Curacao moves one step closer to iGaming reform as reform package submitted to parliament
Curacao’s national gambling regulations (LOK, by its Dutch abbreviation) are at a critical juncture. A comprehensive gambling reform bill has been tabled for parliamentary approval and promises to transform the island's gambling industry, which has been highly fluid and controversial in the past.
Gambling regulator GCB has taken significant steps to implement LOK. In September, the company opened a license renewal portal to allow existing operators to transition to the new framework.
Submissions for License Renewals begin on November 1st, marking the official start of the process. The LOC’s decision could reinvigorate the industry, improve player protection and enhance Curaçao’s position as a leading gambling jurisdiction. Meanwhile, Treasury has issued a notice to existing licensees outlining key milestones in the transition to the LOK regime.
What’s next for Curacao
One of the key deadlines is March 31, 2024. At that time, existing sublicensees must register their sublicenses and apply for a direct license. Failure to comply with this deadline will result in loss of operating privileges after March 31.
From 31 March, the transition to the new framework will only apply to direct license holders under temporary licenses. Applications already in progress will continue to be processed to ensure a smooth transition for operators who have initiated the process.
Operators who wish to continue operating but have not applied for a direct license by March 31 will only be able to operate under their sublicense until the main license expires or the LOK decree comes into effect. They must then apply for a license under the revised legislation.
To further ease the transition, LOK requires licensees to use digital seals on their websites. These seals are issued by the GCB and can be authorized to applicants awaiting license approval. They provide players with clear and transparent information regarding the legality and compliance of gambling operators.
A key aspect of the LOK reform is the introduction of different fees for B2B and B2C licenses. Although the structure is broadly similar, the B2B license does not incur a monthly fee, unlike the B2C license, which includes an annual and monthly fee.
The application fee for a B2C license is N9,000 ($5,000) per person, plus a one-time due diligence fee of N250 to N500 ($137.38 to $274.75) per person. The cost depends on the individual's role within the company.
The B2C license has an annual fee of ANG 48,000 ($26,376) and a monthly fee of ANG 4,000 ($2,198). Operators must also pay an additional ANG 500 per domain per year, with no limit on the number of domains.
Curacao’s parliament has not said when it will complete its review of the reforms or what steps it might take.
Smooth transition
To support operators during the transition period, operators holding licenses under the current master license regime will be exempt from annual fees for the first year. The monthly fee will also be reduced to 4,000 ANG from the following year, replacing the current 7,000 ANG ($3,846.50).
Legislators and regulators designed fee structures to balance the need to generate revenue with maintaining a competitive gambling market. Furthermore, in line with previous government statements, they reflect the Government of Curaçao’s commitment to promoting responsible gambling practices and ensuring the effective enforcement of player protection measures.
LOK’s decision opens up huge potential for Curaçao and positions the island as a leading destination for responsible and regulated online gambling. By adopting LOK's reforms, Curaçao is likely to improve its reputation as a trustworthy and reputable gambling jurisdiction. This could ultimately have a significant impact on the legitimacy of operators seeking to enter new global markets.
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Source: www.casino.org
