Curacao reforms the gambling sector
Date: 2023-07-13 Categories: CASINO, EVENTS
This new law will be the catalyst for significant reforms in the island's gambling sector. According to the Caribbean nation's finance ministry, a massive expansion is being put in place to ensure the continuity of this transition.
Curaçao currently operates under a master-and-sub-license scheme that has been heavily criticized for offering little to no government oversight and control.
Curacao's current rules and lack of oversight
Legislation prior to this reshuffle stated that operators must apply for a sub-license from one of the four current master license holders in order to receive full approval. This has allowed the industry to significantly regulate itself.
This system has made Curaçao infamous for providing one of the most permissive licensing jurisdictions in the world, resulting in many Dutch-based operators being placed on numerous European and even Australian blacklists.
In fact, many Curaçao-based operators have been criticized for having little or no intention of complying with the jurisdictions they offer for their overseas operations.
What is being redone?
Curaçao Ministry of Finance Legal Counsel Cixjen Jansen announced that as of September 1, the Curacao Gambling Control Board can now issue licenses directly, eliminating the possibility of issuing a sublicense.
Intention of succession
The current holders of general licenses will continue to be allowed to issue sub-licenses for a period of one year after the new legislation comes into force.
Master license holders with terms exceeding the allotted 12 months in their licenses will be canceled at the same time as all other operators.
Sub-licensees who do not re-apply under the new regime will be allowed to continue until the expiration of the general licensee that granted the sub-license agreement.
Transparency and Compliance
Under the new rules, licensees must provide audited policies and procedures within 6 months of receiving a new license.
In addition, Minister Javier Silvania said that the new regulator, the Curacao Gaming Authority, would be open to issuing new licenses, monitoring operations and enforcing regulatory requirements.
He promised that the Curaçao sector would offer greater due diligence and more transparency on funds flowing into the island.
Dutch influence on Curaçao
In 2020, the Kingdom of the Netherlands, of which Curaçao is a part, demanded that the island nation change its more than lenient gambling rules.
This request was not to be taken lightly, as non-compliance could result in the withdrawal of financial assistance to support the collapse of tourism caused by the Covid-19 pandemic.
While this is not the only cause of Curaçao's regulatory upheaval, it was probably the most powerful factor.
Curaçao currently operates under a master-and-sub-license scheme that has been heavily criticized for offering little to no government oversight and control.
Curacao's current rules and lack of oversight
Legislation prior to this reshuffle stated that operators must apply for a sub-license from one of the four current master license holders in order to receive full approval. This has allowed the industry to significantly regulate itself.
This system has made Curaçao infamous for providing one of the most permissive licensing jurisdictions in the world, resulting in many Dutch-based operators being placed on numerous European and even Australian blacklists.
In fact, many Curaçao-based operators have been criticized for having little or no intention of complying with the jurisdictions they offer for their overseas operations.
What is being redone?
Curaçao Ministry of Finance Legal Counsel Cixjen Jansen announced that as of September 1, the Curacao Gambling Control Board can now issue licenses directly, eliminating the possibility of issuing a sublicense.
Intention of succession
The current holders of general licenses will continue to be allowed to issue sub-licenses for a period of one year after the new legislation comes into force.
Master license holders with terms exceeding the allotted 12 months in their licenses will be canceled at the same time as all other operators.
Sub-licensees who do not re-apply under the new regime will be allowed to continue until the expiration of the general licensee that granted the sub-license agreement.
Transparency and Compliance
Under the new rules, licensees must provide audited policies and procedures within 6 months of receiving a new license.
In addition, Minister Javier Silvania said that the new regulator, the Curacao Gaming Authority, would be open to issuing new licenses, monitoring operations and enforcing regulatory requirements.
He promised that the Curaçao sector would offer greater due diligence and more transparency on funds flowing into the island.
Dutch influence on Curaçao
In 2020, the Kingdom of the Netherlands, of which Curaçao is a part, demanded that the island nation change its more than lenient gambling rules.
This request was not to be taken lightly, as non-compliance could result in the withdrawal of financial assistance to support the collapse of tourism caused by the Covid-19 pandemic.
While this is not the only cause of Curaçao's regulatory upheaval, it was probably the most powerful factor.
