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Kahnawake, Anjouan, or Tobique: The Best Alternatives When Curaçao Licenses Fall Short
The European online gambling market is set for significant growth, with projections indicating an increase from $52.30 billion in 2024 to $88.16 billion by 2029, reflecting an annual growth rate of 11.01%
Curaçao has long been a key player in this market and has recently undergone regulatory changes. Meanwhile, alternative jurisdictions such as Kahnawake, Anjouan, and Tobique are increasingly drawing the attention of operators.
Regulatory Changes in Curaçao
Many operators have traditionally opted for a Curaçao license due to its accessibility and straightforward process, especially during the initial stages of operation. However, with the recent overhaul of the Curaçao licensing system, this ease of access has diminished. Operators now face a more rigorous licensing and monitoring process by the Curaçao Gambling Control Board, which is increasingly prioritizing safe and responsible gambling practices.
Legal Challenges for Curaçao-licensed Operators in Europe
Recently, several operators licensed in Curaçao faced lawsuits in European countries, with some being ordered to refund losses to players. For instance, Dama N.V. was ordered in Austria and the UAE to repay €816,852. Another Curaçao license holder was similarly ordered to refund players’ losses in Germany and Austria.
Both companies warned that these rulings posed a threat, as they created a “risk-free gambling” environment for players, allowing them to place bets with the option to sue for refunds if they lose. In a few European countries, such as Austria, where the gambling market is heavily regulated and monopolized, any bets placed on offshore platforms are deemed illegal and void for both operators and players. Recently, Austria required a player to return their winnings to the operator after placing bets on an offshore platform, to discourage opportunistic lawsuits.
Curaçao Court’s Response
In the cases of Dama N.V. and other operators., the Curaçao court chose to uphold the judgments of the European courts. The Curaçao court declared that, since the licensed operators were not paying their debts to the players, they were in a state of ceased payment and declared them bankrupt. However, Dama N.V. later succeeded in overturning this judgment by proving to the Curaçao court that it was “financially healthy.”
Meanwhile, Malta has taken a different approach with the promulgation of Bill No. 55, which protects its licensees from foreign court interference. If a European player sues a Maltese-licensed operator, Maltese courts will uphold the operator’s license, provided it complies with Maltese law, effectively blocking foreign judgments.
Given the growing number of claims, the European Court of Justice is now set to determine whether German and other European bettors can legally claim refunds for their losses from offshore operators.
Alternative licenses in Kahnawake, Anjouan, and Tobique
Kahnawake, Anjouan, and Tobique have emerged as appealing alternatives to more well-known jurisdictions.
Kahnawake: Located in Canada, Kahnawake is one of the oldest jurisdictions and has been issuing gambling licenses since 1996. It is known for its stringent regulatory framework and legal resistance to opportunistic litigation. Operators licensed in Kahnawake can expect a stable and predictable legal environment, which helps minimize costly legal issues.
Anjouan: Anjouan, part of the Union of the Comoros, offers favorable conditions for online gambling operators, including the absence of a requirement for a physical presence in the jurisdiction. This allows operators to avoid direct oversight by local courts, reducing the risk of unfavorable rulings. Anjouan’s flexible business conditions and reliable legal protections make it an attractive option for those looking to minimize legal risks.
Tobique: Also based in Canada, Tobique provides a unique licensing environment characterized by flexible management and a stable legal framework. Like Anjouan, Tobique does not require operators to have a physical presence and offers strong protection against lawsuits. This makes Tobique an appealing choice for operators seeking a secure and stable licensing base.
What to Look for When Considering Alternative Jurisdictions
These alternative jurisdictions offer several key advantages for operators:
- Protection against opportunistic lawsuits: These three jurisdictions often provide strong safeguards against frivolous or opportunistic lawsuits, reducing the risk of costly legal battles.
- Flexible jurisdiction management: Many alternative licenses do not require a physical presence in the licensing jurisdiction, allowing operators to avoid direct local court oversight.
- Stability and predictability: By choosing a jurisdiction with a stable and predictable legal environment, operators can better protect their businesses from legal uncertainties.
Stoyan holds over 9 years of esports and gambling writing experience under his belt and is specifically knowledgeable about developments within the online scene. He is a great asset to the Gambling News team with his niche expertise and continual focus on providing our readers with articles that have a unique spin which differentiates us from the rest.
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