The Curaçao license has always been popular with gambling operators. Several hundred companies around the world have obtained their licenses due to the simple application process, lenient laws, and reduced tax rates.

 

In September 2023, the Compliance Ordinance on Games of Chance came into force on the island, which introduced new regulations and significant Curaçao gambling licenses changes. This is because the local government was concerned about the risk of unfair practices, as previously licenses could be distributed in an almost unlimited manner.

 

Landsverordening op de Kansspelen (LOK) – the new law that will regulate gambling in Curaçao will come into force in the 3rd quarter 2024.

 

Curaçao gaming licenses changes are aimed at preventing money laundering, increasing business transparency and adhering to the rules of responsible gaming.

 

Overview of Curaçao Gaming License

Until 2024, Curaçao’s licensing system was based on the concept of two types of licenses:

 

  • master licenses;
  • Sublicenses.

 

Master License holders had full authority to grant sublicenses to other gambling operators, allowing multiple companies to operate under a single license. This structure provided unprecedented flexibility and was particularly attractive to start-ups and entrepreneurs because of the lower barriers to entry.

 

Following the changes in Curaçao gaming licenses, there are two types of certificates: B2B (business to business) and B2C (business to consumer), which cover all major types of online gambling, which is also a key advantage of Curaçao.

 

For the B2B license, the focus is on the services provided. It is suitable for companies that develop games or supply software to third party in the iGaming industry.

 

The B2C license is issued to companies that provide users with access to classic casino games, lotteries, sports betting, etc.

 

Why Get a Gaming License in Curaçao?

Companies operating in the gambling industry must obtain a license in order to comply with the requirement and in order to gain credibility. Having a license indicates the legitimacy of the business and makes it easier to open financial accounts.

 

A license obtained on the island has the following advantages:

 

  1. Short timeframe for issuance.
  2. Extension to different types of gambling activities.
  3. Low tax rate.

 

Curaçao has always been and still is an island of unlimited gaming opportunities in the online gambling industry due to its attractive licensing. With this license, it is possible to operate on the international market.

 

The island is an independent Dutch territory and therefore can enjoy the benefits associated with the European Union. But it does not have the huge taxes that are common everywhere on the continent. This is the reason for the benefits of obtaining a license.

 

Recent Changes in Curaçao Gaming Licenses

The key features of the new system following changes in Curaçao gambling licenses are:

 

  1. Strict standards that address the financial stability of the operator and the transparency of its business.
  2. A ban on sharing, meaning that each operator must obtain its own Curaçao gambling license.
  3. Enhanced player protection: regular audits are mandatory to protect users. Increased AML (anti-money laundering) requirements require operators to apply robust KYC (Know Your Customer) and CDD (Customer Due Diligence) processes.
  4. Responsible Gambling Regulations.
  5. Unlimited number of main domains, including subdomains (will be subject to additional fees).
  6. Mandatory physical presence of an office on the island.

 

To ease the transition to the new rules, already issued master licenses are included in the LOK, but without the right to sublicense. That is, all existing master license holders will have the right to conduct business under the LOK. And those companies that were operating under a sublicense will no longer be able to legally offer their services due to the lack of a valid license.

 

All exemptions from LOK that were in place previously will be cancelled. This ensures that active iGaming activities are only carried out under a LOK license or will cease immediately.

 

New Regulatory Authorities

The Compliance Ordinance on Games of Chance created the Curaçao Gaming Authority (CGA). The CGA has become the central authority responsible for issuing both B2C and B2B licenses. In doing so, stricter control and supervision of the implementation of the new law is ensured.

 

The Curaçao Gaming Control Board (GCB) is responsible for overseeing the online gaming sector, as well as LOK compliance. And the Financial Intelligence Unit collects and analyses information that may be related to criminal financial activities.

 

Elimination of Sub-Licensing System

Once the law finally comes into force, the CGA will become Curaçao’s only authorized organization to issue licenses (B2C and B2B) to companies and service providers.

 

Under the new rules, organizations will have to meet strict criteria set by the regulator to prove their financial stability, integrity, and competence. The aim is to only grant Curaçao licenses to reputable and capable organizations operating responsibly within the jurisdiction.

 

This means that iGaming companies can no longer opt for sublicenses from master holders, nor can they share or lease licenses.

 

Introduction of B2B Licensing

B2B licenses were introduced specifically for service providers who serve businesses rather than organizations dealing with end consumers. Such certificates are suitable for firms involved in the development and promotion of online gaming or gambling software.

 

Financial Implications

Curaçao has been known for its loyal pricing regime. Now, projected annual and license fees are set to rise. Operators who plan to obtain a Curaçao license must now budget an estimated minimum of 55,000 EUR for general fees. This includes, for example, the initial and annual fees, the timely payment of which is one of the conditions for obtaining (renewing) a license.

 

Updated Fees and Charges

The cost of a Curaçao gambling license depends directly on the type of activity of a particular organization and the services it provides. After the LOK comes into force, there will be not only a registration fee and an increased annual fee but also a due diligence fee, which was not charged before. There will also be an annual subscription fee for the use of an unlimited number of domains.

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Enhanced Security and Transparency Measures

Applicant companies will be required to provide the regulator with clear and transparent information about their structure.

 

The legislation will also establish a mandatory system of regular audits and inspections for all licensees. License holders’ financial transactions and operations will be strictly monitored. This should help to effectively prevent any cases of money laundering or fraud.

 

LOK’s main objectives are:

 

  • Protecting Curaçao’s international reputation;
  • combating criminal activities;
  • A safe and secure gaming environment.

 

Strict responsible gambling regulations will also be imposed on operators to prevent gambling addiction and the involvement of minors in gambling.

 

Responsible gambling regulations include the following features, which are provided to users for self-control:

 

  1. Limits on maximum bets (to prevent excessive spending).
  2. Pauses during which no games may be played.
  3. Self-exclusion for a certain period or permanently.

 

Companies are also required to provide users with information about responsible gambling and resources to help addicted players.

 

All of these practices are designed to ensure that Curaçao can meet international standards and establish itself as a reputable licensing destination.

 

Periodic Audit Requirements

All companies that have obtained Curaçao gaming licenses undergo regular audits which show that these businesses comply with the established requirements. Auditing not only helps to ensure that all business standards are met, but also serves as a preventative measure against breaches.

 

Once a Curaçao gambling license is issued, audits will be carried out every six months for the first two years. After this period, audits are scheduled at a frequency of once a year.

 

The audits include:

 

  • reviewing financial records;
  • analyzing the operation of the software;
  • verification of compliance with safety standards.

 

This also includes verification of compliance with responsible gambling regulations.

 

Organizational Structure Requirements

In order to obtain a Curaçao gaming license, a local company must be registered and fully operational on the island. A physical office must be in operation for five years from the date the law comes into force. It is important that the office premises comply with gambling requirements.

 

Appointment of Key Personnel

When establishing a gambling company in Curaçao, business owners should appoint at least three local staff to key positions. This allows for oversight of operations and strengthen communication between regulators and licensee companies.

 

Responsibilities and Requirements for Key Roles

The key positions to which local staff are appointed are Director of Operations, Chief Financial Officer, Director of Security, and General Counsel.

 

Responsibilities of the Director of Operations:

 

  1. Coordination of all operational processes.
  2. Responsibility for meeting corporate goals.
  3. Management of company resources and budgets.

 

Requirements:

 

  • higher education in management or economics;
  • at least 5 years of experience in gambling;
  • leadership and teamwork skills.

 

Responsibilities of the legal advisor:

 

  1. Providing legal advice and support.
  2. Monitoring legal compliance.
  3. Participating in legal analysis and contract formation.

 

Requirements:

 

  • legal education;
  • experience in the gambling industry;
  • knowledge of local legislation.

 

Responsibilities of the CFO:

 

  1. Managing the company’s finances.
  2. Budget planning and financial forecasting.
  3. Reporting to regulatory authorities.

 

Requirements:

 

  • higher education in finance (accounting);
  • experience in the gambling industry;
  • financial analysis skills.

 

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Responsibilities of the Security Director:

 

  1. Monitoring the security of the gaming platform.
  2. Responding to security incidents.
  3. Maintaining security standards.

 

Requirements:

 

  • IT or cybersecurity education;
  • at least 3 years of experience in cybersecurity;
  • knowledge of gambling security standards.

 

Depending on the specifics of the services provided, key positions may be adjusted.

 

Challenges in Staffing for Gaming Businesses

The remoteness of the island from the mainland can create some difficulties in attracting qualified staff. Although many professionals are highly trained, the labor market cannot always meet the needs of the gambling industry. Also, the cultural and language barriers of the local environment (most of the population speaks Papiamento) may necessitate additional training.

 

Employment Regulations in Curaçao

The new hiring requirements will prioritize locally qualified employees. This will not only ensure the local development of Curaçao’s economy but also ensure the quality of the structure and personnel of companies holding gaming licenses on the island.

 

Given the new regulations, all staff must be officially employed in Curaçao, which may increase administrative costs and complicate the recruitment process.

 

How the Changes Affect Current and Prospective License Holders

The LOK rules will lead to major changes in the gambling sector, which will also affect current licensees.

 

License holders will be required to employ a minimum of three on-island staff for all vital positions. This will increase the burden on companies to find qualified people and will require restructuring within organizations.

 

Expected impacts on businesses include:

  • high administrative costs (due to the need to prepare for audits);
  • possible fines and temporary suspension of operations (in case of violations);
  • increased trust on the part of players in licensed platforms (due to increased control).

 

In addition, businesses that hold old-style licenses will have the opportunity to sign up for a new permit with an 18-month transition period to sort out any legal and organizational issues.

 

How to Obtain a Curaçao Gaming License in 2024

A company planning to obtain a Curaçao gambling license must set up a physical business in Curaçao and also ensure that it meets regulatory requirements.

 

The application process has become more stringent than before. Understanding the requirements is crucial for any operator who wishes to operate in the online gambling market.

 

The key requirements for an applicant are:

 

  1. Have a legal entity registered in Curaçao.
  2. Have a local representative on the island.
  3. Show proof of financial stability and initial capital.
  4. Show a clear and transparent corporate structure.
  5. Have a minimum of one physical company server within the jurisdiction.
  6. Identify Ultimate Beneficial Owners (UBOs) and file reports on them.
  7. Comply with CDD requirements and AML and KYC regulations.
  8. Provide a technical audit of the gaming system and its software.
  9. Submit a detailed description of the games provided.

 

Companies must also demonstrate measures to protect players and promote responsible gaming.

 

Required Documentation

The documentation required to obtain a Curaçao gaming license can vary depending on the company’s activities.

 

Generally, the set includes the following documents:

 

  • information on key employees (copies of passports and diplomas, CVs, letters of recommendation, and proof of official employment);
  • certificates of criminal record of key executives;
  • constituent documents of the company;
  • business plan;
  • financial statements of the company;
  • documentary proof of the company’s solvency;
  • a lease agreement confirming the company’s physical presence on the island;
  • proof of ownership of the domain;
  • documentation to show compliance with responsible gambling rules and anti-money laundering measures.

 

Details of the software used (certificates), and the business’ marketing strategies should also be prepared.

 

Application for a License

Applicants submit all required documents to the CGA and complete the following three forms:

 

  1. Online Gaming Application Form.
  2. Business and Corporate Disclosure Form.
  3. Personal History Disclosure Form.

 

It should be noted that registration and obtaining a Curaçao license can be done remotely.

 

Types of Gaming Licenses Available

Two different types of licenses are available:

 

  • For B2B: the focus is on the services provided rather than the type of activity.
  • For B2C: traditional gambling activities provided by the business to the end consumer are regulated.

 

Compliance Checks

The Curaçao licensing authority conducts thorough compliance checks on the company. This ensures compliance with anti-money laundering regulations, responsible gaming standards, and financial stability.

 

Technical Assessment

The company’s software and the games offered by the applicant are assessed for fairness, security, and compliance with technical standards.

 

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Final Authorization and Licensing

If all the criteria that have been applied to the business have been fully met, then the company is granted a gambling license. The process can take around six months and depends on the complexity of the application and some other factors.

 

Impact on the Gaming Industry

The new law puts the gambling industry on a path of strict regulation, where transparency, safety, and responsible gambling take center stage. Of course, the success of such reforms directly depends on the commitment of all parties in the gaming industry.

 

Current license holders must adapt to changes that may entail restructuring their businesses, increased operating costs, and stricter compliance requirements.

 

The following organizations may be at risk of extinction:

 

  1. Start-ups that do not have sufficient financial reserves (or operating history) to prove reliability and proper qualifications.
  2. International companies that are based off-island (they may find it difficult to hire local talent and reorganize their business).
  3. Companies that ignore responsible gambling.

 

Curaçao gaming license changes also have wider implications, as they affect the global regulation of online gambling and set new standards for the entire gambling sector worldwide.

 

Impact on Operators and Investors

Online gambling providers and investors must adapt to changes in casino regulations in Curaçao if they are to continue to operate successfully. Regulatory shifts also offer opportunities for innovation in the field (e.g., data protection). This means that Curaçao gaming license changes can expand the market for operators and investors.

 

Strict online gambling regulations are linked to global trends and growing public attention to player protection, anti-money laundering measures, and responsible gaming. Operators and investors must recognize this and adapt to the new business rules.

 

How Lawrange Can Help You

It is difficult to assess the full impact of all the Curaçao gambling license changes on the gaming industry, but time will tell. The move to a transparent and safe gambling sector is bound to increase player confidence.

 

Suppose you want to declare your business reliable and compliant with all mandatory requirements. In that case, Lawrange will help with the paperwork and application for a Curaçao gambling license.

 

Conclusions

Of course, in today’s world, acquiring a license is out of the question. Even start-up brands rarely limit their activities to just one jurisdiction. A Curaçao license would be an excellent choice to expand your geographical reach and look to the future with confidence, especially thanks to the reforms introduced.

 

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