A Curacao gaming license has long been a popular choice for operators at all levels of the online gambling industry. However, recent changes to the regulatory framework necessitate careful consideration before obtaining or renewing this license. In this guide, we provide you with all the essential details to help you understand the current state of the Curacao gaming license, its possibilities, and the application process.
Curacao Essentials
As of 2024, the Curacao licensing structure has undergone some changes. Here are the salient points:
- Simplified Licensing Structure: The old master and sub-license system has been replaced with two types of licenses: B2B and B2C. These cover all major online gambling activities.
- Centralised Authority: The newly established Curacao Gaming Control Board (CGCB) now oversees all licensing and compliance matters.
- Easy Application Process: Applicants can submit their applications through a convenient online portal guided by Fast Offshore.
- One-Year Validity: Licenses are valid for one year, and operators must be vigilant about potential revocations or legislative changes.
- Scope of License: The license authorises the provision of remote gambling services.
A Brief Overview and History
Curacao, a small Caribbean island and part of the Kingdom of the Netherlands, has become a powerhouse in online gambling and various other business sectors. Known for its favourable tax conditions and developed business environment, Curacao is a preferred destination for offshore operations.
The Curacao gaming license dates back to 1993 when the National Offshore Gambling Decree was issued, initiating gambling regulation on the island. Licenses were first issued three years later, marking Curacao’s entry into the online gambling industry.
Before 2023, the licensing framework included two types of licenses: master licenses and sub-licenses. The master license, valid for five years, was issued by the Ministry of Justice of Curacao and allowed holders to issue sub-licenses to others.
In 2023, the licensing system underwent a significant overhaul. The master and sub-license structure was abolished, and a new licensing format was introduced under the governance of the Curacao Gaming Authority (CGA). This change, driven by proposals from the Netherlands, aimed to establish a more cohesive regulatory framework and improve the jurisdiction’s reputation.
State of Curacao Gaming License in 2024
The changes implemented in 2023 and being rolled out in 2024 have brought about a new era for the Curacao gaming license. The simplified licensing structure now offers two main types of licenses: B2B licenses for service providers catering to businesses and B2C licenses for those interacting directly with players.
A key focus of the new regulatory framework is the strengthening of terms, conditions, and operational requirements. This includes:
- Responsible Gambling: Operators must implement robust measures to promote responsible gambling.
- Financial Stability: Higher standards for financial stability are now required.
- Local Presence: Operators must have a local office in Curacao.
- Player Protection and Transparency: Enhanced player protection measures and increased transparency are now mandatory.
Previously known for its affordable licensing fees, Curacao has increased the projected annual and licensing fees. While still affordable and less than some other jurisdictions, it is higher than it was before.
Curacao Updates Timeline
17 July 2023: The Ministry of Finance announced plans for Curacao’s new licensing regime as the National Ordinance for Games of Chance (LOK) neared implementation. Master license holders were given an additional year for a smooth transition.
15 November 2023: The application process for the National Ordinance on Offshore Games of Hazard (NOOGH) master license began, marking a new era in Curacao’s iGaming regulation.
April 2024: The LOK legislative framework went live, and entities with NOOGH sub-licenses should have begun transitioning within a nine-month window, while other operators had a three-month period to adapt.
September 2024: Deadline for LOK exemptions, signalling the end of the master license system in Curacao. All gambling operations must comply with the new LOK regulations by this date.
Industry Impact and Expert Opinions
The impact of these changes on the industry and Curacao as a whole is still unfolding. Opinions are divided: some experts believe that the new regulations might affect Curacao’s popularity, while others think it will enhance the jurisdiction’s credibility and appeal over time.
In a survey conducted to gauge industry sentiment, 60% of experts believe the changes might somewhat affect Curacao’s popularity, while 30% see no impact on its established appeal. A small fraction, about 4%, even foresee an increase in credibility and popularity as the new regulations take effect.
Why Consider a Curacao Gaming License?
Despite the recent tightening of regulations, the Curacao gaming license still offers several advantages that make it an attractive option for operators:
1. Global Recognition
The Curacao gaming license is one of the most visible and sought-after international licenses, thanks to its high market penetration. The license acts as a seal of approval, building trust with both players and partners. The recent changes to the regulatory framework are expected to further enhance this recognition.
2. Broad Market Coverage
The Curacao gaming license operates under the principle that “what is not explicitly prohibited is permitted,” allowing operators to target a wide range of markets.
3. Cryptocurrency-Friendly
With the rise of cryptocurrencies, the Curacao gaming license accommodates operators looking to tap into this growing market. The license strikes a balance between certified gaming operations and the world of crypto transactions, offering operators flexibility and access to a motivated, crypto-literate user base.
4. Comprehensive Coverage
The Curacao gaming license allows operators to offer a wide range of gambling activities, from slots and lotteries to live games and bingo, under one umbrella license. This eliminates the need for separate approvals for different types of gambling activities, making it easier for operators to experiment and scale their businesses.
Application Process
The application process for a Curacao gaming license has been streamlined, but it remains thorough. Operators must provide all required data upfront to avoid unnecessary expenses and delays. The process involves several key steps:
- Establishing a Local Presence: Operators must have a registered company and a local representative in Curacao.
- Submitting Required Documentation: This includes notarised passport copies, a clean criminal record certificate, address verification, and a CV or resume for key executives.
- Technical and Compliance Audits: Operators must undergo a thorough technical audit of their gaming systems, including software, and implement Anti-Money Laundering (AML) measures.
- Filing Online Applications: The application is submitted through an online portal, with the review process taking approximately two months.
Fees and Taxes
Under the new regulatory framework, the cost of obtaining and maintaining a Curacao gaming license has increased. The application fee, due diligence fee, and annual fee have all been revised upwards. Operators must also account for additional costs, such as setting up an office in Curacao and obtaining necessary certifications.
Final Thoughts
In today’s iGaming industry, obtaining a license is essential for building trust and ensuring compliance. The Curacao gaming license, with its long-standing reputation and recent regulatory updates, remains a viable option for operators looking to establish or expand their presence in the global market.
The ongoing reforms in Curacao are set to strengthen the jurisdiction’s legal framework, making it an attractive destination for serious operators. For those considering acquiring or renewing a Curacao gaming license, staying informed about the latest developments and maintaining compliance with the new regulations will be key to success. The best way to do this is by working with Fast Offshore. We can update you on all Curacao related news, provide in-depth advice, and help you with all matters related to getting an iGaming license in Curacao.