New Licensing in Curaçao for Modern and Robust Regulation
Curaçao’s efforts to align with international regulatory standards and rebuild its standing in the global gaming industry have taken a positive step.
Curaçao has made changes to its laws to address its gambling problem. © Getty Images
Key Facts:
- Curaçao has announced sweeping changes aimed at modernising its gambling licensing framework.
- Reforms are hoped to enhance Curaçao’s reputation as a regulated gambling hub.
- Curaçao had garnered a reputation as a haven for grey market and unscrupulous operators.
- Enhanced transparency, stronger licensing enforcement, and a rigorous focus on compliance are promised.
Curaçao, a small constituent island country within the Kingdom of the Netherlands in the Southern Caribbean Sea, has announced sweeping changes to modernise its gambling framework.
Several hundred companies from around the globe have and do operate under Curaçao gambling licenses due to their simple application process, lenient laws, and reduced tax rates.
Considered to be “a major milestone in the island’s efforts to reform its gambling sector,” Curaçao’s parliament approved a Landsverordening op de Kansspelen (translated: National Ordinance on Games of Chance) Bill by a vote of 13-to-6 on December 17. Lucille George-Wout, Curaçao Governor, is expected to sign LOK into law before New Year’s Day.
The Grey Days Over Curaçao
Under the previous system, Curaçao had four master gambling license holders that provided sub-licenses to hundreds of offshore operators. With minimal regulatory oversight and enforcement, Curaçao garnered a reputation as a haven for grey market and unscrupulous operators.
Furthermore, in November, Luigi Fanyete, a politician and member of Curaçao’s current opposition party, filed a 400-page report with the country’s Attorney General’s Office highlighting suspicions of official misconduct, corruption, fraud, embezzlement and money laundering related to the issuing of online gambling licenses.
Thrilled for Transparency and Stronger Licensing Enforcement
Described as “a great day for our industry” by Aideen Shortt, PR and Marketing Consultant for the Curaçao Gaming Control Board (GCB) on Linkedin, the new law will replace the much-maligned two-tiered licensing system. Curaçao’s new gambling overhaul process was first announced in July 2022.
In a press release, the GCB said it was “thrilled to move into the next stage of its jurisdictional transformation, which will include the transition from the Gaming Control Board to a new entity called the Curacao Gaming Authority (CGA) and further improvement of its supervisory framework.”
It added: “This new legislative framework provides the foundation for a regulatory environment that is both modern and robust. The implementation of the LOK will bring enhanced transparency, stronger licensing enforcement, and a rigorous focus on compliance with applicable standards for anti-money laundering along with responsible gaming.”
Reportedly, existing licensees will be transitioned to the new framework through a grandfathering process to ensure business continuity while aligning licensees with updated regulations. Meanwhile, new applicants will be required to establish a physical presence in Curaçao and undergo due diligence checks.
