I find it interesting that cloudflare is okay with those piracy sites getting its shared IPs blocked, while a couple of years ago they forced a casino to shell out for the enterprise plan and dedicated IPs to contain the fallout of banned IPs.

They are not okay with it, they first in march tried to get it annulled that was rejected by the courts [1]. Now they are appealing in the constitutional court [2]. Spanish sources:

[1] https://www.genbeta.com/actualidad/gol-laliga-a-cloudflare-j...

[2] https://www.xataka.com/legislacion-y-derechos/bloqueos-ip-la...

Cloudflare also said they are prepared to go all the way to EU courts if necessary.

I would assume they'd just decline and shut operations for that particular domain and create a new domain/account on cloudflare for the new site?

Not sure how attached these sites are to their specific brand/domain (or if this is indirect where main sites link to other sites that host the video)