With the passage of the "National Gambling Regulation" (LOK), the gambling industry in Curaçao has entered a new era. The bill was passed in the parliament by a majority of 13 to 6, marking the most significant reform in the island's gambling regulations in decades.
The reform process began in 2022, related to the authorization from the Dutch government, which required Curaçao to address long-standing issues in its gaming industry as part of its COVID-19 financial relief agreement. Although the specific time of the bill's passage is not yet clear, according to Next.io, the approval of the bill marks the end of years of deliberation and debate.
The main goal of the new legislation is to replace the outdated two-tier licensing system with a more centralized regulatory framework, which allows sub-licensing practices under four main license holders. Under the new system, the reorganized Gaming Control Board will directly oversee online gambling licenses, ensuring greater accountability and supervision.
A Controversial Path to Reform
The reform efforts come at a time when the industry has been shaken by frequent allegations of misconduct and licensing violations. Opposition politician and forensic financial investigator Dr. Luigi Faneyte has filed two complaints with the prosecutor's office, accusing the Curaçao Gaming Control Board (GCB) and other entities of corruption and mismanagement.
Faneyte's complaints also involve international institutions, including the Malta Gaming Authority, the U.S. Federal Bureau of Investigation, and the Czech Ministry of Justice, indicating the far-reaching impact of his allegations. The evidence he provided includes a recorded conversation, which allegedly reveals a conspiracy involving online gambling operators attempting to evade legal responsibilities.
Faneyte's actions have been harshly criticized by Curaçao's Finance Minister Javier Silvania, who dismissed these allegations as baseless. Silvania accused Faneyte of spreading unverified allegations to international media, damaging the island's reputation. "You are only hurting the island. You are just based on suspicion. That's what I call rumors," Silvania said, defending the integrity of the reform process and urging patience for the legal investigations to proceed.
Challenges in Implementation
Although the passage of the "Land Expropriation Law" represents an important step forward, doubts remain about the effectiveness of its provisions. Critics believe that loopholes in the legislation may limit its ability to comprehensively address oversight and compliance issues.
The reform aims to strengthen Curaçao's position as a regulated gambling jurisdiction, but questions remain about how successfully the new framework will be implemented. For a long time, the island has been one of the largest offshore gambling centers, issuing licenses to tens of thousands of operators worldwide. However, such a scale of gambling industry also comes with lax regulation and damaged reputation.
Stricter regulatory measures are expected to help enhance Curaçao's reputation in the global gambling industry. However, recent licensing scandals highlight the challenges this jurisdiction faces in restoring trust and ensuring transparency.
Industry Reaction and Next Steps
Despite the controversies, industry stakeholders welcome the reform, seeing it as a positive move. Curaçao Finance Ministry advisor Aideen Shortt expressed optimism about the impact of the legislation on LinkedIn, stating: "LOK has passed. It's a great day for our industry." He emphasized the importance of the reform for the future of the island's gambling industry.
The success of these measures will depend on the effectiveness of the new Gaming Control Board and its ability to enforce compliance across the industry. As the reforms unfold, Curaçao needs to balance maintaining its status as a global gambling hub with implementing strong regulatory safeguards.
