SIGN UP LOG IN
 

Illegal online gambling: banks cannot justify themselves

Published by

June 10, 2019 7:27 am

gambling

Payment service providers are prohibited from participating in transactions related to illegal online gambling. But now the Leverkusen District Court has also made it clear that banks cannot invoke the use of an automated process to carry out such transactions as justification.

In its ruling of 21 February 2018 – Ref.: 158 C 19107/17 – the AG Munich confirmed approximately one year ago that banks violated the prohibition of participation in credit card payments in connection with illegal online gaming pursuant to Section 4 (1) sentence 2 2nd half sentence GlüStV 2012. As a result, they lose their payment claims against their customers.

No claim for reimbursement of expenses for banks

In the case of credit card payments, the bank first pays in advance and transfers the transaction amount to the payment recipient – in this case to the online gaming provider. Depending on the type of contract, the bank collects the amount either immediately or at an agreed later date from the customer’s deposited current account. This is referred to as the bank’s claim for reimbursement of expenses.

However, the AG Munich decided that the bank would not be entitled to any reimbursement of expenses if it infringed a legal prohibition in a transaction – as in the case of payments in connection with illegal online gambling.

In a lawsuit conducted by the law firm Lenné, the AG Leverkusen confirmed the opinion of the AG Munich on February 19, 2019, but emphasized a further legal aspect in its decision. In the case of an existing statutory ban, it is up to the banks to take appropriate precautions to ensure that they do not violate the ban. AG Leverkusen held this view as follows:

“Due to the law applicable in Germany to the organization of gambling, it was incumbent upon the plaintiff to take precautions not to violate this and not to cooperate in payments prohibited in connection with illegal gambling. To that end, it must draw up contracts with its contracting undertakings accordingly, i.e. exclude payment obligations for games of chance organised in Germany without authorisation, and ensure that this is the case in fact.” (AG Leverkusen, judgment of 19.02.2019 – Ref.: 26 C 346/18, emphasis by the law firm)

Automated procedures: no justification

The view of AG Leverkusen that banks cannot justify themselves by referring to the use of an automated procedure is particularly noteworthy. A fully automated mass transaction does not release banks from their obligation to comply with applicable law:

“It cannot successfully object to this, saying that the payment procedure is fully automated. In the case of an automated procedure, payments to gambling providers initiated automatically in Germany by credit card can also be blocked without permission. Moreover, the use of an automated procedure does not release the user from the obligation to comply with applicable law. Rather, this must also be complied with in such procedures or otherwise not to be used.” (AG Leverkusen, judgment of 19.02.2019 – Ref.: 26 C 346/18, emphasis by the law firm)

Like the AG München, the AG Leverkusen was also of the opinion that transactions in connection with illegal online gaming could be easily identified as such by the bank using the Merchant Category Code (MCC) and the “White List” of the gaming supervisory authorities of the federal states.

In this regard, the AG Leverkusen:

“For the plaintiff, it was also obvious and liquid evidence that the defendant had claimed for a legally prohibited event fee from its contractual partners and that it was legally forbidden for the plaintiff to participate in payment transactions. This already results from the fact that the defendant used the card in Germany and the payments to its customers were marked with the Merchant Category Code (MCC) 7995, which stands for bets (including lottery tickets, casino gaming chips), i.e. gambling. The fact that its contractual partners, whose business it thus knew, are not allowed to organise games of chance in Germany could be established by inquiry to the competent authorities or from the “White List of the gambling authorities of the countries: Gambling provider with a permit in Germany ” published on the Internet by the Joint Office for Gambling of the Federal States since the end of 2015 and continuously updated. (AG Leverkusen, judgment of 19.02.2019 – Ref.: 26 C 346/18)

The judgment of the AG Leverkusen is to be regarded as groundbreaking, even if it remains to be seen how the case law will develop. After all, there is still no supreme court jurisdiction on the subject.

The law firm Lenné will gladly fight for you to recover your payments to illegal gambling providers by taking civil action against the credit card banks. For an initial assessment, the law firm is at your disposal free of charge. Simply make an appointment for an initial, non-binding consultation.

More News

WSOPE: 313 players in the race for the Colossus Bracelet at King's Resort

WSOPE: 313 players in the race for the Colossus Bracelet at King's Resort

Yesterday at King's Resort in Rozvadov the last two starting days for the fifteenth bracelet event of the World Series…

Powerball cracked: three-quarters of a billion dollars paid out

Powerball cracked: three-quarters of a billion dollars paid out

The Powerball lottery in the USA is known for its high winnings. But one player has recently succeeded in making…

Ex-world champion switches to Jay-Z agency

Ex-world champion switches to Jay-Z agency

After other exciting transfers, like the change from "MoAuba" to the Focus Clan, have already taken place, Roc Nation Sports…

G2 Esports defeats Fnatic in a duel between top rivals of the LEC

G2 Esports defeats Fnatic in a duel between top rivals of the LEC

G2 Esports remains the undisputed leader in the European League of Legends LEC. In the top match against their pursuer…

Gerrard: Why Ronaldo can't make it on my dream team

Gerrard: Why Ronaldo can't make it on my dream team

Cristiano Ronaldo (34) is one of the best footballers in the world. But he still didn't make it into the…

Fortnite World Champion Bugha and G2 Esports clear the dust

Fortnite World Champion Bugha and G2 Esports clear the dust

Fortnite world champion Kyle "Bugha" Giersdorf is one of the big winners of the Esports Awards 2019, but the protagonists…

FIFA 19: Bayer 04 continues with M4RV

FIFA 19: Bayer 04 continues with M4RV

In December 2017, he was the first eSportsman to sign his contract with Bayer 04 Leverkusen officially. The club wants…

E-Sport News: G2 Esports is Team of the Year

E-Sport News: G2 Esports is Team of the Year

At this year's Esports Awards, the League of Legends Team of G2 Esports received the eSports Team of the Year…

ROUNDUP/Versum turns to takeover poker: Ready for talks with Merck

ROUNDUP/Versum turns to takeover poker: Ready for talks with Merck

DARMSTADT/TEMPE (dpa-AFX) - Under pressure from Merck's hostile takeover bid, semiconductor supplier Versum is open to negotiations. The Americans announced…

European Poker Series with over €800,000 in prize money from today

European Poker Series with over €800,000 in prize money from today

The European Poker Series (EPS) is bringing 12 days of fantastic poker action to King's Casino on the German border…

Poker Masters - Orpen Kisacikoglu Leads at NLH $25k Final Table

Poker Masters - Orpen Kisacikoglu Leads at NLH $25k Final Table

The race for the Poker Masters Purple Jacket is getting more exciting from event to event, and Sam Soverel can…

Malta Poker Festival - €500k Guaranteed at Main Event

Malta Poker Festival - €500k Guaranteed at Main Event

It is at this moment that the Battle of Malta decides who will take home the title and over €300,000.…

Casino Schenefeld: Another four players qualified for the Nordic Poker Tour
Casino Schenefeld: Another four players qualified for the Nordic Poker Tour

In mid-November, the next big tournament highlight will take place at the Casino Schenefeld, because the Nordic Poker Festival is…

Kevin Roster, a terminally ill poker player: Go back to the WSOP and die.
Kevin Roster, a terminally ill poker player: Go back to the WSOP and die.

The American poker player Kevin Roster (36) from New Jersey is seriously ill with sarcoma, a rare type of cancer,…

Crypto cheater gambles away $1.5 million in casinos in Las Vegas
Crypto cheater gambles away $1.5 million in casinos in Las Vegas

Within only 18 months, two men from the US state of Arizona with a pyramid system are said to have…

Gambling mishaps international - not only in Germany
Gambling mishaps international - not only in Germany

Those who sat in front of the television last Saturday full of suspense with their lottery ticket and were waiting…

Messe Wien wins Coca-Cola as partner
Messe Wien wins Coca-Cola as partner

The soft drink giant sponsors the gaming and eSports format Vienna Challengers Arena. The gaming and eSports format Vienna Challengers…

Devilfish Cup - Perfect start for Niko Koop
Devilfish Cup - Perfect start for Niko Koop

As part of the World Poker Tour Nottingham, the Devilfish Cup has been taking place since yesterday at the famous…

League of Legends: Transfers of the week
League of Legends: Transfers of the week

After the Worlds 2019, the transfer carousel is spinning rapidly. Some teams use the off-season to restructure and refine their…

Fnatic: 15 years at the forefront of esports
Fnatic: 15 years at the forefront of esports

According to Fnatic founder Sam Mathews, the growth of e-sports in the last 15 years has been "crazy, honestly amazing".…

Banco Casino Masters go into their 20th edition - €100,000 guaranteed!
Banco Casino Masters go into their 20th edition - €100,000 guaranteed!

The popular tournament series Banco Casino Masters goes into its 20th edition. From 16.10. - 21.10.2019, the biggest regular tournament…

LeBron in the crossfire: China-Zoff splits the NBA
LeBron in the crossfire: China-Zoff splits the NBA

LeBron James doesn't want to talk anymore, at least not about China. Not about his remarks about the Twitter crisis,…

Mybetting Deals Tools

Surebet by BetBurger

Surebet by BetBurger

BetBurger is a service focusing on arbitrage bets, also known as sure bets. It turns sports betting into an investment.

Matched Betting by OddsMonkey

OddsMonkey

OddsMonkey offers matched betting services with features to enhance your profits with the best betting offers.

Live Sport Results and Statistics

Live Scores

Always keep ahead of the sports betting game with our real time results and statistics!

2000+ Free Slots

Play the best online slots and your favourites from the biggest developers for free right here!