Market update: Cura ç ao
HOW LARGE IS THE IGAMING SECTOR IN CURAÇAO? One of the current challenges with the limited scope of oversight from the Curaçao government is that there is little data on the size of the iGaming sector in Curaçao. No concrete numbers are being reported and Minister Silvania, points out that: “one should be cautious when trying to estimate the sector’s size”. In the same interview, he mentions: “We are hoping to increase the economic importance of the online gaming sector in Curaçao by introducing legislation and proper supervision.” TARGETING OF MARKETS FOR CURAÇAO OPERATORS It is believed that no changes will be made from this perspective and no new rules will be imposed on operators on the targeting of certain markets; however, the responsibility will be placed on the operator to make informed decisions, similar to other EU- based dot.com licensing jurisdictions. As is currently the case, no countries which are part of the Kingdom of the Netherlands can be targeted and games of chance cannot be offered to their residents. The Curaçao license can therefore be considered an outward license. Furthermore, operators may choose to take further measures to restrict certain target markets. REINFORCING AML / CFT CHECKS Next to the new gaming legislation, the legislation regarding AML conditions will also be adapted in line with the new gaming legislation. This is to ensure that operators will align their requirements and processes about the identification and verification of players upon registration. It is expected that new deposit thresholds from when KYC verification is triggered will be incorporated, which will be in line with other countries’ regulations on the matter. This will also include reporting requirements and player protection
obligations. The new legislation will not be a standalone legislation. To implement the measures successfully, other legislation, such as the AML legislation, but also perhaps legislation regarding work permits for foreigners will need to be amended. Furthermore, the CGA will need to draft and implement further guidelines on the different measures in the new legislation to give guidance to the sector on this. During information sessions with the sector, it has been mentioned that certain elements will be important for the operators to have, such as an operational handbook, containing information such as a description of all the games offered on the URLs of the operator. WHEN WILL THE NEW LEGISLATION BE IMPLEMENTED? No exact date for this change of legislation has yet been put forward. Recent news reports have first quoted a date of release to be around March 2023; however, Minister Silvania, has announced there may be delays due to “several factors of which we [Curaçao’s government] have no influence”. At this point, the final bill has not yet been released but is said to be already drafted for online games of chance, and various stakeholders, amongst others corporate service providers in this sector, have been asked to provide their comments, thoughts, and input on th§e draft. Currently, these comments have been gathered and are being reviewed as part of the legislative process. THE GAMING INDUSTRY STAKEHOLDERS’ THOUGHTS The Curaçao gaming industry stakeholders are all very much looking forward to the implementation of the new licensing regime. Although not all details are known yet, the anticipated resulting level playing field will not only safeguard players but will also make Curaçao a gaming jurisdiction with a solid backbone for the future.
Stefan Sluijter is Co-Head EM Group Global. +356 2778 2610 stefan.sluijter@the-emgroup.com
IMGL Magazine • November 2022 • 53
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