Will New iGaming Regime Make Curacao Licenced Casinos Move Elsewhere?

Curacao is getting ready to adopt a new iGaming regime, which will come into effect by March next year. However, the radical move may force many licensed operators to move their operations elsewhere. According to available information, the companies are preparing backup plans, with many of them already choosing potential alternatives.

The possibility of introducing deposit thresholds and new KYC procedures has caused concerns, as they will increase costs. Curacao could even go out of business if the island‘s authorities proceed with these plans.

Work in Progress

The new iGaming framework is still in the world, with the first public consultation held in early August. However, back in July, the government confirmed its plans to introduce strict oversight of the island‘s online gambling industry. The model will include a supervisory regime resembling the one established by the Malta Gaming Authority.

The new regulatory body, the Curacao Gaming Authority (CGA), will oversee the country‘s industry and provide licenses for operators and suppliers.

It’s a significant change to the existing system. Currently, a couple of private companies hold master licenses, offering sub-licenses to other operators.

As mentioned, the government hopes the regime will be fully functional by March next year.

Pressure from the Netherlands

The change in the iGaming regime was the result of pressure from the Netherlands. The move aims to further develop online gambling in the country, making it a pillar of the local economy.

The Caribbean island depends heavily on tourism. However, the number of visitors dropped by 60% to 80% due to the pandemic, devasting the regional economies. Curacao was no exception. The Netherlands provided generous financial support to the island, part of the Dutch Caribbean, but requested an overhaul of the territory‘s online gambling legislation.

Curacao wants to make online gambling a significant economic factor and further diversify the country’s economy. Implementing stricter rules should further strengthen the industry.

According to initial plans, the new regulatory body will be able to issue and revoke gaming licenses. That way, it would make sure operators pay licensing fees and taxes in Curacao, creating extra income for the island.

Crypto Challenge

Expect a bumpy ride, as such an extensive overhaul comes with a fair share of obstacles. In this case, Curacao will introduce an increased level of responsible gaming and anti-money-laundering measures, which aren‘t so rigorous at the moment.

Many online gaming operators licensed in Curacao accept cryptocurrencies as a means of payment. The island plans to retain that possibility after the overhaul, which should help further develop this payment method.

The Central Bank of Curacao is fully capable of introducing crypto-specific regulations. Still, it’s also crucial for the regulator to make sure that crypto service providers are regulated in an accepted way.

In addition to online gambling, Curacao plans to revise its existing gaming regime. It includes national lottery and horseracing betting. The ultimate goal is to create a modern regime focusing on more aspects of the game.

All current sub-licenses will be turned into transitional permits, valid for twelve months.

Once the new regime comes into effect, operators will have to pay a €4,000 application fee and an annual license fee of €12,000. A regulatory fee of €250 per URL will be charged every month. Keep in mind these fees are still under consideration and may change by the time the new regime is adopted.

All licensed companies will go through strict anti-money-laundering checks.

Other Alternatives

In the meantime, the online gambling industry is waiting to discover more information about the upcoming changes in the nation’s regime.

According to last year’s data, published by Follow the Money, nearly 12,000 online gambling sites do business from Curacao. The investigative journalism platform stated that around 40% of the world’s unregulated gaming operates through the tiny Caribbean island.

With the upcoming changes and strict regulations, many companies will look for other options, featuring the new rules will be extremely harsh.