New Curacao license fees and launch of online portal

The picturesque island of Curaçao in the southern Caribbean Sea has long been a hub for online gambling operators. With its tropical allure and a well-established online gambling industry, Curaçao is now modernizing its gambling legislation to meet international standards. You can read our past updates via here and here. 

The upcoming Landsverordening op de kansspelen (LOK), or the Gambling Ordinance, will usher in a new era of online gambling regulation on the island. In anticipation of this landmark legislation, the Minister of Finance of Curaçao has resumed the issuance of licenses under the existing National Ordinance on Offshore Games of Hazard (NOOGH). This move aims to facilitate a smooth transition for operators from the current legal framework to the forthcoming LOK.

Who is Eligible to Apply for a Curacao Online Gaming License?

The new rules for obtaining a Curacao online gaming license are outlined to accommodate two primary categories of applicants:

• Direct License Applicants

These are operators who seek to acquire an online gaming license directly from the Curaçao Gaming Control Board (GCB) under the current NOOGH regulations.

• Registered Operators (those holding a sublicense)

This category includes operators currently offering online gaming services in Curaçao under a contractual agreement with an existing license holder. They have the option to apply for a Curacao online gaming license under either the current NOOGH regulations or the future LOK. 

The portal shall open for registrations on November 1, 2023.

Licensing Objectives

The regulations governing the issuance of Curacao online gaming licenses are guided by internationally accepted objectives aimed at fostering a secure and responsible online gambling environment. These objectives include:

a) Prevention of Fraud and Illegal Activities

Efforts are made to prevent fraudulent activities and other illegal actions associated with games of chance.

b) Player Protection

Ensuring the safety and protection of players, including minors, and ensuring prompt payment of player winnings.

c) Prevention of Gambling Addiction

Implementing measures to prevent gambling addiction and protect vulnerable individuals, such as minors.

To meet these objectives, licensed operators must adhere to specific criteria:

• Safe: Games offered, game equipment, and systems must be resistant to risks such as theft, malware, and internet crime.
• Responsible: Operators must treat players fairly, establish safeguards against gambling addiction, and protect vulnerable individuals.
• Reliable: The integrity, stability, and continuity of the games provider must be unquestionable, especially concerning money laundering and financing terrorism.
• Transparent: All operations of the provider must be accessible, transparent, and properly administered.

Based on these principles, the GCB has the authority to grant, suspend, or revoke licenses and impose conditions and restrictions to ensure the safe, responsible, transparent, and reliable operation of games of chance in or from Curaçao.

Requirements for Applying for a License

To be eligible for a Curacao online gaming license, applicants must meet specific criteria:

• Be a legal entity incorporated under Curaçao’s laws with a registered office in Curaçao.
• Engage in critical activities such as player management (registration and verification of players) and funds management (financial transactions, managing player funds, and creating bonuses).

Applicants must complete and submit the following forms:

• Online Gaming License Application Form
• Business and Corporate Disclosure Form
• Personal History Disclosure Form

The GCB focuses on assessing the integrity of the applicant, ultimate beneficial owners, qualifying interest holders, statutory directors, managing directors, and compliance officers. Financial integrity and the accessibility of delivery channels from the player’s standpoint are also evaluated.

Licensing Process and Fees

The GCB aims to decide on license applications within two months of receiving complete and compliant submissions. Licensees are granted licenses with a maximum validity of one year, subject to earlier revocation or transitional provisions under future Curaçao laws.

License holders are subject to various conditions, which apply universally and may also include specific conditions tailored to individual license holders based on their unique circumstances.

Licensees are required to pay fees set by national decree as outlined in the NOOGH regulations. Although the new legislation is not yet published, we anticipate the fees to be around €49,385. These costs can be spread out through monthly instalments of around €4,115. We have derived these numbers from the current applicable legislation, however, it may be subject to change once LOK is published. 

Application Submission and Forms

Applicants must use the latest versions of the Online Gaming Application Form, Business and Corporate Information Form, and Personal History Disclosure Form, all of the forms are available on the official registration portal. 

These forms must be completed digitally and signed using digital signatures. Handwritten forms are not accepted. Some forms require additional documents, and applications will not be processed until all information is complete and accurate.

Key Provisions of the License

Once granted, the license specifies several key provisions:

• The license is granted to a company established under Curaçao’s laws with its registered office in Curaçao.
• The license is typically valid for one year but may be terminated due to revocation or future legislative changes.
• Licensees are authorized to offer remote games of chance exclusively and must not provide goods or services other than licensed games.
• Compliance with GCB policies, guidelines, and directives related to licensed games of chance is mandatory.

Responsibilities and Obligations of Licensees

Licensed operators in Curaçao must fulfill various responsibilities and obligations, including:

• Prohibiting residents of Curaçao, individuals under 18, company employees, and self-excluded players from participating in games of chance.
• Ensuring no negative balance on player accounts and not allowing players to participate without sufficient account balances.
• Seeking prior approval from the GCB for intended changes, including new domains, ultimate beneficial owners, qualifying shareholders, directors, or key personnel.
• Maintaining a safe and secure gaming environment, offering games without service interruptions, protecting player data, and ensuring integrity throughout operations.
• Adhering to information security policies and procedures, with periodic audits as required by the GCB.

You can find the full list of conditions here. 

Games Certification and Transparency

All games offered by license holders must be certified for fairness by independent testing laboratories. Games provided by third-party providers must also be certified. Proof of certification must be submitted to the GCB within specified timelines.

Licensees are required to make their general terms and conditions accessible to players. These terms must be clear, unambiguous, and cover various aspects, including amendments, player obligations, and dispute resolution.

Complaints Handling and Responsible Gaming

License holders are obligated to establish transparent, simple, and free procedures for handling player complaints, ensuring they are easily accessible. They must also provide players with the ability to set playing and deposit limits and allow self-exclusion.

Marketing and advertising activities must be honest and not target minors or problem gamblers. Responsible gaming policies and procedures must be in place, subject to audit by the GCB.

Reporting and Administrative Obligations

Licensees are required to maintain separate records for licensed games of chance, ensuring transparency and compliance with the law. Annual accounts must be submitted to the GCB by a specified date. If necessary, interim reports may be requested.

License holders must provide the GCB with information and reports necessary for supervision, including change reports and incident reports. Incident reports must be submitted within 24 hours of any relevant incident.

License Suspension and Revocation

The GCB has the authority to suspend or revoke licenses under various circumstances, including violations of the law, license conditions, or financial obligations. Licensees are entitled to a hearing before any suspension or revocation decision is made.

Supervision and Cooperation

Supervisors designated by the GCB have the authority to request information, access records, and conduct investigations to ensure compliance with the law. Cooperation with these supervisors is mandatory.

Conclusion

Curaçao is taking significant steps to modernize and enhance its online gaming regulation. With the forthcoming LOK, the island aims to align its gaming laws with international standards and expectations. In the meantime, the resumption of license issuance under the existing NOOGH regulations allows operators to continue their activities while preparing for the transition to the new legal framework.

Therefore, although the final legislation has not been published yet, current and new operators can register through the portal starting from the 1st of November, 2023. We advise our clients interested in the transitional period in Curacao to contact us to discuss your registration with the new Regulator.