Casino Losses – The ‘Instant Compensation’ Business

Casino Losses - The 'Instant Compensation' Business

More than two years ago we asked ourselves in an article whether it is a good idea to claim back casino losses afterwards. At that time, we came to the conclusion that this approach could potentially lead to our own criminal proceedings. In addition, such an approach can be seen as morally reprehensible and the (problematic) gaming behavior is usually not improved as a result. Anyone who is currently looking for ways on the Internet to reclaim the losses they have suffered in the online casino will see a number of law firms and providers who have specialized in exactly this.

The problem: These providers pursue financial interests themselves. Therefore, more and more attempts are being made to cheaply buy the promising casino claims from the mostly inexperienced players.

Claiming back casino losses – when is that possible and useful?

If a player has lost money in the online casino in the past, then he may have the opportunity to claim back the casino losses suffered from the provider. The prerequisite for this is that it is a gambling provider who did not have a valid gambling license at the time, i.e. was illegal. However, no claim for repayment can be derived from the pure illegality of the offer. For example, last summer we reported on a judgment by the LG Wuppertal in which the court explicitly refused reimbursement for casino losses.

And even if a court orders an online casino to reimburse players for losses, that still does not mean that the player ultimately gets his money back. An article published in August last year was about the fact that a gambling provider did not reimburse the lost amounts despite a final judgment by the Osnabrück Regional Court.

In the past we have reported on casino loss recovery several times. In the meantime, there are already a number of judgments, which are often also in the interests of the players. The increasing player-friendly judgments have meant that more and more law firms want to make money from it. They often offer so-called “instant compensation” to players. But should players take such a deal?

More than two years ago we asked ourselves in an article whether it is a good idea to claim back casino losses afterwards. At that time, we came to the conclusion that this approach could potentially lead to our own criminal proceedings. In addition, such an approach can be seen as morally reprehensible and the (problematic) gaming behavior is usually not improved as a result. Anyone who is currently looking for ways on the Internet to reclaim the losses they have suffered in the online casino will see a number of law firms and providers who have specialized in exactly this. The problem: These providers pursue financial interests themselves. Therefore, more and more attempts are being made to cheaply buy the promising casino claims from the mostly inexperienced players.

Claiming back casino losses – when is that possible and useful?

If a player has lost money in the online casino in the past, then he may have the opportunity to claim back the casino losses suffered from the provider. The prerequisite for this is that it is a gambling provider who did not have a valid gambling license at the time, i.e. was illegal. However, no claim for repayment can be derived from the pure illegality of the offer. For example, last summer we reported on a judgment by the LG Wuppertal in which the court explicitly refused reimbursement for casino losses.

And even if a court orders an online casino to reimburse players for losses, that still does not mean that the player ultimately gets his money back. An article published in August last year was about the fact that a gambling provider did not reimburse the lost amounts despite a final judgment by the Osnabrück Regional Court.

Online gambling has been largely legal in Germany since July 1, 2021. However, the gambling providers must apply for a corresponding license from the federally responsible Joint Gaming Authority of the States (GGL). This can currently be requested for sports betting, virtual slot machines and poker. A recovery of casino losses is of course out of the question with these licensed providers.

How does the “immediate compensation” business work in online casinos?

In the past, a number of German players lost money in online casinos. Since the Best online casinos were operated without the required license, some resourceful law firms see an opportunity to reclaim casino losses. There are already many judgments in the interests of the players. Only recently, for example, the Supreme Court in Austria ruled that losses suffered in online poker may be reclaimed from a casino operator. For this reason, the law firms active in this area have started to buy at least the promising claims from the players as cheaply as possible – there is talk of so-called “immediate compensation”.

For the casino player, this type of compensation sounds very tempting. He gets back part of his losses from the online casino without a long wait and only has to send the necessary documents to the lawyer. But how exactly do “immediate compensation” work in practice?

  1. Leave information (e.g. contact details, evidence of losses, casino name)
  2. Claim is being examined (lawyers will check how promising the case is)
  3. Player receives offer and signs declaration of assignment
  4. Player receives the agreed compensation amount immediately from the lawyer (debt purchase)

Conclusion

In conclusion, it can be stated that the business with “immediate compensation” is morally and legally questionable in many cases. In this way, many inexperienced gambling fans are asked to pay a second time. After they have lost in the online casino, the promising claims are bought cheaply from the player so that the law firms can rake in the highest possible profits. The alternative for casino players is to enforce the claims themselves with the help of a lawyer. In this case, if the court agrees with the player, the full amount of casino losses will be refunded. Or you just accept the fact that you weren’t lucky and accept the loss.

About Kevin Rendel 98 Articles
I'm Kevin Rendel and I'm testing online casinos for you. As a journalist and gambler I have been working in the iGaming sector for many years. Before that I published books and produced content for websites. At Casinova.org I am responsible for the English and German language content of the casino guide. In the online casino I know exactly what is important. I do not hesitate to call myself a real expert and I assure you, gamblers can rely on me and my experience!

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