Austrian gamblers are scrambling to make up for lost money betting on websites owned by 888 and Flutter. The country’s Supreme Court ruled that Flutter operates illegally because it violates the federal gambling monopoly.
Since 2019, lawyers and litigation finance firms have funded thousands of lawsuits on behalf of gamblers. Casinos Austria, a state-backed gambling company, has monopolized casino operations since 2016, and Austria’s three highest courts have since ruled that other gambling companies are operating illegally and should recoup their losses. I have ruled that it is.
According to data provided by three major legal groups – AdvoFin, G&L Rechtsanwälte and Lawyer Oliver – as of the end of January, more than 2,500 gamblers had made a total of 75.8 million, following court rulings and out-of-court settlements. Euro losses have been repaid. Peschel. Companies receive a portion of the payment.
However, the €34 million payment has been withheld longer than the two-week grace period set by the court. The attorney working on the case says the main culprits are her Flutter and the 888-owned website. They are now seeking enforcement action in a Maltese court where the two gambling groups are headquartered.
PokerStars, a brand owned by Flutter, has withheld around €17 million and paid out only €1,795 after losing the case, according to data compiled by three legal groups acting on behalf of gamblers. Mr. Green, owned by 888, he refused to pay €12.6 million, while another of his 888 brands, William Hill, said in a losing ruling that he would give him two-thirds of the €6.7 million in cash. withheld.
Flutter’s legal team believes that since most of PokerStar’s business is focused on poker, where gamblers play against each other rather than at home, Flutter only receives commissions, so the company does not It claims not to be responsible for any loss.
The 888-owned brand previously paid around €8 million, but has stopped paying in recent months, according to all three legal groups involved. 888 acquired William Hill and Mr Green as part of his £1.95 billion acquisition last July.
Ladbrokes owner Entain paid a total of €41 million for all judgments. Lawsuits against a number of gambling groups related to claims worth €61 million are still pending.
Most groups continue to operate in Austria, despite a Supreme Court ruling arguing that gambling monopolies violate fundamental rights guaranteed by EU law, including the freedom to provide services.
PokerStars said it legally operates in Austria under a Maltese licence, “subject to freedom of service between Member States under EU law” and the Austrian ruling states that “these established EU legal It is inconsistent with the principle,” he added.
888 said, “This group continues to challenge the compatibility of the Austrian licensing system with EU law,” adding that the Maltese gaming authority shares its view. Flutter and 888 said they intend to fight court enforcement proceedings filed in Malta.
Lawyers for those suing the gambling group allege that certain operators failed to follow Austria’s “know your customer” consumer protection and anti-money laundering rules.
AdvoFin lawyer Sven Thorstensen wrote to 888 Chairman Sir Jonathan Mendelsohn in January. The letter, seen by the Financial Times, cites the case of a customer who lost €311,000 on Mr Green’s platform.
“Mr. Green Corporation will never [made] contact her to inquire about the source of these funds, [whether] She could suffer such a huge loss financially,” wrote Torstensen, who accused the company of failing to comply with anti-money laundering and consumer protection rules. predates Mr. Green’s ownership.
In January, 888 fired Chief Executive Officer Itai Pazner and launched an investigation into his failure to follow anti-money laundering processes on VIP customer accounts. It has also frozen £50m of customer accounts in the Middle East as part of its investigation.
The UK Gambling Commission has fined 888 a total of £17.2m in two penalties issued in 2017 and 2022 for consumer protection and money laundering failures.
