In his latest analysis, iGaming industry consultant Ron Mendelson, Fast Offshore, explores the process and new rules for obtaining a Curacao gaming license.
The Curacao gaming license has been a popular option for operators within the online gambling industry for many years thanks to its affordability, accessibility, and broad acceptance. However, recent changes to the regulatory framework in Curacao have altered the landscape, making it crucial for operators to understand the new rules before obtaining or renewing their licenses.
Sweeping changes
As of 2024, the licensing structure in Curacao has seen significant changes. The old system, which included master licenses and sub-licenses, has been replaced by a more straightforward framework consisting of two types of licenses: B2B and B2C. This change simplifies the process for operators and covers all major online gambling activities. Oversight of these licenses now falls under the newly established Curacao Gaming Control Board (CGCB), which is responsible for all licensing and compliance matters, ensuring a more centralized and cohesive regulatory environment.
The application process has also been streamlined, with a user-friendly online portal available for submissions. Applicants can now navigate the process more efficiently, often with the assistance of specialized services like Fast Offshore, which guide operators through the necessary steps. The licenses are valid for one year, requiring operators to stay vigilant regarding renewals, potential revocations, and ongoing legislative changes that might affect their operations. The scope of the Curacao license remains broad, authorizing the provision of remote gambling services across a wide range of activities.
How it was before
Curacao, a small Caribbean island and part of the Kingdom of the Netherlands, has long been a hub for offshore business, particularly in the online gambling sector. The island’s favourable tax conditions and well-developed business environment have made it a preferred destination for many operators. The history of the Curacao gaming license dates back to 1993, when the National Offshore Gambling Decree was issued, laying the foundation for regulated gambling on the island. Licenses were first issued in 1996, marking the beginning of Curacao’s involvement in the online gambling industry.
Before the recent changes, the Curacao licensing system was based on a two-tier structure that included master licenses and sub-licenses. The master licenses were issued by the Ministry of Justice of Curacao and were valid for five years, allowing holders to grant sub-licenses to third parties. However, in 2023, a significant overhaul of the system was initiated. This reform, driven by proposals from the Netherlands, led to the abolishment of the master and sub-license system and the introduction of a new licensing format under the governance of the Curacao Gaming Authority (CGA). The aim was to create a more unified regulatory framework that would enhance the jurisdiction’s reputation and appeal.
A new era
The changes implemented in 2023 and continuing into 2024 have brought in a new era for the Curacao gaming license. The simplified licensing structure now offers two primary types of licenses: B2B licenses for service providers that cater to businesses and B2C licenses for operators that deal directly with players. The new regulatory framework places a strong emphasis on responsible gambling, requiring operators to implement robust measures to protect players, especially those who are vulnerable.
Financial stability is also a key focus, with higher standards now required to ensure that operators are well-capitalized and capable of sustaining their operations. Additionally, there is now a requirement for operators to establish a local office in Curacao, reinforcing the jurisdiction’s commitment to on-island governance.
Player protection and transparency have been significantly enhanced under the new regulations. These measures are designed to create a safer gambling environment for users, with operators required to adhere to strict guidelines that promote fairness and accountability. While Curacao was previously known for its relatively low licensing fees, the new regulatory framework has introduced higher projected annual and licensing fees. Although these costs are still competitive compared to other jurisdictions, they reflect the increased regulatory oversight and the more stringent requirements that are now in place.
Timeline
The timeline of updates to Curacao’s iGaming legislation highlights the gradual implementation of these changes. In July 2023, the Ministry of Finance announced the new licensing regime as the National Ordinance for Games of Chance (LOK) approached implementation. This announcement gave master license holders an additional year to transition smoothly to the new system. By November 2023, the application process for the National Ordinance on Offshore Games of Hazard (NOOGH) master license began, marking the start of a new regulatory era in Curacao’s iGaming industry.
In April 2024, the LOK legislative framework went live, with entities holding NOOGH sub-licenses required to begin transitioning within a nine-month window. Other operators were given a three-month period to adapt to the new regulations. By September 2024, the deadline for LOK exemptions had arrived, officially ending the master license system in Curacao and requiring all gambling operations to comply with the new regulations.
The impact of these changes on the industry and Curacao’s position as a leading iGaming jurisdiction is still being assessed. Opinions among industry experts are mixed. Some believe that the new regulations might reduce Curacao’s attractiveness as a licensing destination, while others argue that the changes will ultimately enhance the jurisdiction’s credibility and long-term appeal. A recent survey revealed that 60% of industry experts are concerned that the new regulations could somewhat diminish Curacao’s popularity. However, 30% believe the changes will have no significant impact, and a small minority, about 4%, even anticipate an increase in Curacao’s credibility and popularity as the new regulations take full effect.
Still appealing
Despite the tightening of regulations, the Curacao gaming license remains an appealing option for operators for several reasons. The license continues to enjoy global recognition, acting as a seal of approval that builds trust with both players and partners. The broad market coverage of the Curacao gaming license, which operates on the principle that “what is not explicitly prohibited is permitted,” allows operators to target a wide range of markets.
Additionally, the Curacao gaming license is cryptocurrency-friendly, accommodating operators looking to engage with this growing market. The license provides flexibility and access to a crypto-literate user base, making it an attractive option for those interested in incorporating cryptocurrencies into their operations.
The Curacao gaming license also offers comprehensive coverage, allowing operators to offer a wide range of gambling activities under a single license. This includes slots, lotteries, live games, and bingo, eliminating the need for separate approvals for different types of gambling activities. This broad scope makes it easier for operators to experiment with different offerings and scale their businesses as needed.
Streamlined application
The application process for a Curacao gaming license has been streamlined, but it remains thorough. Operators must provide all required documentation upfront to avoid unnecessary expenses and delays. The process involves several key steps, including establishing a local presence in Curacao by registering a company and appointing a local representative. Operators must also submit various documents, such as notarised passport copies, a clean criminal record certificate, address verification, and a CV or resume for key executives. Additionally, operators must undergo a technical and compliance audit of their gaming systems, including software, and implement Anti-Money Laundering (AML) measures. Once all the documentation is in order, the application is submitted through an online portal, with the review process typically taking around two months.
Under the new regulatory framework, the costs associated with obtaining and maintaining a Curacao gaming license have increased. The application fee, due diligence fee, and annual fee have all been revised upwards. Operators must also account for additional costs, such as setting up an office in Curacao and obtaining the necessary certifications.
The last word
In today’s competitive iGaming industry, obtaining a license is essential for building trust and ensuring compliance. The Curacao gaming license, with its long-standing reputation and recent regulatory updates, remains a viable option for operators looking to establish or expand their presence in the global market. The ongoing reforms in Curacao are designed to strengthen the jurisdiction’s legal framework, making it an attractive destination for serious operators. For those considering acquiring or renewing a Curacao gaming license, staying informed about the latest developments and maintaining compliance with the new regulations will be key to success. Contact Fast Offshore for more information, or to start the application process.
Original article: https://www.yogonet.com/international/noticias/2024/08/12/75109-curacao-gaming-license-in-2024-a-comprehensive-guide
