner case, which clarified that tort claims against directors of online gambling operators can be brought in the player’s country of residence – but that the law of the country in which the damage occurred applies to these claims.
The Wunner case concerned a consumer habitually resident in Austria who brought an action before the Austrian Courts against the managing director of a Maltese gambling company. The company offered online gambling in Austria under a Maltese licence, but not under an Austrian gambling licence. Its managing director was based in Malta, not in Austria.
This has raised concerns within the industry. In short, the ECJ has paved the way for managing director liability in cases of unlicensed player losses.
Although the most recent ruling originates in Austria, its implications are expected to extend beyond national borders. Legal experts suggest the reasoning could be applied in other jurisdictions, including Germany, where similar player protection rules exist under the 2021 State Treaty on Gambling.
The European Court of Justice (ECJ) has recently received an opinion from an Advocate General regarding a crucial case involving a player seeking reimbursement from the operator Tipico. The opinion indicates that EU Member States are not obligated to recognise each other's gambling licences, providing a positive outlook for players pursuing reimbursement claims from operators.
The case concerns a sports bettor who lost money between 2013 and 2020, before Germany’s 2021 State Treaty on Gambling. During this period, Tipico operated under a Maltese licence without a German licence, and the player is now seeking to recover those losses in German courts.
The combined effect of the OGH ruling, the ECJ’s Wunner decision and ongoing cases such as Tipico strengthens the position of players seeking reimbursement for losses incurred with unlicensed operators.
