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It is difficult to obtain an online gambling license. There are many protocols and requirements that must be met before the license can even be granted. Curacao is the jurisdiction and regulator that is most easily accessible in the online gambling industry. Curacao is the licensing regulator of choice for many online casinos due to its low entry barriers. These include low license fees, moderate monitoring and low monitors. Curacao was facing financial difficulties during the Covid-19 pandemic. The Dutch government provided aid to the regulator. Curacao received encouragement from the Dutch government to revamp their gambling licensing requirements. A reform was then drafted. We will give you an overview of Curacao’s current gambling regulations as well as the reform proposed.
Curacao’s Current System
The current gambling laws in Curacao are outdated compared to the industry standards. Currently, there are more than 400 Curacao iGaming licensed online casinos. These casinos pay a low licensing cost and they’re not regularly monitored. Currently, four companies have a’master licence’, which means that they can award iGaming licensing to betting operators for the government. It is clear that when you look at all the factors in the current system the liberal nature of this regime raises many red flags. In response to the call for change, the Curacao government and Curacao’s Gaming Control Board followed the Dutch government’s advice and created a new gambling control board as well as updated legislation.
Proposed Reforms
The Curacao government has proposed reforms to the regulation of online gambling. These include money laundering and employment requirements for licensees. Below are the changes proposed by the Curacao Government:
- Create a new gambling regulator to supervise licensing and gaming operations ( Curacao Gambling Authority).
- Operators can now apply for B2C and B2B licenses.
- New licensing fees for operators: Starting at EUR400 for each application, EUR12000 once approved and EUR250 per month for URL
- Minimum of three employees of the prospective operator must be employed in key positions within the company, and the company must be located on Curacao.
- Anti-money laundering and enhanced monitoring of operators
Dutch Government Updates & Quarterly Progress Reports
Quarterly updates on the reforms, timelines for updating the legislative framework and progress were required as per the terms and conditions of the proposed agreement. In the 2022 Quarter 4 Update, it was stated that the new legislation would be explained and detailed to parliament in February of 2023.
Stakeholder input and adjusted schedule
The deadline of February 2023 is a provisional date as it could be delayed due to the ongoing engagement with stakeholders. The 2023 Quarter 1 Update was published earlier this year. It was revealed that the proposed deadline of February 2023 was now extended until later in the year. The government did not give any details as to why this deadline was extended. However, it mentioned the Temporary Working Organization. The Dutch Temporary Work Organization (which deals with reforms of the bill) stated that it was still waiting for an updated schedule from the Curacao Ministry of Finance.
Consultations Officials and Progress
The latest information about the new bill is still unclear, as are the current consultations among the stakeholders. Only the 2022 back end contained information that said that all parties are currently in consultation and that a final decision will be made soon. According to the document, “According to an agreement between Curacao’s minister of finance and the Netherlands’ minister of legal protection, official consultations about the [gaming legislation ].”] will take place in early January.”
Potential Implications & Future Outlook
The ongoing consultations on the new gaming law will have a significant impact on all Curacao stakeholders, including current license holders. If they wish to continue to work with Curacao and remain in the gaming industry, current license holders must reapply within 18 months of the new law being passed.
The future of online gambling will change in Curacao when a new gaming law is passed. It will also be more in line with other regulators. The new bill is expected to provide more security for players and give the Curacao Gaming Authority a better way to monitor betting operators. Money laundering and fraudulent activities will be managed and controlled. The iGaming sector is eagerly awaiting the arrival of the new and improved Curacao gaming regulatory body.
Compare with New Zealand Gambling Regulations
New Zealanders should be aware of developments in Curacao as the majority of online casinos that are available to New Zealanders have been licensed by Curacao’s regulator. New Zealand’s gambling laws prohibit local companies to operate online casinos in the country. New Zealanders can open casino accounts or play games at offshore casinos. The gambling landscapes of New Zealand and Curacao share some similarities. One important similarity is the focus on player safety, and the control of the possibility that betting operators will engage in fraudulent activities. There is a notable difference in the legality for local companies to open online casinos. This is legal in Curacao, but not in New Zealand.
The ongoing gambling reform in Curacao is a welcome development. Online casinos have been trying to get around strict regulators for too long. Instead, they try to obtain an iGaming licence from the appropriately regulated Curacao regulatory body. The new legislation and the proposed gambling bill will alter the way players in New Zealand can play online casinos. The new laws will improve the monitoring of operators, and stop fraudulent activity. New Zealand’s gambling laws also have implications for the new gaming bill. New Zealanders will likely play at online casinos licensed by Curacao due to the ban on locally owned online casino. With the updated Curacao Gambling Bill, New Zealanders will be protected while playing at online casinos.
