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The European online gaming market is expected to grow significantly. Projections indicate that the market will increase from $52.30 Billion in 2024, to $88.16 Billion by 2029. This represents an annual growth of 11.01%. Curacao, a long-time leader in the market, has undergone recent regulatory changes. Operators are also increasingly interested in alternative jurisdictions, such as Kahnawake Anjouan, and Tobique.
Curacao’s new regulatory changes
Many operators, particularly in the early stages of operations, have historically chosen a Curacao license due to its simplicity and accessibility. This ease of access is now diminished with the recent revamp of the Curacao license system. The Curacao Gambling Control Board has a stricter licensing and monitoring procedure for operators. It places a greater emphasis on safe and responsible gambling.
Legal challenges facing Curacao licensed operators in Europe
Several operators licensed in Curacao have recently been sued in European countries. Some were ordered to refund players’ losses. Dama N.V., for example, was ordered to refund EUR816,852 in Austria and UAE. A Curacao license holder was also ordered to reimburse players’ losses from Germany and Austria.
Both companies warned these rulings were a threat as they created an “environment of risk-free gambling” for players. They allowed them to place wagers and sue for refunds, if they lost. In some European countries such as Austria where gambling is heavily regulated, bets made on offshore platforms can be deemed void and illegal for both players and operators. Austria recently required that a player return any winnings they received after betting on an offshore platform to the operator. This was done to discourage opportunistic suits.
Curacao Court’s Response
The Curacao Court upheld the European court’s judgments in the case of Dama N.V. The Curacao Court declared, that since licensed operators weren’t paying their debts, they were in an unpaid state and declared them bankrupt. Dama N.V. was able to overturn this judgment by proving that it had “financially sound” status.
Malta, on the other hand, has adopted a completely different approach. Bill No. 55 protects licensees against foreign court interference. If an European player sues the license of a Maltese operator, Maltese court will uphold that operator’s licence if it is compliant with Maltese laws, effectively blocking foreign judgements.
The European Court of Justice will now determine, based on the increasing number of claims made by German and other European gamblers, whether they can legally claim refunds from offshore operators.
Alternative licenses in Kahnawake Anjouan and Tobique
Kahnawake Anjouan and Tobique are attractive alternatives to other more popular jurisdictions.
Kahnawake Located in Canada and issuing gambling licenses since 1996, Kahnawake is one of Canada’s oldest jurisdictions. It is renowned for its strict regulatory framework and legal resistance against opportunistic lawsuits. Kahnawake operators can expect a predictable and stable legal environment that helps minimize costly legal issues.
Anjouan Anjouan is part of the Union of the Comoros and offers favorable conditions for online gambling operators. This includes the lack of a requirement to have a physical presence within the jurisdiction. Operators can avoid the direct supervision of local courts and reduce the risk that they will receive unfavourable decisions. Anjouan offers a flexible business environment and reliable legal protections, making it a good option for those who want to minimize legal risks.
Tobique : Based in Canada too, Tobique offers a unique licensing system characterized by a flexible management style and a stable legal environment. Tobique, like Anjouan does not require physical presence from operators and offers strong protections against lawsuits. Tobique is therefore a good choice for operators who are looking for a stable and secure licensing base.
What to consider when evaluating alternative jurisdictions
Operators can benefit from alternative jurisdictions in several ways.
– Protection from opportunistic suits: These jurisdictions provide strong protection against frivolous and opportunistic suits, reducing the likelihood of expensive legal battles.
– Flexible management of jurisdiction: Many alternative licenses don’t require physical presence within the licensing jurisdiction. This allows operators to avoid local court supervision.
– Stability, predictability and predictability. By selecting a jurisdiction that has a predictable and stable legal environment, operators are better able to protect their business from legal uncertainty.
