Curaçao parliament approves LOK gambling licensing framework
The passage of the National Ordinance for Games of Chance (LOK) marks a transformative moment for Curaçao’s gambling industry, introducing a comprehensive regulatory framework alongside a robust licensing system.
On December 17, the Curaçao parliament ratified the LOK with a decisive vote of 13 to 6, signaling strong legislative support for the new gambling regulations.
Aideen Short, a PR and marketing consultant for the Curaçao Gaming Control Board (GCB), heralded the approval as a “significant milestone for our industry” in her LinkedIn announcement following the parliamentary session.
The forthcoming step involves the governor’s endorsement of the LOK, anticipated to occur within the next week, with the legislation taking effect simultaneously. This implementation aligns with the GCB’s target timeline for Q4 2024, despite earlier indications of potential delays due to an overwhelming surge in licensing applications, as highlighted by GCB managing director Cedric Pietersz in previous discussions with iGB.
During budget deliberations in December, Minister Silvania revealed that the GCB has received an extensive number of online gambling license applications, estimating that approximately 220 licenses have been issued to date. Projections suggest that around 600 gaming operators will secure authorization by the end of Q1 2025, following the finalization of the budget on December 13.
Objectives of the LOK
The LOK effectively dismantles the previous master license system, rendering existing licenses void once the new legislation is enacted. Consequently, all current license holders are required to reapply under this fresh regulatory structure.
A key goal of the LOK is to enhance Curaçao’s standing in the global market, moving away from its image as a haven for grey market operators. Minister of Finance Javier Silvania has described these reforms as a necessary “safety net” aimed at shielding the market from unlicensed gambling enterprises.
The new legislative framework introduces various application categories catering to B2B, B2C, and B2B2C operators. However, Pietersz previously indicated that many initial submissions have not met the high standards expected under the new guidelines. “We often encounter incomplete documentation during the clarification stage,” he stated. “As a result, numerous applications are returned, prolonging the overall processing time.”
Addressing Corruption Allegations: GCB’s Response
In November, the GCB addressed allegations concerning corruption, fraud, and money laundering within its licensing procedures. In a detailed communication, the GCB reaffirmed its commitment to maintaining integrity and transparency in the regulatory process.
The GCB emphasized its exclusive authority over the processing and issuance of licenses, stating, “The GCB holds the legal power to grant, amend, temporarily suspend, revoke, or deny licenses, and to impose conditions on those licenses as deemed necessary.” They firmly dismissed claims suggesting they lack the legal authority to grant licenses, underscoring the robustness of their regulatory framework.
This regulatory overhaul presents an opportunity for Curaçao to redefine its gambling ecosystem, fostering accountability and enhancing the operational standards of licensed operators. As the gaming landscape evolves, the successful implementation of the LOK could position Curaçao as a leader in compliant and transparent online gaming.
