A Munich district court has rejected a claim brought by a German bank against a customer who refused to repay their gambling debt, further complicating the country’s payment blocking regime.
A February ruling, which became final last week, held that Landesbank Berlin could not hold a Visa credit card holder responsible for a gambling debt because online casinos are not legal in Germany.
The court said the payment was marked with a specific merchant category code that identified the transaction stemmed from gambling, and the bank could have easily determined whether the online operators were on a “whitelist” of approved operators.
The player was also charged as much as €30 extra for a transaction carrying that code, according to the ruling.
Request a Free Trial
As a trusted source of regulatory intelligence for the global payments industry, we enable organisations to manage the growing volume and velocity of regulatory risk with confidence, empowering more informed and effective decision making, in an efficient and cost-effective way.Take a Trial