In the world of online gambling, a Curaçao licence has long been synonymous with an accessible and trustworthy solution for gaming operators. This small island in the Caribbean, part of the Kingdom of the Netherlands, has established one of the most appealing jurisdictions for the gambling industry, combining moderate taxation with sensible regulatory requirements.
The History of Establishment
The history of online gambling regulation in Curaçao began in 1993 when the government made a pivotal decision to oversee the gaming sector by enacting the National Ordinance on Gambling. This landmark move laid the groundwork for the industry’s future development. By 1996, the first gambling licence was issued, establishing Curaçao as a leader in the regulation of internet casinos. In a remarkably short time span, the island transformed into a recognised hub for online gambling, attracting operators from all corners of the globe.
Licensing Structure
The current licensing system in Curaçao is structured around a unique two-tiered model.
At the top level, there are four companies that hold the master licences:
- Gaming Curacao
- Curacao Interactive Licensing (CIL)
- Antillephone N.V.
- Curacao eGaming
These organisations, granted authority directly by the Curaçao government, are permitted to issue sub-licences to operators of online casinos and bookmakers.
Key Advantages
Financial Appeal
The appeal of the Curaçao licence for operators starts with its financial accessibility—corporate tax is a mere 2% of net profits, and there is a complete absence of value-added tax. Furthermore, operators gain the opportunity to work with cryptocurrencies, which is particularly important in the current landscape of the evolving digital economy.
Versatility and Efficiency
Unlike many other jurisdictions that request separate permits for different types of gambling activities, the Curaçao licence encompasses all avenues: from online casinos and sports betting to lotteries and poker rooms. The licensing process is also characterised by its efficiency, with an average timeframe of 4 to 6 weeks from the submission of the application to the issuance of the permit.
Requirements for Applicants
Corporate requirements
The applicant company must be registered in the jurisdiction of Curaçao and have a local representative (a minimum of three from 1st September 2023). The minimum share capital required is €30,000.
Technical Requirements
The following is mandatory:
- The use of a certified random number generator (RNG)
- The placement of at least one data server on the island
- Encrypted SSL-connection
- Regular technical audit of the systems
Security Requirements
Particular attention is placed on security and player protection.
Operators are required to:
- Implement systems that combat money laundering.
- Verify the identities of their clients.
- Ensure the protection of minors.
- Maintain responsible gaming tools.
The Process of Obtaining a Licence
Preparatory Stage
- Registration of the company.
- Compilation of the documentation package.
- Preparation of the business plan.
- Selection of the licensor.
Submission and Review
Following the preparatory stage, the next step involves the submission of an application accompanied by corporate documents and verification of funding sources. Subsequently, a thorough examination of the documentation and a technical audit of the platform are conducted.
Reforms of 2023-2024
New Regulation Structure
The year 2023 emerged as a pivotal turning point in the history of gambling regulation in Curaçao.
The government of Curaçao prepared a comprehensive overhaul of the regulatory system, that includes:
- The establishment of the new Curaçao Gaming Authority (CGA)
- The transition from a master licensing system to direct licensing
- The introduction of separate B2C and B2B licences
Transitional Period
Current operators will be granted an eighteen-month transitional period to adjust to the new requirements. Enhanced measures for player protection and the fight against money laundering are anticipated.
What specific changes have occurred in licensing?
In the early autumn of 2023, significant reforms in the regulation of the gambling industry came into effect in Curaçao. The new system aims to reinforce oversight and ensure a higher level of security within the sector.
The key changes include:
- A ban on the transfer and lease of licences between companies, effective from September 2023, which eliminates the possibility of evading compliance with new regulations.
- The centralisation of the licensing process under the authority of the Curaçao Gaming Control Board as the sole regulatory entity.
- The introduction of stringent requirements for licence applicants, including the verification of financial stability and professional competence.
- The implementation of a regular auditing system for licensees to ensure adherence to established standards.
- The enhancement of measures aimed at safeguarding players and preventing gambling addiction.
New requirements have also been established regarding the organisational structure:
- The obligatory presence of three key company personnel directly on the island.
- The prioritisation of employing local specialists to support the local economy.
- An increase in the cost of licensing, which may impact the attractiveness of the jurisdiction for new market entrants.
These transformations are aimed at establishing a more transparent and honest gambling sector in Curaçao.
Curaçao is taking significant strides to enhance its regulatory framework for the gaming industry and to ensure that operators are held accountable for adhering to international standards. Beginning on 1st September, the government will issue direct licenses to gaming operators, streamlining the regulatory reform process. This decision was announced by Finance Minister Javier Silvania during iGaming NEXT Valletta 23, where he expressed concern regarding troubling corporate behaviours that necessitate immediate action.
Conclusion
A Curaçao licence remains the optimal choice for companies that are entering the online gambling market. The combination of affordable fees, reasonable requirements, and a robust legal framework renders this jurisdiction appealing to both emerging operators and seasoned players on the market.
While the recent reforms have introduced certain modifications to the existing system, they are intended to bolster Curaçao’s reputation as a modern and responsible gaming regulator. The island’s government is committed to finding a balance between enhancing regulation and maintaining the jurisdiction’s attractiveness to gaming operators.
