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The Gaming Control Board has taken note of a recent complaint regarding the National Ordinance on Games of Chance Reform Process (LOK), and the integrity of Curacao’s licensing regime.
Authorization to issue licenses
The National Ordinance on Hazard Games, or NOOGH, authorizes the Governor to issue licenses for the operation of hazard games on international markets via service providers. The Minister of Finance was given this authority in December 2019. He then gave it to the GCB, in March 2020. A further amendment will be made in November 2023. The GCB is therefore authorized to grant, amend temporarily, revoke or deny licenses as well as add conditions. It is incorrect to claim that the GCB does not have the legal authority necessary to grant a license.
Licenses issued on the basis the NOOGH do not have a provisional nature. Any applicant who has their application approved will receive a license.
NOOGH holders will be automatically granted a temporary license when the new regulatory framework is implemented and in force. As a transition, they have up to a year to fully comply with the LOK requirements.
Comprehensive Licensing Process
Under the current regime, GCB established a multiphase process for assessing licenses.
The license applications are subject to a thorough review, including a due diligence check on the decision makers, sanction screening, the business plan, and an initial evaluation of websites.
Communication with each applicant is facilitated through the GCB’s online portal, resulting in complete transparency. Checklists are also available to all applicants.
The GCB executive team will decide whether or not to issue a license based on the report. This process can be followed by the applicant via the portal. Both the application and monitoring process are mostly manual, but supported by technology. GCB uses AI very little or not at all, but it will be remiss to ignore new technologies in the future. The GCB manages this licensing process with the help of its team.
Payment of Fees
After licenses have been approved, GCB issues invoices and operators pay directly to an official government account. Mismanagement is not possible. It is therefore incorrect to assert that funds were embezzled. The GCB will grant the license once the payment is received.
Foreign Infringements
Operators must ensure that they comply with all legal requirements in the jurisdictions where they operate. Violations will be dealt with by the competent authorities abroad. The GCB has no jurisdiction to supervise or intervene on alleged violations of foreign regulations. In this context the GCB relies upon formal decisions made by foreign authorities. The GCB’s enforcement actions depend on factors like the severity of a violation.
Player Complaints
The online operators are responsible for handling player complaints, based upon their terms and condition, which is reviewed by the GCB. Alternative Dispute Resolution will be mandatory under the LOK to ensure independent evaluations. The GCB will use the complaints received from players, and any future reports from ADR agencies as inputs to its risk-based supervisory process.
Experienced team
To effectively implement the new policy, GCB collaborates globally with experts, including reputable consulting firms with extensive experience of regulated gaming jurisdictions. All of these engagements comply with GCB internal policies.
Bankruptcy Declaration: BC.Game
Due to confidentiality obligations the GCB cannot comment on details in this case. This case involves a dispute involving the website (BC.Game), and some players. Small House/Blockdance did not pay the players because of the dispute. The court declared bankruptcy. This bankruptcy, however, is administrative and not due to insolvency (based on the civil law statute of Curacao). Un trustee was appointed to manage the estate and to ensure that payments are made to players. The GCB consults with the regulated entities involved to determine regulatory measures.
