The Gaming Control Board (GCB) of Curaçao has vehemently denied accusations of corruption and financial misconduct related to its gambling licensing reforms. These allegations, brought forward by opposition politician Luigi Faneyte, have stirred controversy over the process of granting licenses and the management of funds within the sector.
Refuting Allegations of Corruption and Mismanagement
On November 25, 2024, Luigi Faneyte, a prominent member of the Real Alternative Party, filed a report with the Attorney General’s office, accusing the GCB of issuing licenses without proper authority and causing financial losses through questionable practices. The allegations point to the lack of transparency in the licensing process, claiming that improper activities may have led to fraud and money laundering.
In a detailed response, the GCB rejected these claims outright. The board stated that it has held exclusive responsibility for issuing gambling licenses since 2020, when Curaçao’s Minister of Finance, Javier Silvania, officially delegated this power. According to the GCB, it follows a strict and transparent process, which includes evaluating the legitimacy of business plans, verifying documents, conducting due diligence on applicants, and reviewing websites for compliance.
“The allegation that we lack the legal authority to grant licenses is simply incorrect,” the GCB emphasized. The board further clarified that it operates through an online portal, enabling transparency and allowing applicants to track their applications in real time. This process is designed to ensure fairness and accountability at every step.
Financial Integrity and Proper Oversight
Faneyte’s allegations of financial mismanagement also led the GCB to defend its fee structure. The board confirmed that all licensing fees are deposited directly into a government-controlled bank account, with no room for diversion. The GCB reiterated that no funds have been misappropriated and that licenses are only issued once payments are confirmed.
To further counter these allegations, the GCB outlined its commitment to financial integrity. The licensing process, from the payment of fees to the issuance of licenses, is meticulously documented, ensuring complete transparency. It is a system designed to eliminate any possibility of embezzlement or fraud.
Despite these safeguards, Faneyte’s accusations have added fuel to a fire already burning over Curaçao’s gambling industry, which has faced increasing scrutiny. While the GCB maintains that its actions are above board, critics continue to question the effectiveness of the regulatory oversight in place.
Addressing Player Protections and Industry Concerns
One of the most significant issues raised by critics has been player protection, particularly following the bankruptcy of BC.Game, a Curaçao-licensed online gaming operator. The Foundation for the Representation of Victims of Online Gaming (SBGOK) filed a case against the operator for failing to pay out player winnings, prompting concerns about the GCB’s ability to regulate the industry effectively.
In its response, the GCB clarified that it does not directly manage player complaints. Instead, these are handled by the operators themselves, as outlined in their terms and conditions. However, the GCB reassured the public that it is taking steps to address such issues through the upcoming National Ordinance for Games of Chance (LOK). Under this new legislation, operators will be required to implement Alternative Dispute Resolution (ADR) mechanisms, which will ensure that player complaints are independently evaluated.
This new regulation is seen as a crucial step toward reinforcing the integrity of Curaçao’s online gaming sector and providing better protections for players. The introduction of ADR will enhance transparency and fairness, helping to resolve disputes without relying solely on operators’ internal processes.
Foreign Operators and Regulatory Enforcement
Another point of contention involves the GCB’s jurisdiction over Curaçao-licensed operators that operate internationally. While the GCB can enforce local laws and regulations, it has limited authority over operators based outside the island nation. To address this, the board relies on decisions from foreign authorities to guide its enforcement actions and ensure international compliance.
This limitation has raised concerns, particularly with critics pointing out that Curaçao-licensed operators have at times flouted local and international laws. The GCB, however, is firm in its stance that operators are responsible for adhering to the laws of the jurisdictions in which they operate, and it will take appropriate action based on foreign regulatory rulings.
Moving Toward Stronger Regulatory Standards
Looking ahead, the GCB is committed to further improving its licensing and regulatory framework. The board is working closely with international experts to roll out a more robust system that meets global standards. As part of this effort, the GCB plans to transition all current licensees to provisional licenses under the new LOK framework by the end of 2024.
This transition will allow the GCB to assess compliance with the new, stricter regulations and ensure that all operators are held to the highest standards of accountability and transparency. The move is expected to streamline the licensing process and offer better protection for both players and operators.
As part of its modernization efforts, the GCB is also exploring new technologies to enhance its oversight capabilities. This forward-thinking approach reflects the board’s ongoing commitment to improving Curaçao’s gambling industry while ensuring it remains a reliable and trusted jurisdiction for operators and players alike.
