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WILLEMSTAD - Due to the impact of diminished economic activity and the lockdowns, Curaçao has found itself in financial troubles. Under the deal made with The Netherlands that will save its stability, it is forced to introduce changes to the Curacao license that will affect online gambling worldwide.

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There are three major demands from the Netherlands that will make the Curacao license be more alike to what is expected from countries in the EU:

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1. Increased pricing for master licenses

2. Prevention of player targeting

3. Increased oversight and inspection

This will make the license somewhat harder to obtain, especially for new operators in developing nations that have been popping out recently. But, this will also make the license itself more valuable.

Part of the Economic Assistance Package

For many, Curacao is considered to be a tax haven and benefiting from the fact that it is inside the Kingdom of The Netherlands, which is in the EU, but not itself being under EU restrictions and laws.

Not to mention that it is also a very picturesque Caribbean island that has the same standard as the mainland but much fewer gloomy days than Amsterdam or The Hague.

But, it is also reliant on the financial sector, tourism, and in good part oil refinement, all of which have halted to a degree in 2020. This forced the island to ask for assistance from the Netherlands.

This assistance is fairly lax and isn’t infringing on the territory’s autonomy. But, it does force some laws to coincide with EU standards that are in force in the Netherlands.

These rules include restrictions in banking, gambling, and service provision that can be seen as predatory. And while they will restrict business a bit, they aim to place more trust in Curacao-based companies.

Affecting other local markets

The change in rules will affect local markets globally, especially those that are connected with the island in the financial and online gambling sector.

Australia, which has the biggest gamblers per capita in the world, enjoys a lot of online gambling that is secured with the license from Curacao.

Similarly, Spain and the mainland Netherlands will be affected. Spain has a mix of gambling operators and financial services.

The Netherlands is not as impacted by online gambling as they already enforce a lot of these rules for local players. But, the financial sector in the country is looking down on this deal.

New independent regulatory body

The first demand from the Netherlands inside the package is the formation of a new and proactive regulatory body that will not only issue the new licenses but also supervise that operators are following the rules stated under them.

Curacao is not in the Eurozone and uses the Antillean Guilder. But, the price of the new master license will be increased to ANG240.000, which is about $134.000 or 113 thousand Euros. This is a steep increase from the current $35.000 which operators are expected to pay.

But, the possibility of losing the license will force all operators to follow all rules and abide by higher gambling standards, making the license itself more valuable.

Additionally, there will be no possibility of underhanded 3rd party license acquisition by buying off a company with an existing permit, as breaking any rules will have it revoked.

Slightly stricter acquisition

Operators that want a Curacao license will now need to prove that they are financially capable of running an honest gambling business and paying out their jackpots and major prizes without delays.

Also, they will need to follow the EU standards that regulate privacy information by their customers. But, as most good operators were already doing this to gain access to European markets, such a change shouldn’t create a major impact.

Stop player targeting

Player targeting where large spenders are pushed to spend even more is forbidden under EU gambling regulation. Now, all holders of the Curacao license will need to have proactive tools that will prevent people from overspending.

Additionally, and changes to the player’s IP address and behavior will prong investigation to prevent any chance of data or identity theft.

Increase oversight

Unlike before, the new Curacao agency will assume a more ‘hands-on’ approach to the license holders. Regular testing, inspections, and information requests will be made by the institution to ensure that everyone is following the new rules.

Looking more like Malta

Many have considered Curacao a ‘second-grade’ license compared to one provided by the Malta Gaming Commission because the European island-nation has been under EU laws since they were made.

But, with these deals in place, it is probable that the new rules will make the Curacao license more valuable and more alike to that from Malta. This will make the holders more trustworthy and will reassure the players that they are protected when gambling online.

2005

Alderney Gambling Control Commission

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