EU courts may freeze gambling firms' assets despite foreign insolvency
A recent legal opinion suggests European courts could freeze the bank accounts of gambling operators even during insolvency proceedings abroad. The case centres on a dispute in Germany involving a Curaçao-licensed online gambling firm. The company was ordered to repay €57,000 in losses but later entered insolvency in its home jurisdiction.
The issue began when a German court ruled that the operator must return €57,000 to a consumer. Before the repayment could occur, the company started insolvency proceedings in Curaçao. This raised the question of whether such proceedings should block asset freezes in Europe.
EU law typically restricts enforcement actions against companies undergoing insolvency within the bloc. However, Advocate General Rimvydas Norkus argued that insolvency outside the EU should not prevent European courts from securing funds. His opinion suggests using the European Account Preservation Order, a tool designed to protect cross-border claims.
While the opinion is not legally binding, the Court of Justice of the European Union often follows such recommendations. The case now awaits a final ruling from the court.
If adopted, the ruling could allow European authorities to freeze assets of offshore gambling firms despite foreign insolvency proceedings. The decision would apply specifically to operators licensed outside the EU but facing legal claims within it. The outcome may affect how similar disputes are handled in the future.
