Under the new LOK gambling policy in Curaçao licensed operators are required to provide alternative dispute resolution (ADR) services to players, to help prevent player disputes from escalating to court.
Requirements under the ADR policy have been laid out in a consultation document released on 24 February by the CGA (previously known as the GCB/Gaming Control Board).
ADR providers will be separate entities from the B2C licensed operators and their role is to provide independent and impartial advice while handling player complaints that can’t be easily solved by customer services.
ADR providers, approved by the CGA, will be required to determine whether a case filed by a player requires mediation or adjudication and will go between the relevant parties to access all relevant information relating to a case.
However, ADR entities will not have powers to investigate a dispute beyond the evidence provided by those involved. When uncovering sensitive information, the CGA has said that ADR divisions are responsible for sharing relevant details with the regulator.
This, it said, could indicate where industry-wide problems are occurring.
ADR expertise requirements
It will be a requirement for ADR divisions to operate standalone websites for players to access outside of the operator’s products. The entity must be based on Curaçao.
In terms of staff requirements, each team will need a qualified lawyer and at least three members of staff, all with experience in the gambling industry.
Applications for ADR approvals are being accepted by the CGA now and are expected to take six weeks.
High-profile player cases prompt ADR policy formation
Forming an ADR policy was first hinted at in November when Curaçao-licensed operator BC Game was embroiled in a high-profile player dispute case that resulted in it being declared bankrupt by a local court.
BC Game was licensed under the regulator’s previous master licence framework and was taken to court by a cohort of players that claimed to be owed large sums of winnings.
Both BC Game’s founding company and the business it was subsequently sold to were declared bankrupt so players could claim compensation through the process.
The case brought about allegations of corruption, fraud and money laundering within the CGA’s new licensing framework from opposition politician Luigi Faneyte.
The CGA refuted the claims and said it would establish an independent ADR policy to resolve legal disputes outside of court within its LOK framework. This would include mediation, arbitration and negotiation measures.
Parliament approved the LOK framework in December which will usher in a new era for gambling regulations on the island.
One of the objectives of the LOK is to improve Curaçao’s reputation as a haven for grey market operators. Minister of finance Javier Silvania previously described the reforms as a “safety net” against unlicensed gambling operators.
The new system provides multiple application types for B2B, B2C and B2B2C operators.
Original article: https://igamingbusiness.com/legal-compliance/legal/uracao-alternative-dispute-resolution-roll-out-consultation/
