EU courts weaken financial shield of Curaçao-licensed casino operators
The Court of Justice of the European Union (CJEU) has received a legal opinion that could mark a definitive turning point for the unregulated iGaming market within the bloc. Advocate General Rimvydas Norkus has issued his conclusions regarding case C-716/24, suggesting that courts in Member States should have the power to freeze the bank accounts of online gambling operators with overseas licenses, even if these companies are undergoing insolvency proceedings in their home jurisdictions. This stance seeks to protect the rights of European creditors and players, limiting the ability of companies from outside the Union to use payment structures in financial centers like Cyprus while evading legal responsibilities in countries like Germany.
The dispute that gave rise to this interpretation involves a German player seeking to recover approximately 57,000 euros in losses suffered on a platform operated by DX Ltd NV, a firm incorporated in Curaçao. After obtaining a favorable judgment in Germany, the plaintiff attempted to use the European Account Preservation Order (EAPO) to block funds the company held in Cypriot banks. The conflict arose when it became known that the operator was in liquidation in Curaçao, a territory that, being outside the EU's legal framework, is not aligned with the European Insolvency Regulation.
The end of insolvency immunity in third-country jurisdictions
Advocate General Norkus's reasoning is clear in stating that the EAPO mechanism was designed to be a uniform cross-border enforcement tool throughout the European Union. According to the jurist, allowing the national recognition of a foreign insolvency proceeding to automatically block a preservation order would undermine the primary objective of community regulation. The opinion emphasizes that the effects of an insolvency in a third country must be evaluated at the final enforcement stage and not at the initial moment of issuing the precautionary measure to freeze funds.
This distinction is vital because the EAPO functions as a temporary measure to secure assets before they disappear. If European courts were prevented from acting simply because a company declares insolvency in a tax haven, the EU's debt recovery system would be fragmented and at the mercy of the national laws of each Member State that decides, or not, to recognize legal processes from outside the bloc. In practice, this means that funds in accounts in Malta, Luxembourg, Ireland, or Cyprus are once again on the radar of justice to compensate affected players.
A tightening legal environment for offshore iGaming
Norkus's opinion is not an isolated event. It adds to a trend of legal tightening that has accelerated in the first months of 2026. Just in January of this year, the CJEU ruled in the Wunner case (C-77/24) that plaintiffs can file claims under the laws of their country of residence when prosecuting operators without a national license. That ruling favored Austrian courts, establishing that disputes can be pursued under consumer and civil liability laws, regardless of the lack of harmonization of gambling laws in the European Union.
The combination of these rulings suggests that the legal refuge offered by licenses from Curaçao or other similar jurisdictions is cracking. Many of these operators rely on European payment infrastructure to process deposits and withdrawals from their customers, often without holding national licenses in the markets where their players reside. Now, with the possibility of their bank accounts being frozen quickly and uniformly in any EU country, the operational risk of serving European customers from "offshore" rises to unprecedented levels.
Tags: Curaçao, Curaçao, Curaçao gambling regulation, offshore casinos, Europe blocks offshore casinos