Curaçao licensing delays caused by influx of gaming applications

Interest in entering Curaçao’s gambling market has surged significantly, as indicated by Cedric Pietersz, managing director of the Gaming Control Board (GCB). In response to this unprecedented demand, the GCB is actively working to enhance its licensing processes to accommodate the influx of applications.

During an interview with iGB, Pietersz revealed that the GCB received an impressive 740 online gambling license applications during the first half of the year, a window that closed in April. He anticipates an additional 300 applications in the coming months with the opening of a new licensing window in July.

### Enhancing Infrastructure to Meet Demand

Pietersz acknowledged the urgent need for the GCB to improve its internal infrastructure in order to meet the goal of processing applications within an eight-week period under the new regulatory framework.

“We need to accelerate our internal processes and allocate more resources to handle such a high volume of applications,” Pietersz noted. Currently, the GCB is processing about 10 applications per week but aims to increase this capacity to between 20 and 30.

However, he also indicated potential delays in the overall licensing process as the regulator finalizes the new legislative framework. “Transitioning to a new regime has its complexities. We aim for an efficient process, but multiple stakeholders’ interests complicate matters. Both the government and the GCB strive for a speedier licensing process, but reality often presents numerous variables,” he added.

### Curaçao’s New Framework: A Double-Edged Sword

The surge in applications stems from the introduction of a new licensing regime along with updated guidance on how to navigate the application process and understand the scope of new gaming licenses.

A recently released nine-page document outlines that an application will be deemed complete if it includes:
– The online gaming application form
– The personal history disclosure form
– The corporate and business information form

The comprehensive regulatory framework, known as the National Ordinance for Games of Chance (LOK), was initially established in September 2023 and is projected to be fully operational by Q4.

It is noteworthy to mention that master licenses, which have long been a cornerstone of Curaçao’s gambling sector, will soon be phased out. The first of the existing master licenses will expire on August 18, with subsequent expirations occurring until January 31, 2025. This transition to the new regime has introduced confusion among applicants, further compounding delays.

While addressing this issue, Pietersz stated, “[Master license holders] understand the necessity for change. The GCB aims to partner with them throughout this transition.” He reassured stakeholders that the objective is not to exclude them from the industry but to encourage a shift in their business approach.

### Navigating Increased Complexity

The implementation of various application types for B2B, B2C, and B2B2C operators has added another layer of complexity to the licensing process. “We are now faced with a plethora of applications, and regrettably, the quality of these submissions has been less than optimal,” Pietersz remarked.

A significant number of applications face delays at the clarification stage due to missing documentation. Consequently, many applications are returned to applicants during the initial review phase, further extending processing times.

To expedite the licensing process, ongoing communication is paramount. The GCB is committed to maintaining consistent dialogue with current license holders, guiding them through the re-application process as mandated by the new framework.

### Strengthening Enforcement Against Unlicensed Operators

The upcoming regulatory changes aim to bolster Curaçao’s standing as a destination for regulated gaming, moving away from the gray market operations that have historically tarnished its reputation. Curaçao’s Minister of Justice, Javier Silvania, previously asserted that the LOK would serve as a safeguard against unlicensed operators.

Pietersz expressed confidence that the GCB would effectively enforce compliance with the new regulations, stating, “While we do not aim to punish operators, we will take appropriate action if compliance issues arise.”

He further explained that the GCB maintains strong connections with foreign regulators, ensuring a collaborative approach to enforce regulations. In cases where regulatory complaints are received, the GCB collaborates with relevant authorities to ensure compliance and can escalate matters to license revocation if necessary.

A pertinent example is the case of the Curaçao-licensed betting operator Bovada, which faced regulatory scrutiny for illegally operating in several U.S. states, leading to its blockage by states like Michigan and Colorado earlier this year.

### Conclusion

As Curaçao navigates this new regulatory landscape, it is essential for operators to adapt swiftly to the changes. The GCB’s commitment to enhancing its processes and enforcing strict regulations will play a crucial role in establishing Curaçao as a reputable and reliable jurisdiction for online gaming. With continued collaboration and a focus on quality applications, the future of the Curaçao gambling market appears promising, albeit complex.