One of the most important recent changes in the iGaming business world occurred on the Caribbean island of Curaçao. This country has long been home to many gambling companies thanks to the forward-thinking approach taken by the Curaçao Gaming Control Board (GCB), so what does the approval of the new National Ordinance on Games of Chance (LOK) mean for regulations in this industry?
The Story So Far
The nation’s parliament voted in December on the subject of whether to replace the current master licensing system with a fresh, improved regulatory framework that fits the modern environment better. The LOK (Landsverordening op de kansspelen) approach was proposed as a way of providing a more modern and transparent approach, with the new Curaçao Gaming Authority (CGA) being established to replace the GCB.
This proposal was overwhelmingly approved in parliament, with 13 votes passed in favour of it and just six against. The new rules will allow the CGA to act as the regulatory body overseeing B2C and B2B businesses. Finance Minister Javier Silvania was one of the politicians publicly supporting this law, despite some critics suggesting that it could lead to an increase in money laundering activities. Silvania has claimed that the new laws could lead to ANG40 million ($22.2 million) being generated in annual licensing fees.
The relatively easy availability of the Curacao gaming licence has ensured that it’s long been seen as a cost-effective regulatory option for any online gambling business looking to operate legally across the globe. In the past, four master licence holders were able to give sub-licences to other operators, but each licence holder had different requirements in areas such as their Know Your Customer and anti-money laundering controls.
What Changes Can We Expect to See?
There are some key areas where the new legislation is expected to improve the regulatory control offered by Curaçao iGaming licences. These include a crackdown on unregulated gambling and a stronger focus on responsible gaming. Greater financial requirements are also being put in place as the regulator looks to prevent money laundering and fraud from taking place.
This new approach will be based on key areas like enhanced reporting requirements that will see licence holders having to submit more compliance reports to the CGA. It’s also going to be necessary for each licensee to have at least one vital staff member in the country in the next three years, with three local employees having to be in place in the next five years.
All existing Curaçao licence and sub-licence holders have a six-month transition period in which they can make the move across to the new model. An additional extension for six months may be allowed if an operator advises the regulatory authority that they need more time to meet the new requirements.
These changes should make it easier for the Curaçao authorities to keep a tighter level of control over the local gambling market without creating any major issues for the iGaming firms who currently hold a licence with them and are happy to cross over to the new model.
