The Court of Justice of the European Union (CJEU) issued a landmark ruling on Wednesday, April 18, 2026, declaring that EU member states have the right to prohibit specific online gambling services, even when operators hold valid licenses from other EU countries. Crucially, the decision allows consumers to sue for restitution of losses incurred under gambling contracts that violate such national bans.
Case C-440/23: National Ban Trumps Cross-Border License
The judgment came in a case brought by a German player against Lottoland, a Malta-licensed operator. Between June 2019 and July 2021, the player placed bets on virtual slots and lottery draws offered by Lottoland, a period when Germany's Interstate Treaty on Gambling effectively banned most online casino products. The player sought to recover all stakes lost. Lottoland argued that its Malta Gaming Authority (MGA) license and the EU’s freedom to provide services under Article 56 of the Treaty on the Functioning of the European Union should override German restrictions. The court rejected this, stating that “a license from one EU country does not grant the right to serve customers in another where those products are banned.” The judges also ruled that Germany's subsequent legalization of online gambling in July 2021 did not retroactively validate Lottoland's earlier operations.
Binding Precedent Across EU; Billions in Claims Unfrozen
The ruling is binding on all 27 EU member state courts. German civil courts had already issued numerous judgments favoring players but had stayed those cases pending the CJEU's clarification. Thousands of pending claims can now proceed. Legal experts estimate potential refunds worth billions of euros across the German market alone. Similar lawsuits are already being filed in Austria against Malta-based operators. The decision follows a related CJEU ruling in January 2026 that allowed players to sue company directors personally under their home country’s laws. Another case involving Tipico is pending; the Advocate General issued an opinion on March 19 that unlicensed sports betting operators may also have to refund stakes.
Malta License Shield Cracks; Crypto Casinos Exposed
Malta is a major licensing hub for crypto-native gambling operators, with the MGA framework often used by platforms accepting cryptocurrency deposits. If these licenses no longer shield operators from civil liability in member states that ban their products, crypto casinos operating under the same Maltese frameworks face identical exposure. Malta’s Bill 55, which bars enforcement of foreign judgments for player refunds in Maltese courts, remains a primary defense—but the CJEU ruling now requires Maltese courts to take the judgment into account, potentially weakening that shield.