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

GTA Online could now finally let you into the casino after 5 years

GTA Online could now finally let you into the casino after 5 years

In the online mode of GTA 5, GTA Online could soon launch a huge number. The opening of the casino.…

Formula 1: Hamilton wins with a flat tyre, and lousy luck hits Sainz

Formula 1: Hamilton wins with a flat tyre, and lousy luck hits Sainz

In a chaotic finish full of punctures, Hamilton crossed the finish line with a blown-out wheel. He was able to…

At the

At the "LoL" World Championships e-athletes fight for millions

The World Championship in "League of Legends" has begun. 2019 could be the year of the Europeans. The World Cup…

GGSeries - lots of action, big and small winners

GGSeries - lots of action, big and small winners

At GGPoker, the action continues as part of the GGSeries. Basically, GGPoker has everything the poker heart desires, whether high…

EA has big plans with Apex Legends

EA has big plans with Apex Legends

EA wants to get Apex Legends out on the big screen: As the main franchise, the game will be provided…

LoL World Champion with Overwatch Team

LoL World Champion with Overwatch Team

T1, who are best known for their League of Legends successes, are founding an Overwatch team & want to compete…

PUBG: The Global Series 2020 comes to Berlin

PUBG: The Global Series 2020 comes to Berlin

Following the end of the 2019 PUBG season, the publisher has now revealed the details of the structure of the…

Ex-HSV star Thomas Gravesen lost over $50 million playing poker

Ex-HSV star Thomas Gravesen lost over $50 million playing poker

Football bully Thomas Gravesen was known and feared as a tough player in his active days. But also his funny…

The world-famous singer The Weeknd invests in eSports

The world-famous singer The Weeknd invests in eSports

The world-famous RnB and hip-hop singer The Weeknd is now also involved in eSports: He invests in the multimedia company…

Ivey's Return to the TV Highstakes Tables

Ivey's Return to the TV Highstakes Tables

Phil Ivey rarely shows up for poker transmissions anymore. So it's all the more pleasing when he shows himself again,…

Column: The eternal life of Counter-Strike - Part 1

Column: The eternal life of Counter-Strike - Part 1

Counter-Strike celebrated its 20th birthday last month. In a time that is characterized by short-termism, transience and the new, this…

Messi pulls Barca to eliminate Naples

Messi pulls Barca to eliminate Naples

A goal from corner, a penalty and a stellar manoeuvre by Messi, Barça secured its presence in the quarterfinals of…

KIT SC eSport-Team becomes EM second
KIT SC eSport-Team becomes EM second

 KIT SC's eSports team has won second place at the European University eSports Championships in Madrid. The first League of…

WSOP International Circuit for the 3rd time at Holland Casino Rotterdam
WSOP International Circuit for the 3rd time at Holland Casino Rotterdam

Holland Casino Rotterdam will once again be the venue for the World Series of Poker (WSOP) International Circuits from 14th…

Modric teases Ronaldo:
Modric teases Ronaldo: "In football, respect is important"

At the end of the Ballon d'Or Gala in Paris, superstar Lionel Messi presented his trophy for the best footballer…

Qualifying and grid of the Tuscan Formula 1 Grand Prix
Qualifying and grid of the Tuscan Formula 1 Grand Prix

That's all for today at the Tuscan Grand Prix. One more day Hamilton takes the pole ahead of his teammate…

FIFA eWorld Cup again in London
FIFA eWorld Cup again in London

The FIFA eWorld Cup in August will again take place in London. German gamers like Michael "MegaBit" Bittner are also…

EM qualification: Slovakia wants to fill stadium against Wales with children
EM qualification: Slovakia wants to fill stadium against Wales with children

The Slovak Football Association SFZ has a creative idea to avoid the exclusion of spectators in the home match against…

Walmart invites you to E-Sport and shopping
Walmart invites you to E-Sport and shopping

All stationary retailers are faced with the challenge of persuading customers to visit the store regularly. And not just since…

League of Legends: Clash returns!
League of Legends: Clash returns!

On December 7th and 8th, League of Legends will bring the tournament mode "Clash" back to the Summoner's Rift as…

Pensioner skims 100,000 francs at casino
Pensioner skims 100,000 francs at casino

A pensioner spent the Monday afternoon in the Casino St. Gallen. She then went home with 100,000 francs. She sweetened…

Here's how the Liga standings look at the end of the season
Here's how the Liga standings look at the end of the season

A Liga dae Espana finished with Real Madrid as the best team of the year. After beating an underdog, Barcelona…

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!