The Gaming Control Board (GCB) of Curaçao has issued a statement addressing allegations regarding its licensing authority and regulatory practices amidst ongoing reforms under the National Ordinance on Games of Chance (LOK). The response follows claims made by opposition politician Luigi Faneyte, who accused the regulator of corruption and financial mismanagement within the licensing framework.
Faneyte, representing the Real Alternative Party, recently filed a report with the attorney general’s office, alleging that gambling licenses were issued without a legal basis, resulting in financial losses. The GCB categorically denied these accusations, asserting its authority to oversee all licensing processes.
The GCB clarified that its mandate to issue gaming licenses originated from the Ministry of Finance in March 2020, with updated protocols introduced in November 2023. The regulator stated that it holds exclusive authority to grant, modify, suspend, or revoke licenses.
“The GCB has the authority to grant, amend, suspend temporarily, revoke, or deny licenses, as well as attach terms and conditions to licenses. The allegation that the GCB lacks the legal authority to grant licenses is therefore incorrect,” the board stated.
Since 2020, the GCB has been issuing licenses under the National Ordinance on Hazard Games (NOOGH). Once the LOK framework is fully implemented, NOOGH licenses will transition to provisional LOK licenses, with operators required to meet updated compliance standards within a year.
The GCB detailed its multi-phase licensing process, which includes rigorous due diligence checks, business plan evaluations, and reviews of operator websites. The board also dismissed allegations of fund mismanagement, stating that all licensing fees are paid directly into a government-controlled bank account.
“There is no scope for mismanagement. The assertion that funds may have been embezzled is therefore not correct. Once the payment has been received, the license will be granted by the GCB,” the regulator told iGB.
The regulator is exploring the integration of advanced technologies, including artificial intelligence, to streamline its manual operations in the future.
The GCB also tackled issues regarding player complaints and disputes. Under the current framework, such matters are handled by operators based on their terms and conditions. However, the LOK system will make Alternative Dispute Resolution (ADR) mandatory, allowing for independent arbitration, mediation, or negotiation of disputes.
Complaints and ADR reports will serve as inputs for the GCB’s risk-based supervision process, enhancing regulatory oversight, the regulator said.
The statement touched on the recent bankruptcy of BC.Game, a Curaçao-licensed operator. The GCB clarified that the case is administrative and stems from a dispute between the platform and players. A trustee has been appointed to oversee payments to affected players.
The board refrained from commenting on specific regulatory measures but noted it is consulting with the involved entities to determine appropriate actions. Regarding allegations of Curaçao-licensed operators violating foreign regulations, the GCB highlighted its reliance on decisions by competent local authorities in those jurisdictions.
“In this context, the GCB relies on formal decisions issued by competent foreign authorities. Enforcement actions taken by the GCB depend on factors such as the severity of the violation,” the board concluded.
Original article: https://www.yogonet.com/international/news/2024/12/03/87254-curacao-gaming-board-defends-practices-during-regulatory-overhaul
