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In 2020, the Dutch Government introduced a series of reformative mandates for Curacao, a major one being a significant overhaul of the island’s online gambling regulations. These regulations, presently overseen by the master license holders, are recognised worldwide for the ease of obtaining a license within a quick timeframe. They are distinguished by a low fee structure, limited requirements, and an absence of extensive oversight. Nonetheless, the proposed modifications by the Curacao government are poised to remodel this landscape profoundly.
Proposed Changes
The impending reforms propose the establishment of a new Curacao regulator which has been welcomed by many. This body will bear the responsibility of supervising all gaming operations and licensing. Additionally, it is thought that the new body will introduce both B2C and B2B licenses for operators. Further proposed changes include the mandatory hiring of local personnel for critical roles based on the island and the introduction of strengthened anti-money laundering monitoring and control measures.
Latest Developments
On the 22nd of June 2023, while addressing an audience in Malta, Javier Silvania, the Minister of Finance for Malta, announced the formation of a fresh regulatory body called the “Curacao Gaming Authority” (CGA). It is anticipated that the CGA will start granting new licenses from the 1st of September 2023. The establishment of this authority has taken more time than originally projected by the Curacao officials. However, the comprehensive regulatory framework, dubbed “The National Ordinance on Games of Chance (LOK)”, is now completely prepared. At the beginning of June, it was put forward to the Council of Advice, marking the last step before it heads to the Parliament for approval.
It is our understanding that there will be an obligation for the new license holders to enhance their physical presence in Curacao. This modification, which has been the subject of intense speculation for the past six months, is not likely to shock many. The on-ground presence would necessitate the hiring of at least one local individual, which would eventually increase to a minimum of three people within a span of five years. Beyond local staffing, it’s expected that operators will need to secure office space either through purchasing or leasing. This space must be solely used for the execution of the business operations associated with their gaming license.
Political Pressures
The latest development comes in the wake of a Q&A article published by the Curacao Chronicle. In early June the piece featured a conversation between VVD members Roelien Kamminga and Ruben Brekelmans, who asked the Dutch Minister of Foreign Affairs, Wopke Hoekstra, several questions. One of their inquiries was, “What actions have been implemented in recent years to augment the oversight of gambling companies in Curacao?”
In response, Hoekstra explained, “The Curacao government is actively pursuing these measures through the formulation of new gambling legislation, which includes the cessation of the master-sub-license system. The forthcoming law envisions a new gambling regulator, empowered with greater authority than the existing one. The regulator is also expected to supervise the offshore gambling sector within the country.”
He added, “The goal is to have these reforms fully implemented by the end of 2023.”
On the 22nd of June 2023, the Minister of Finance in Curacao confirmed that the country aims for the new regulatory framework to “reverse” the country’s current reputation. His intention is to achieve this by demanding “enhanced due diligence” and introducing greater transparency regarding the origins of the operators’ funds.
Currently Licensed in Curacao?
For existing online gambling license holders in Curacao and those contemplating Curacao for their licensing needs, the implications of these changes may provide uncertainty. Given the transformative nature of these changes, some operators may find it advantageous to find a new jurisdiction for their operations.
Director of Global Gaming Solutions, Mark O’Neill, adds “One jurisdiction that is continuously viewed as a progressive move from Curacao is the Isle of Man. Known as a premier jurisdiction and a famous centre for online gambling, it is the operational base of choice for numerous significant gambling operators. The Isle of Man license is reputable and helps operators surmount challenges related to banking, payment services providers, and software suppliers. The licensing framework there offers a comprehensive umbrella license that can be secured within a 12-week period from application submission to hearing.”
To find out more, please visit the Global Gaming Solutions website via www.globalgaming.solutions or should you wish to speak to the team directly, please contact [email protected].
