Sport betting platform's board member, Axel Hefer, discloses absence of guarantee for refunds amid threats.
Gambling is on high alert due to a pending ruling from the European Court of Justice (ECJ) that could shake up the industry. [Image Credit: Lukas/pexels.com]
Billions at stake for bookmakers as ECJ makes monumental decisions
In an interview with the FAZ, Tipico CEO Axel Hefner discusses the industry-altering decisions they expect from the ECJ this year.
Currently, the gambling world eagerly awaits an ECJ ruling determining the legality of sports bets placed by German players during a period when no nationwide gambling licenses were available in Germany.
If players triumph, sports betting providers might be compelled to repay colossal losses worth approximately 20 billion euros. Hefner stated that financial institutions had already covered many advanced player repayments.
Tipico believes a negative ECJ ruling is improbable
The landmark case with case number I ZR 90/23 between Tipico and process financer Gamesright was referred to the ECJ by the Federal Court of Justice (BGH) in July 2024 and is still under deliberation.
Hefner emphasized that Tipico had not created substantial provisions to prepare for possible repayments. He pointed out that their chosen accounting policy only provides for this in case the occurrence of such an event is “sufficiently likely.”
Tipico doesn’t seem to view this likelihood as substantial. Hefner also communicated a reluctance to “hide behind Maltese laws,” presumably referring to the controversial Bill No. 55, which protects Maltese gambling companies from foreign prosecution.
2025: A pivotal year for gambling verdicts
Numerous rulings affecting the German gambling industry have already been announced or are just around the corner in 2025. For instance, Maltese gambling companies have unsuccessfully contested double taxation within the EU, and the BGH has ruled that proceedings against Maltese online casinos can continue, despite several critical ECJ rulings yet to be finalized.
One of these key ECJ hearings took place on 09.04.2025. Both cases with case numbers C-440/23 and Tipico revolve around the so-called freedom to provide services within the EU. However, this hearing, which focused on online casino games and lottery offers rather than sports bets, ended without a ruling.
Providers with licenses in EU countries seem to be optimistic that their status could be confirmed retroactively, having been legally active prior to Germany’s Glücksspielstaatsvertrag 2021 regulation. However, a decision is not anticipated before July 2025 at the earliest.
Tipico confirms readiness for the future
Heffner confirmed that Tipico is shifting its focus towards future business ventures rather than legacy issues. As a holder of a German gambling license, Tipico is now operating within legal boundaries and is well-positioned for the future.
Unlike numerous illegal providers still operating in Germany with foreign licenses, representing a substantial portion of the market, Tipico’s legality since license issuance appears undisputed. However, it remains uncertain whether Tipico might face challenges due to an unfavorable ECJ ruling and potential player refunds.
In essence, the gambling world eagerly anticipates the ECJ’s decision on Case C-440/23 to dictate the financial obligations of operators. If a ruling is made in favor of players, providers like Tipico may face massive repercussions. Yet, intricate cross-border legal complexities will persist, as the actual financial exposure will depend on jurisdictional enforcement and legal strategies employed by operators.
- If the European Court of Justice (ECJ) rules in favor of players, sports betting providers like Tipico might be forced to refund losses valued up to 20 billion euros.
- Financial institutions have already covered significant player refunds in anticipation of the ECJ's ruling regarding the legality of sports bets placed by German players during licensing voids.
- Optimistic about the outcome of the ECJ ruling, Tipico's CEO, Axel Hefner, shared that the company has not made substantial provisions for potential repayments as they believe the likelihood of an unfavorable ruling is not significant.
- Other notable rulings impacting the German gambling industry are expected this year, with key hearings focusing on online casinos and lottery offers, the results of which could dictate the financial responsibilities of operators.
- Despite holding a German gambling license and operating within legal boundaries, operators like Tipico may still encounter challenges, such as massive repercussions, if the ECJ rules in favor of players in Case C-440/23.
