Curaçao rolls out dispute resolution consultation

The Curaçao Gaming Authority (CGA) is actively seeking input from industry stakeholders regarding its newly proposed Alternative Dispute Resolution (ADR) policy. This public consultation period will remain open until March 8. This initiative stems from the recent LOK gambling legislation, which mandates licensed operators in Curaçao to offer ADR services to their players. The goal is to mitigate disputes and prevent these issues from escalating to formal court proceedings.

Overview of the ADR Policy

Published on February 24, the CGA’s consultation document outlines the essential elements of the ADR policy. According to this new framework:

Independent ADR Providers: The ADR service providers must operate as distinct entities from the operators they serve. Their primary role is to deliver independent and impartial assistance to players encountering unresolved complaints that customer service could not address.
Case Handling Procedures: Once an issue is filed, these ADR providers, accredited by the CGA, will assess whether the situation necessitates mediation or adjudication. They will facilitate communication between the parties involved and collect all pertinent information related to the dispute.
Limitations on Investigative Power: It is important to note that ADR entities will not possess the authority to conduct comprehensive investigations beyond the evidence submitted by the parties. In instances where sensitive information is discovered, it is the responsibility of the ADR divisions to relay relevant findings to the CGA, potentially highlighting broader industry issues.

ADR Expertise Requirements

To ensure effectiveness and credibility, the CGA has established specific expertise requirements for ADR entities:

Operational Standards: Each ADR division must maintain a standalone website, accessible to players outside the operator’s ecosystem. Furthermore, it must be located within Curaçao.
Staff Qualifications: Teams must include at least one qualified lawyer along with a minimum of three experienced staff members, all of whom should have a solid background in the gambling industry.

Applications for ADR provider approvals are currently being accepted by the CGA, with a review period expected to last approximately six weeks.

Catalyst for Change: High-Profile Player Disputes

The inception of the ADR policy was catalyzed by a significant player dispute involving the Curaçao-licensed operator BC Game, which entered bankruptcy proceedings following claims made by a group of players asserting they were owed substantial winnings. This case, which originated under the older master license framework, drew considerable public and political scrutiny.

The bankruptcy of BC Game and its successor raised allegations of corruption and malpractice within the CGA’s licensing framework, as voiced by opposition politician Luigi Faneyte. In response, the CGA defended its practices and committed to implementing an independent ADR policy to streamline the resolution of player disputes outside the court system. This policy will encompass mediation, arbitration, and negotiation strategies.

In December, the framework for the LOK was officially approved by Parliament, introducing comprehensive gambling regulations designed to elevate Curaçao’s standing in the global marketplace and curtail activities associated with unlicensed operators. Minister of Finance Javier Silvania has characterized these reforms as a crucial "safety net" to protect against fraudulent gambling enterprises.

Conclusion

The introduction of the ADR policy signifies a transformative step forward for the Curaçao gaming industry, underscoring a commitment to enhancing player protection and fostering a sustainable regulatory environment. The CGA’s engagement with industry operators during this consultation period is crucial for refining the policy to better serve all stakeholders involved. By creating a more robust dispute resolution framework, Curaçao aims to position itself as a more reliable jurisdiction for both operators and players alike.