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EU Regulators Back Curaçao Gambling Reform
By Shane Addinall Jul 17, 2022 LegalityCuraçao seeks to join the leagues of revered regulators in the global gambling market. With the help of industry leaders, the Caribbean Island proceeds to overhaul its licensing regime and establish an independent regulator.The Caribbean Island of Curaçao sets out to clean up and revamp its gambling industry following continuous criticism from peers. Because of the country’s low licensing standards and Master Licence system, many unscrupulous operators own a Curaçao licence. Now, the country seeks to regain control of the sector and repair its reputation.
Its first step in the regulatory overhaul includes establishing a gambling regulator that will oversee the licensing regime and hold operators accountable. Among other changes, tighter Anti-Money Laundering laws accompany the reform process, and licensing fees will become part of the process.
The region’s finance minister believes a drop in operators is inevitable, and he does not see this as a problem. Dutch Minister, Franc Weerwind, expressed his support for the overdue changes.
A New Dawn for Curaçao
Until now, gambling operators had to accomplish very little to get a licence from Curaçao. This stems from the country’s regulatory system that allows its four master licence holders to issue sub-licenses as they see fit. The four businesses with the master licences have the most control over licensing in the region.
Curaçao’s Council of Ministers approved a bill to transform its gambling sector into a reputable industry on par with its international peers. The Kingdom of Netherlands constituent introduced its plans to launch a new independent gambling regulator to oversee licensing while liaising with other industry inspectorates. As the newest regulator, the Curaçao Gaming Authority (CGA) will issue both B2C and B2B licences to approved operators.
Minister of Finance, Javier Silvania, noted the new regulations will push certain operators out of the region, and he has no problem with this. The Minister expressed the need for Curaçao-based businesses to contribute taxes to the government and explained that those who don’t contribute are unwanted. Silvania also considers the guidance from the Netherlands as a positive influence from an industry leader.
The End of the Line
An investigative journalism company estimated that the Island of Curaçao has approximately 12,000 illegal gambling operators supplying services under its low-standards licence. The investigation uncovered that 40% of the unregulated gambling industry stems from the sub-licence system of Curaçao. Many operators with this licence have injunctions against them from regulators around the globe.
Increased pressure from the Dutch parliament and other jurisdictions, plus a motivated government that seeks reform, resulted in the bill to turn it all around. The reform comes with the benefit of revenues flowing into the Island’s coffers and a repaired reputation with peers.
Current sub-license holders have 12 months to convert, and only those who registered are eligible for a transitional licence to operate in the meantime. Malta Gaming Authority’s chief, Mario Galea, detailed that licence holders must pay a €4,000 application fee, a €12,000 annual licence fee, and a €250 monthly regulatory charge under the new law.
Besides upholding enhanced AML controls, new licensees must employ at least three local staff members in key positions living on the Island. Gibraltar recently introduced similar regulations with its new Gambling Act. Curaçao’s gambling authority will enforce gambling regulations and has the power to revoke licences, but the independent body will also cooperate with other regulators to prevent operators from targeting certain jurisdictions.
EU Leaders Support the Overhaul
The Netherlands specifically expressed concern about illegal operators from Curaçao targeting Dutch gamblers. In 2021, the Minister of Legal Protection at the time, Sander Dekker, promised reforms for the region, and Minister Silvania attributes part of the reforms to support and advice from the Dutch government.
Minister Silvania said since the Council of Ministers approved the bill, the next steps include a review with advisory bodies and the final parliamentary approval. Previous MGA chief, Galea, believes no drastic changes will happen, and Silvania hopes for approval by year-end.
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