Bank customer in Austria may secure refund for squandered online gambling funds from financial institution
Title: Austrian Gambler Takes on Bank in Landmark Third-Party Liability Lawsuit
Author: Timm Schaffner (edited by Angela Burke)
Publish Date: 06.05.2025 (updated on: 05.06.2025)
- Unlucky Gambler Battles to Recoup €27,000 from Illegal Maltese Casino
- Maltese Law Hinders Refunds, but OGH Favors Player
- Player Aims to Sue Bank Accused of Aiding Illicit Gaming Empire
European Legal Twist: The Bank's Role in Unlawful Online Gambling
Stung by a hefty €27,000 loss at an illicit online casino, an Austrian gamer is locked in a fierce battle to reclaim his funds. The twist? Instead of targeting the casino, he's setting his sights on the Bank that safeguards the gaming company's dough.
Though the unlawful nature of the casino is undeniable in numerous instances, Maltese legislation—notoriously criticized by EU Commission—shields countryside casinos from lawsuits and hence precludes Maltese online casinos from returning ill-gotten earnings from unlawful ventures.
In an surprising turn, the Austrian Supreme Court (OGH) has marked that the court order to refund losses to players may also implement in Austria under case number 3 Nc 72/24d. Yet, there's scant chance the casino's operator will comply.
The new strategy: rather than chasing the casino, the player aims to sue the bank. This is a so-called third-party liability lawsuit, whereby companies incidentally involved in illegal activities can be made accountable.
European Court of Justice Decision Awaited on Foreign Online Casinos
Controversy persists over foreign online casinos operating in Germany without obtaining local licenses, as detailed by Der Standard. Still, the European Court of Justice is set to weigh in on Wednesday (April 9, 2025) regarding whether these online casinos can legally operate in Germany under Article 56 of the Treaty on the Functioning of the European Union (TFEU), even without a license.
The decision could have far-reaching implications across the EU, stirring debate on whether national gambling laws trump EU's freedom to provide services legal framework. A decision in favor of foreign online casinos might further complicate cases like the Austrian player's.
Multi-Year Vicissitude if Bank Lawsuit Fails
If the lawsuit against the bank collapses or payment is delayed, the plaintiff plans to claim bank deposits at the European Central Bank (ECB) as a last resort. However, the process might drag on for years before reaching a verdict.
Shades of Gray: The Legal Labyrinth of Third-Party Liability Lawsuits
Third-party liability lawsuits against banks for assisting in illegal gambling transactions are complex and vary across EU jurisdictions. These lawsuits typically involve claims that banks neglected to scrutinize and prevent suspicious transactions, thereby aiding illegal activities.
The success of a lawsuit hinges on proving that the bank held an obligation to hinder the unlawful transactions and failed to do so. The chances of success are higher as EU nations strengthen their anti-money laundering regulations and increase cooperation among regulatory bodies to curb illegal gambling ventures.
European Court Cases and Precedents
While definitive cases involving banks in Malta may be scarce, analogous scenarios in other EU countries suggest that regulatory bodies and courts are intensifying scrutiny over banks for their role in facilitating illegal activities. For instance, the Austrian Office for Combating Fraud has been actively tackling illegal gambling cases, which could set a significant precedent for similar actions across the EU.
Cooperation and Regulation
Advocacy for cooperation between banks, tech companies, and regulatory bodies to combat illegal gambling is growing stronger across the EU. Efforts to thwart illegal gambling sites and prevent financial transactions with them are becoming increasingly popular, optimizing legal cases against entities that facilitate unlawful activities.
In conclusion, while specific cases such as the Austrian gambler's could encounter obstacles, the broader push toward stricter anti-money laundering regulations and increased cooperation among regulatory bodies may boost the odds of successful legal action against banks that assist in illegal gambling transactions.
- In a move uncommon in the European gambling landscape, an Austrian gamer seeks to file a third-party liability lawsuit against a bank, alleging it safeguarded funds for an illegal online casino in Germany, implying involvement in personal-finance matters tied to technology.
- Given the complexities surrounding third-party liability lawsuits, the success of the Austrian gamer's lawsuit against the bank depends on proving the bank failed to prevent suspicious transactions related to finance and technology, particularly in the context of online casinos in Germany.
