German online sportsbetting providers Mybet Holdings SE announced this Monday that they’ve reached a settlement with retail lottery operators Westlotto (Westdeutsche Lotterie) for the “cartel infringement” damage claims Mybet have legally filed against the company. The settlement comes after a decade-long legal battle between the two and would see Mybet compensated with €11.8 million ($13.03 million) during the second quarter of 2017.
The court battle began when Westlotto filed an injunction against Mybet for selling “over-the-counter” lottery products in Germany. Mybet appealed the injunction, which the High Court of Dusseldorf voted in favor of in 2014, on the grounds that the injunction was improper as it breached the country’s free market and competition laws. The ruling was then appealed by Westlotto and taken to the Federal Supreme Court, but from there it was again referred to the Dusseldorf court, thus resulting in the settlement which is to finally end the legal dispute.
The settlement will be paid to Mybet subsidiary SWS Services, a special vehicle the Dusseldorf Court awarded the damage settlement to. However, out of €11.8 million in settlement money, the company will only receive approximately €4.9 million ($5.4 million), due to an agreement for “interim-financing with profit participation” between Mybet and a third party, which remains undisclosed.
Per the agreement, Mybet are required to pay back the original €4 million ($4.41 million) they took from the creditor, plus a sum of 50% of the loan, an additional 15% of the remaining settlement money, as well as a 3% yearly commitment fee, which equals to €6.9 million ($7.62 million), leaving Mybet with only the said amount.
In the official press release, CEO of Mybet Holdings, Markus Peuler, said they were satisfied a solution has been reached by a mutual consensus. He adds that the funds will improve the company’s financial situation and will be used to form a new foundation for their financial planning in 2017. They’ve scheduled an annual general meeting on August 31st, 2017, short after Mybet’s full-year financial reports are published.