Online gambling and foreign bank accounts: EU court opinion opens door to asset seizure even if operator is insolvent outside the Union
A legal dispute over online gambling losses could help clarify whether authorities can freeze a gambling operator’s bank accounts when the company is already subject to insolvency proceedings outside the European Union. The issue arose when, on 5 March 2026, Advocate General Rimvydas Norkus of the Court of Justice of the European Union opined that this may be possible.
The case concerns a player living in Germany who won an enforceable judgment from the Frankfurt Regional Court. The court ordered an online gambling operator to reimburse approximately €57,000 in losses from internet gambling. The debtor is a company based in Curaçao, a jurisdiction often used by online gambling operators offering services internationally.
After obtaining the ruling, the claimant asked German authorities to identify any bank accounts the company held in other EU countries, especially in Cyprus, with the intention of freezing those funds under the European Account Preservation Order procedure provided by EU law.
Legal uncertainty surrounding insolvency in a third country
During the proceedings, a development emerged that raised a significant legal question. Specifically, according to the Curaçao company register, insolvency proceedings – which are formal legal steps taken when a company cannot pay its debts – had, in the meantime, been initiated against the gambling operator.
This raised a key legal question. Can insolvency proceedings started in a non-EU country, but recognised by an EU Member State, stop the use of the European procedure for freezing bank accounts?
The Higher Regional Court of Frankfurt suspended the case and asked the Court of Justice of the European Union to clarify how the regulation on the European Account Preservation Order should be interpreted. The main issue is Article 2, which says the regulation does not apply to claims against debtors in insolvency proceedings.
The Advocate General’s interpretation
Advocate General Rimvydas Norkus argued that the exclusion should not automatically apply to insolvency proceedings initiated in countries outside the EU. He explained that the European regulation on freezing accounts refers only to insolvency procedures governed by EU law and initiated in EU Member States.
In this case, the insolvency proceedings began in Curaçao, which the European Union considers a third country. Decisions adopted in such jurisdictions do not fall within the system of automatic recognition provided by EU insolvency law.
That framework is based on the principle of mutual trust between Member States. Under this system, insolvency proceedings opened in one Member State are automatically recognised across the EU. This approach ensures the effects of insolvency extend uniformly, and creditors are treated equally.
The risk of regulatory fragmentation
The Advocate General warned that if the regulation’s exclusion automatically covered insolvency proceedings in third countries, it could create legal differences across the EU.
If the issue were left to national legal systems, some Member States might refuse to issue an account preservation order because they recognise the foreign insolvency proceedings. Others might still allow it. Such divergence would undermine the uniform application of the European instrument and reduce its effectiveness.
The European Account Preservation Order was created to help recover debts across borders in the EU. It lets creditors quickly freeze funds in bank accounts in other Member States. This prevents debtors from moving or withdrawing money before a court decision is enforced.
The role of the enforcement stage
The Advocate General stated that starting insolvency proceedings in a third country should not prevent a court in an EU Member State from issuing a European Account Preservation Order.
However, this does not mean the foreign insolvency procedure is irrelevant. Norkus emphasised that the principle of equal treatment among creditors can be safeguarded during the enforcement stage. This is when the freezing order is implemented in the Member State where the bank accounts are located.
At that stage, national authorities examine the effects of the insolvency proceedings – legal processes where a debtor’s assets are administered to pay creditors – if their country recognises them. These authorities then decide whether freezing the funds is compatible with the applicable legal framework.
Implications for the online gambling sector
The Advocate General’s opinions are not binding on the Court of Justice of the European Union. However, they often show how the Court may decide. If the Court agrees, the ruling could have a big impact on the online gambling sector.
Many online gambling companies operate through corporate structures registered in offshore or non-EU jurisdictions such as Curaçao, Malta, and Gibraltar. These locations license companies that serve international customers. The global online gambling market grows quickly. According to estimates by Statista and H2 Gambling Capital, the sector generated more than $95 billion in revenue in 2024.
Because the industry operates across borders, it is hard to recover debts and enforce court decisions. This is especially true when companies are based outside the EU but have customers inside the European market.
A potential turning point for players seeking reimbursement
This case shows how complicated online gambling litigation in Europe can be. Many operators are registered offshore. They also use bank accounts in several EU countries.
If the Court of Justice agrees with the Advocate General, the European system for freezing bank accounts could become an important tool for players trying to recover gambling losses.
This could strengthen the European framework for cross-border debt recovery. It could also put more pressure on gambling operators that use offshore structures but target EU consumers.
This article was first published in Italian on 11 March 2026.
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