Economou & Co LLC successfully acted for the Respondent in what is understood to be a first-of-its-kind Cyprus judgment concerning Cyprus public policy objections to the recognition of Austrian judgments arising from online gaming-related losses.

The application sought the refusal of recognition of those judgments on public policy grounds under Regulation (EU) 1215/2012 (the “EU Regulation”), which governs the recognition and enforcement of judgments between EU Member States. Under Article 45(1)(a) of the EU Regulation, recognition may be refused only where the recognition of such judgment is manifestly contrary to the public policy in the Member State addressed.

The District Court of Nicosia dismissed the application, holding that the strict threshold for refusing the recognition of judgments from other EU Member States on public policy grounds had not been met. In doing so, the Court considered leading authorities on the narrow scope of the public policy exception, including Apostolides v. Orams C-420/07, C-681/13, Diageo Brands BV v. Simiramida-04 EOOD, Ertasio Holdings Limited v. Joint-Stock Commercial Bank “Bank of Moscow” (Open JointStock Company), Civil Appeal 71/2016.

In line with those authorities, the Court noted that a difference between the law applied by the foreign court and the law that may apply in Cyprus is not, by itself, sufficient. Public policy refusal requires a manifest breach of a rule regarded as essential to the legal order of Cyprus, or of a right recognised as fundamental within that legal order.

The judgment is significant for online gaming operators, betting companies, payment intermediaries, electronic money institutions, payment service providers and other businesses involved in cross-border disputes connected with online gaming losses, betting regulation and the movement of gaming-related funds. It provides important Cyprus guidance on the limits of public policy objections within the EU judgment recognition framework.

The decision is also relevant for payment intermediaries seeking advice on their exposure to cross-border enforcement proceedings, public policy objections, account-related measures, and disputes arising from payments connected to online gaming activity.

The above success further reflects Economou & Co LLC’s experience in complex disputes at the intersection of online gaming, betting regulation and EU private international law.