All holders of the Curaçao master licence will be granted a 1-year extension subsequent to the passage of the impending gambling reform legislation.
This new law will catalyse significant reform across the island’s gaming sector. According to the Caribbean nation’s Ministry of Finance, the mass extension is being enacted to ensure continuity through this transition.
Curaçao currently functions on a scheme of master and sub licences which has received heavy criticism for offering little to no government oversights and controls.
Curaçao’s current regulations and lack of oversight
The legislation prior to this shake-up stated that operators must apply for a sub-licence from one of the four current master licence holders in order to gain full approval. This allowed the industry to regulate itself essentially.
This system has made Curaçao infamous for providing one of the most permissive licensing jurisdictions in the world, landing many operators based in the Dutch constituent nation on numerous European and even Australian blacklists.
In fact, many Curaçao-based operators have come under fire for acting with little to no intention to meet the requirements of the jurisdictions they offer their foreign-facing operations.
What is being altered?
A legal advisor to Curaçao’s Ministry of Finance, Sixienne Jansen, has announced that from September 1, the Curaçao Gaming Control Board can issue now directly issue licences, removing the possibility of the issuance of a sublicence.
The intention of continuity
The current master licence holders will still be allowed to issue sub-licences for a period of one year after the new legislation comes into effect.
Master licence holders with periods longer than the allotted 12 months on their licences will have them revoked at the same time as all other operators.
Sublicensees that do not re-apply under the new regime will be allowed to continue operations until the master licensee that granted the sublicence’s agreement expires.
Transparency and compliance
Under the new regulations, licensees must supply audited policies and procedures within 6 months of acquiring a new licence.
Additionally, Minister Javier Silvania has stated that a new regulator in the form of the Curaçao Gaming Authority will be inaugurated to issue new licences, monitor operations and execute regulatory enforcement.
He promised that Curaçao’s sector would offer more regulatory due diligence and improved transparency regarding the funds entering the island.
Dutch influence on Curaçao
In 2020, the Kingdom of The Netherlands, of which Curaçao is a constituent nation, requested that the island nation reform its more than lenient gambling regulations.
This was not a request to be taken lightly as failure to comply would result in a withholding of financial aid to support the tourism crash caused by the Covid-19 pandemic.
While not the only reason for Curaçao’s regulatory upheaval, this was probably the most potent factor.
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