Market update: Cura ç ao
economically beneficial for the country. As licensing fees are currently paid to the master license holders, the centralization of control by the government will create new revenue for the island. Another factor is the COVID-19 pandemic which played an albeit indirect role. During COVID, Curaçao’s tourism decreased drastically leading the Dutch Caribbean Island to receive financial assistance from the Netherlands. In exchange, the Dutch government asked Curaçao to revise its online gaming laws to be closer to those of other supervised and regulated regimes. WHAT WILL THIS MEAN FOR EXISTING LICENSED CURAÇAO ENTITIES? As each master license holder has different conditions regarding their license, the new gaming license will ensure a more level playing field for all. The CGA can attach conditions, regulations and restrictions to a gaming license, in case these can reasonably contribute to the provision of safe, responsible, transparent and reliable games of chance. These can be on the level of the operator, such as prior approval towards changes in the legal structure or ownership but can also pertain to player protection related measures. Examples
are the maximum bet size per person, as well as the manner of advertising. Furthermore, it gives the participants of these games of chance a better framework regarding the submitting and handling of complaints. By comparison to the current situation, there will be additional controls on operators whereby a focus on responsible gaming and AML measures will be implemented. Technical compliance will also be an important element when it comes to the new measures. Furthermore, discussions are ongoing over which conditions need to be met when it comes to having an effective establishment in Curaçao. It is not clear yet if this indeed pertains to a minimum of three “key positions” employees, who will need to be hired locally, or if this will be implemented more gradually. Current operators under the sub-license regime will be given a specific term to provide their application to convert their license and adjust their operations to the new regulations. During that period, before the new license is granted, the new legislation will not immediately apply to operators with an existing license, if they have registered with the CGA before the new legislation came into force. The new license will be valid for a maximum five-year period after which it will need to be renewed. Despite the above, software providers in this sector can also request a license, as currently is already best practice with the master license holders. Naturally, part of the conditions and measures in the new legislation will not apply to these software providers. In addition, yearly license fees will likely increase slightly, although remaining competitive compared to the costs of other jurisdictions. The fee will consist of a regulatory fee and a gaming contribution fee, with the regulatory fee variable, based on the number of domains amongst other things. The fees are however not yet confirmed and are still under review. The final figures will be communicated once the law is in force. There will likely be some operators which may not be willing to adhere to these new regulations which can be considered an improvement in safeguarding players amongst many other developments. On the other hand, committed Curaçao licensed operators will decide to remain and make the necessary investments. The latter group will ultimately benefit from a more reputable license that will give them access to a wider array of online payment methods and third- party service providers. WHAT ABOUT CRYPTO GAMBLING? The new legislation currently does not include any mention of crypto gambling; and Curaçao’s Minister of Finance, Javier Fransisco Antonio Silvania confirmed that: “offering these services will not be possible with a Curaçao license for the time being”.
52 • IMGL Magazine • November 2022
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