Changes in Curacao Regulation
Date: 2024-09-19 Author: Alex Crawford Categories: EVENTS
Previously, this process was accessible even to new operators. However, recent changes to the licensing system have led to stricter controls. Now, operators are required to undergo a more stringent monitoring process under the Curacao Gaming Control Commission, which is increasingly focusing on safety and responsibility in the industry.
Legal challenges for Curacao licensed operators in Europe
Operators operating under a Curacao license have faced legal problems in a number of European countries. Some companies have been forced to refund players their losses. For example, Dama N.V. was ordered to pay €816,852 by courts in Austria and the UAE. Similar decisions have also been made in Germany, where players have also been refunded their losses.
These types of rulings set a precedent that could lead to the emergence of “risk-free betting” for players, who can place bets knowing that if they lose, they have the right to sue for a refund. In some countries, such as Austria, gambling on foreign platforms is illegal, making such bets void for operators and players. In one case in Austria, a player was ordered to return their winnings to the operator to prevent further such claims.
Curacao Court Decision
In the case of Dama N.V., the Curacao court initially upheld the decision of the European courts, declaring the company bankrupt due to unfulfilled obligations to players. However, the company later proved its financial solvency and was able to overturn the decision.
Interestingly, Malta took a different stance, issuing Bill 55, which protects Maltese operators from interference by foreign courts. If a European player files a lawsuit against a Maltese-licensed operator, Maltese courts will uphold their license if they comply with local laws, blocking foreign courts.
The European Court must now decide whether players have the right to seek refunds from offshore operators such as those licensed in Curacao.
Alternative Licenses: Kahnawake, Anjouan and Tobique
With Curacao’s licensing challenges, more operators are starting to look to alternative jurisdictions: Kahnawake, Anjouan and Tobique.
Kahnawake: This Canadian jurisdiction is one of the oldest, issuing gambling licenses since 1996. Its strict regulatory framework and protection from opportunistic lawsuits make it attractive to operators seeking stability and minimizing legal risks.
Anjouan: This region of the Union of Comoros offers online gambling operators favorable conditions, including no requirement for a physical presence in the country. This reduces the risk of adverse court decisions and makes Anjouan an attractive alternative for those looking to avoid legal complications.
Tobique: Like Kahnawake, this Canadian jurisdiction has flexible licensing conditions and a stable legal framework. The lack of a physical presence requirement and strong protection from lawsuits make Tobique a good option for operators seeking stable legal support.
