The Court of Justice of the European Union has ruled that Member States can prohibit certain forms of online gambling, even where operators are licensed in another EU jurisdiction, reinforcing national control over gambling regulation.
The judgment, delivered in Case C-440/23 involving European Lotto and Betting and Deutsche Lotto und Sportwetten, confirms that such restrictions can be compatible with EU principles on the freedom to provide services.
The case centred on Malta-licensed operators offering virtual slot games and lottery betting to players in Germany between June 2019 and July 2021, a period during which German law largely prohibited online casino-style gaming.
A German player who incurred losses pursued restitution, with the claim later transferred to a third party and brought before a Maltese court. The case was referred to the EU Court to assess whether Germany’s restrictions conflicted with EU law.
The court held that national prohibitions on online casino games, including virtual slots, as well as certain betting formats, can be justified on public interest grounds. These include consumer protection and the safeguarding of social order. It also confirmed that, in the absence of harmonised EU-wide legislation, Member States retain broad discretion to define their regulatory frameworks and levels of protection.
The ruling highlights the court’s view that online gambling presents elevated risks compared to land-based environments, citing continuous accessibility, player anonymity and higher frequency of participation as key factors supporting stricter controls.
Crucially, the court states that holding a valid licence in another Member State does not override national restrictions. Strong consumer demand for online products does not alter that position.
The judgment also addresses Germany’s transition to a regulated licensing system from July 1st, 2021, noting that the shift does not invalidate the previous prohibition. Contracts entered into during the restricted period may still be deemed void under national law. The decision leaves national courts to determine the legal consequences, including potential restitution of player losses. For operators, the ruling underlines the continued fragmentation of Europe’s online gambling market, where cross border ambitions remain constrained by domestic regulatory authority.
