Unlicensed casino lawsuit losses: Player's country law applies
Historic ruling in the "Wunner" case. The Court of Justice of the European Union dismisses the defense of offshore operators: the location of the server or the origin license does not matter, what legally counts is where the user who lost the money resides.
The Court of Justice of the European Union (CJEU) has issued a ruling that could trigger a flood of litigation against grey market operators. In the resolution of case C-77/24, known as the Wunner case, the highest European judicial authority determined that claims for gambling losses on unauthorized platforms must be resolved by applying the legislation of the player's country of residence, not that of the country where the company is based.
The ruling stems from a dispute in Austria, where a user sued for the return of EUR 18,547 lost between 2019 and 2020 in an online casino managed by Titanium Brace Marketing Limited. The company argued that it operated legally under a Malta license and therefore the litigation should be governed by Maltese law. However, it lacked the local license required by Austria’s strict regulations.
The end of the "shield" of the jurisdiction of origin
The company’s defense tried to argue that the lack of license was an internal administrative matter and that Austrian courts had no jurisdiction. The CJEU flatly rejected this argument, establishing a very strong consumer protection criterion.
Based on the "Rome II" Regulation (Article 4, paragraph 1), the Court clarified that the law applicable to a non-contractual obligation is that of the country where the damage occurs. And where does the financial damage to a player occur? In their assets, which are located in their place of residence.
The judges were explicit: technical factors such as the location of servers, the company’s registered office, or the bank receiving the transfers are part of the operation, but do not determine the place of harm. Therefore, the Maltese company must face the claim under Austria’s liability rules.
A message for the grey market
This ruling strengthens legal certainty within the bloc and sends a clear warning to the industry: if an operator directs its commercial offer to consumers in a Member State without having the local license, it cannot shield itself behind the laws of its jurisdiction of origin (whether Malta, Curacao, or another) to avoid liability.
By confirming that the lex loci damni (law of the place where the damage occurs) applies, the CJEU facilitates players initiating reimbursement actions in their own national courts, significantly increasing the legal and financial risk for unregulated cross-border operations.
Tags: Europe, offshore casinos Europe, Europe bettor protection