Flood of Curaçao Gaming License Applications Triggers Delays
After the Curaçao Gaming Control Board (GCB) announced the reopening of its online portal for business-to-consumer and business-to-business license applications on July 15, operators’ interest in penetrating the popular gambling market has gone through the roof.
According to information from the GCB’s managing director, Cedric Pietersz, the regulator is currently looking for ways to improve the licensing processes to successfully comply with the increased demand.
“We Have to Ramp Up Our Internal Processes”
In an interview for iGB last month, the MD revealed the regulator had received a total of 740 online gambling applications during the H1 application window that was shut down in April.
Pietersz explained the regulator was anticipating an extra 300 applications to reach them in the upcoming two months, as a result of their decision to open their latest licensing window last month.
Accordingly, the MD admitted the board that regulates the Curaçao land-based casino industry including lotteries, charity bingo, and charity bon ku ne along with the online gaming industry needs to bring improvements to its current infrastructure.
This will be deemed mandatory if the regulator wishes to meet its eight-week licensing deadline under the fresh regulatory framework.
The MD explained the board has to “ramp up” the current “internal processes and resources to be able to handle so many applications.”
For the time being, the GCB handles around 10 applications a week with the hope of increasing the capacity to 20 or 30 applications.
Delays Caused by the New Framework
Delays in the overall process also exist because the regulator is still settling into the new framework, the National Ordinance for Games of Chance, which was initially established in September 2023 and is expected to be completely implemented in the fourth quarter.
While the transition to a regime was supposed to be “as short a period and effective as possible”, when dealing with a lot of parties, things tend to get “a little bit tricky,” as further explained by the MD.
The large number of applicants follows the fresh licensing regime as well as the upgraded, nine-page guideline on the way operators need to apply and what will be covered by the new gaming licenses.
The fact that current master licenses will expire and be abolished on August 31 under the new regime has attracted confusion among applicants, adding more to the delays.
Pietersz also argued many of the applications they received were not of “optimal” quality, with missing documents as one of the culprits.
The GCB expects ongoing communication to speed up the procedure while the new enforcement function meant to “punish” operators who are not licensed should considerably improve the country’s reputation as a haven for gray market operators.
The GCB has the power to escalate a situation and revoke the license of unlicensed operators.
Phil Hellmuth Divests RSI Shares Amid Affiliate Program Controversy
Phil Hellmuth, a celebrated figure in the poker world, recently announced that he has sold his entire stake in Rush Street Interactive (RSI). This decision comes on the heels of the company’s controversial move to discontinue its affiliate program across multiple states, a move that has stirred discontent within the gaming community.
Phil Hellmuth Sells RSI Shares, Citing Overvalued Market Despite Confidence in Company
Hellmuth, renowned for his 17 World Series of Poker (WSOP) bracelets, shared his decision via a post on X (formerly Twitter). He emphasized that his actions were not a piece of investment advice. Hellmuth cited concerns over broader economic conditions and the current market valuations as his primary reasons for the sale.
Hellmuth mentioned that he had sold all his 165,000 shares in RSI at $10 each. Despite maintaining faith in RSI, he expressed that he believed the S&P 500 appeared overvalued.
Hellmuth initially invested $300,000 in dMY Technology Group Inc., a special purpose acquisition company (SPAC) that merged with RSI in 2020, allowing the gaming company to go public. His sale at $10 per share translated to a substantial $1.65 million, marking a significant return on his investment.
While Hellmuth’s exit from RSI yielded impressive returns, some speculate he may have left money on the table. RSI has been subject to takeover rumors, which could potentially drive the stock price higher. Additionally, RSI’s financial performance has been robust, with significant increases in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA).
RSI Reports Strong Q1 2024 with Revenue Up 34% and Net Loss Reduced to $2.2M
RSI reported significant Q1 2024 financial improvements, including a 34% increase in revenue to $217 million and a reduction in net loss from $24.5 million to $2.2 million year-on-year. Adjusted EBITDA rose to $17.1 million from a loss of $8.7 million.
Advertising expenses decreased, and monthly active users grew by 20% in the US and Canada, and by 72% in Latin America. CEO Richard Schwartz expressed satisfaction with these record results, highlighting the company’s dedication to product quality and customer experience. RSI also announced plans to expand into new markets and continue developing proprietary content.
Additionally, RSI’s decision to end its affiliate program also contributed to Hellmuth’s divestment timing. Affiliates in states such as Arizona, Colorado, Illinois, Indiana, Louisiana, Maryland, Ohio, and Virginia received notifications that the program would cease on August 31. Affiliates were instructed to remove all RSI advertisements and tracking links by this date, though no explanation was provided for the termination.
