Curaçao, known for its thriving online gambling industry, is taking a significant step towards modernizing its gambling regulations.
The Minister of Finance, Javier Silvania, has submitted the anticipated National Ordinance for Games of Chance (LOK) to the parliament, marking a pivotal moment in the island’s efforts to revamp its licensing structure. This move comes after a period of uncertainty that led many Curacao-licensed iGaming firms to explore alternative jurisdictions.
Minister Silvania expressed his satisfaction with reaching this final stage, stating that the submission of the LOK to Parliament is a leap towards transformative progress. He highlighted that the newly proposed regulations are the result of consultations and collaboration with the online gambling industry. He said this collaborative approach ensures that the new framework is well-rounded and workable.
Curaçao has faced increasing pressure to modernize its gambling regulations and align them with contemporary compliance standards and anti-money laundering requirements. The changes have been in the making for some time, leading to a period of uncertainty. This uncertainty prompted many Curacao-licensed iGaming firms to explore alternative jurisdictions like Anjouan, Kahnawake or the Isle of Man. The submission of the LOK and the clarity on the pricing structure now signal a crucial step toward restoring regulatory stability to the jurisdiction.
Curaçao is in the process of transitioning from its existing National Ordinance on Offshore Games of Hazard (NOOGH) legislation to the new LOK. Under the old NOOGH rules, operators were not required to specify whether they operated as B2B or B2C. However, the new rules now necessitate this information, introducing distinct requirements for each category.
One of the significant changes brought about by the LOK is the confirmation of licensing costs. The fees under the current NOOGH legislation and the planned fees under the LOK rules differ significantly.
Companies transitioning from NOOGH to LOK are not required to pay the ANG 48,000 annual fee immediately upon enactment. This fee becomes due for the first time on the anniversary of the license, with the monthly fee dropping from ANG 7,000 to ANG 4,000 at that point.
Under the revamped framework, a key change is the establishment of the Curacao Gaming Authority, which will take a more direct role in licensing. Previously, the Master License and Sub-License model provided flexibility but faced criticisms for lacking centralized control. The government’s decision to issue all licenses, whether for B2B or B2C operations, directly aims to enhance regulatory oversight, align with international standards, and bolster the island’s reputation as a responsible and compliant jurisdiction in the global iGaming industry.
While the confirmation of costs brings much-needed clarity, there is still some uncertainty. Operators will have to consider these additional costs as they navigate the evolving landscape. The new fees are notably higher than the old ones, reflecting the enhanced compliance requirements under the new regime.
