Changes in Curacao: Navigating the New Regime

Curacao is one of the world’s most well-known iGaming licensing environments that attracted operators worldwide for decades. The island's reputation as a hub for online gambling was built on its master-sub licensing model, offering a straightforward and cost-effective route for operators to enter the market. However, the gaming landscape in Curacao is undergoing a significant transformation as the country transitions to a new regulatory framework aimed at increasing oversight and aligning with international standards. This article delves into the ongoing changes, the challenges operators and regulators face, and what the future holds for Curacao's iGaming sector holds.

The End of the Master License Era

For years, Curacao's iGaming industry was regulated through a master license system. Under this model, a few master license holders were authorised to issue sub-licenses to online gambling operators, allowing them to operate under the Curacao jurisdiction. This approach provided autonomy and flexibility that was attractive to operators, particularly those looking to minimise regulatory costs and compliance burdens.

However, the simplicity of this system also led to criticism. The lack of stringent oversight and the relatively low barriers to entry made Curacao a haven for operators less concerned with rigorous compliance. As global scrutiny of online gambling increased, so did the pressure on Curacao to reform its regulatory approach.

In response, the Curacao government announced the phasing out of the master license system, with the last of the current master licenses set to expire by January 31, 2025. This marks a significant shift in how the island's iGaming industry will be regulated, with all operators now required to apply directly to the Gaming Control Board (GCB) under the new National Ordinance for Games of Chance (LOK).

The New Regulatory Framework: National Ordinance for Games of Chance (LOK)

Established in September 2023, the LOK is a comprehensive overhaul of Curacao's iGaming regulatory environment, aiming to bring all operators under a central, government-monitored system, focusing on enhancing compliance with international standards for anti-money laundering (AML), and know-your-customer (KYC) protocols.

Under LOK, the licensing process has become more structured and rigorous. Applicants are now required to submit three key forms: the online gaming application form, the personal history disclosure form, and the corporate and business information form.

However, the transition to this new framework has not been without challenges.

The GCB has been inundated with applications, receiving 740 license requests during the first half of the year alone. With an additional 300 applications expected in the coming months, the regulator is struggling to keep up with the demand.

Challenges in the Transition: Delays and Confusion

The sheer volume of applications has significantly strained the GCB's resources. According to GCB officials, the current capacity allows them to process only about 10 applications per week, but efforts are underway to ramp up this capacity to 20 or 30 applications per week.

Adding to the challenges is the confusion surrounding the expiration of master licenses and the shift to the new system. Many operators are uncertain about the implications of the latest regulations and the steps they need to take to remain compliant.

The Impact of New Regulations on Curacao's Reputation

One of the primary goals of the new regulatory framework is to improve Curacao's reputation as a licensing jurisdiction. In the past, the island was often criticised for being a haven for operators targeting grey markets. The introduction of stricter regulations and enhanced enforcement measures is intended to address these concerns and position Curacao as a more reputable and trustworthy jurisdiction.

Under the new framework, the GCB has been empowered with greater enforcement capabilities. Operators who fail to comply with the new regulations face the risk of having their licenses revoked. The GCB has also established strong relationships with foreign regulators, allowing for better coordination in addressing cross-border regulatory issues.

The Road Ahead: Can Curacao Regain Its Leadership Position?

The move to a more stringent regulatory environment brings Curacao more in line with jurisdictions like Malta and the Isle of Man. However, this also means that Curacao will face increased competition from these well-established jurisdictions.

One of the key challenges will be maintaining its appeal to operators who were drawn to Curacao for its low-cost, low-barrier licensing model. The new regulatory requirements and associated costs may deter some operators, particularly smaller ones, from seeking licenses in Curacao. This could lead to a reduction in the number of licensees, particularly those who are unable or unwilling to meet the new standards.

On the other hand, the improvements in regulatory oversight and enforcement could enhance Curacao's reputation, making it a more attractive option for operators who prioritize compliance and long-term sustainability. The success of the new framework will ultimately depend on the GCB's ability to manage the influx of applications, enforce the new regulations effectively, and provide clear guidance to operators during this transition period.

How to Apply for a Curacao Gaming License Under the New Regime: A Step-by-Step Guide

Applying for a Curacao gaming license under the new regulatory regime involves a more structured and rigorous process than before.

1. Prepare Required Documentation

• Online Gaming Application Form: Complete this form with all the necessary information about your gaming operation.
• Personal History Disclosure Form: Each individual involved in the company must fill out this form, providing personal and professional background details.
• Corporate and Business Information Form: Submit detailed information about your company’s structure, financial status, and business operations.

2. Submit the Application

• Compile all the required forms and supporting documents.
• Submit the application through the official online portal provided by the Curacao Gaming Control Board (GCB).
• Ensure all documents are complete and accurate to avoid delays, as incomplete applications are often returned for clarification.

3. Undergo Initial Review

• The GCB will review your application to ensure all required documents are provided and that they meet the necessary standards.
• You may be asked to provide additional information or clarification during this stage.

4. Compliance Checks

• The GCB will conduct thorough KYC (Know Your Customer) and AML (Anti-Money Laundering) checks on all individuals and entities involved in the application.
• This process ensures that all applicants meet the regulatory requirements for operating in Curacao.

5. Approval Process

• Once your application passes the initial review and compliance checks, it will be considered for approval.
• The GCB aims to process applications within an eight-week timeframe, but delays may occur due to the high volume of submissions.

6. Receive the License

• If approved, you will receive your Curacao gaming license, which will allow you to legally operate your iGaming business under the new regulatory framework.
• You will be required to adhere to ongoing compliance and reporting obligations as stipulated by the GCB.

Key Requirements for Obtaining a License

• Legal Entity: Your business must be registered as a legal entity in Curacao.
• Physical Presence: Establish a local presence in Curacao, such as a registered office.
• Compliance with AML/KYC: You must implement robust AML and KYC procedures in your operations.
• Financial Stability: Demonstrate sufficient financial resources to sustain your business.
• Good Standing: All individuals associated with the company must have clean backgrounds and no criminal records.

Conclusion: Navigating the New Curacao Licensing Landscape

While the transition to the new regulatory framework presents challenges, it also offers opportunities for operators who are committed to compliance and responsible gaming.

For those looking to navigate this complex environment, partnering with experienced professionals is essential. Fast Offshore has been at the forefront of the iGaming industry for over 27 years, providing expert guidance on licensing in Curacao and other leading jurisdictions. Whether you are an established operator or a new entrant to the market, we can help you understand the new regulations, navigate the licensing process, and ensure compliance with the latest standards.

Contact Fast Offshore today to learn more about how we can assist you in securing a Curacao gaming license or exploring other licensing options in jurisdictions such as Anjouan, Kahnawake, the Isle of Man, or Malta.