In a landmark decision in December 2024, Curaçao's parliament has approved the National Ordinance on Games of Chance ('LOK') by 13 votes in favour and with only 6 votes against. This reform marks a transformative moment for the island's regulatory environment, fully replacing the outdated master licensing system with a more transparent and comprehensive regulatory framework. The framework is ultimately designed to help to align Curaçao's gambling industry with international standards and sets the foundation for a "modern and robust" regulatory environment in Curaçao.
At the heart of this reform is the establishment of the Curaçao Gaming Authority ('CGA'), which replaces the Gaming Control Board (GCB) as the independent regulatory body. The CGA will oversee both B2C operators and B2B suppliers, ensuring compliance with:
- Stricter anti-money laundering (AML) protocols;
- Enhanced responsible gaming requirements;
- Stronger protections for player by enforcing stricter responsible gambling protocols, ensuring that operators are held accountable for safeguarding vulnerable individuals.
Key Changes Under the LOK
The LOK introduces significant changes to licensees in Curaçao:
- Tackling Unregulated Gambling - The LOK directly tackles illegal gambling activities by ensuring that only entities with a valid CGA-issued license can operate in or from Curaçao's borders. Therefore, performing gambling activities in or from Curaçao without a CGA-issued gaming license is strictly prohibited. Additionally, licenses granted under the LOK are non-transferable and strictly prohibit other parties from operating under the same license.
- Improving Financial Integrity: LOK introduces financial transparency requirements, aiming to help prevent fraud and money laundering within the gaming industry.
- Increased reporting requirements: Under LOK, licensees shall be required to submit a number of compliance reports to the CGA demonstrating compliance with the regulatory standards.
- Local Presence: Licensees must employ at least one key staff member within four (4) years and three (3) within five (5) years (excluding the requirement for a local director), operating from an immovable property in Curacao.
Transition Period for Existing Licence Holders
Current and existing license holders shall be granted a transition period of up to six months, with the possibility of an additional six-month extension, to align and comply with the new requirements under the LOK.
How We Can Help
Adapting to these changes can be challenging, however, we are here to assist you in navigating these regulatory changes. Whether you are an existing licensee transitioning to the new framework or a prospective entrant to Curaçao's gaming market, our team is equipped to guide you through the licensing process, ensure compliance with the new regulations, and provide you with specific and tailored support.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
