Curaçao, a Caribbean island nation and a constituent country of the Kingdom of the Netherlands, has launched a new digital seal for its online gaming operators. The seal is part of the island’s new licensing regime, which aims to improve the transparency and regulation of its gambling industry.
What is the digital seal and how does it work?
The digital seal is a unique token that will be issued by the Curaçao Gaming Control Board (GCB) to each operator that holds a license under the new framework. The seal will be integrated into the DNS of the operator’s website, allowing players and authorities to verify the validity and status of the license.
The seal will also display information such as the license number, the date of issue, the expiration date, and the domains covered by the license. The seal will be visible on the website’s homepage and footer, as well as on the GCB’s portal.
The digital seal is expected to enhance the trust and credibility of the Curaçao online gaming market, as well as to prevent fraud and abuse. The seal will also help the GCB to monitor and enforce the compliance of the operators with the new regulations, which include provisions on player protection, anti-money laundering, responsible gaming, and security.
What are the benefits of the new licensing regime?
The new licensing regime is the result of the National Ordinance for Games of Chance (LOK), which was proposed by the Curaçao government in 2020, following a request from the Netherlands government. The LOK aims to reform the island’s gambling legislation, which dates back to 1993 and is considered outdated and inadequate.
The current licensing process requires operators to obtain a sub-license from one of the four existing master license holders, which have the authority to issue and regulate sub-licenses. However, this system has been criticized for its lack of transparency, accountability, and oversight.
The new licensing regime will phase out the master-sub-license system and introduce a direct licensing system, where the GCB will issue licenses directly to operators. The new licenses will have enhanced obligations and standards, aligned with international best practices and requirements.
The new licensing regime will also create a level playing field for all operators, as well as a more attractive and competitive environment for the Curaçao online gaming industry. The regime will also strengthen the island’s reputation and relationship with other jurisdictions, especially the Netherlands and the European Union.
What are the implications for the existing license holders?
The new licensing regime will come into effect on September 1, 2023, but the LOK has yet to be submitted to the parliament for approval. To ensure a smooth and orderly transition, the government has extended all master licenses for an additional year, until August 31, 2024.
During this period, the existing master license holders will still be able to issue sub-licenses under the current legislation, but they will have to comply with the new digital seal policy. The sub-license holders will also have to apply for a new license within 90 days after the LOK comes into force, regardless of the remaining term of their master license.
The GCB will start issuing new licenses under the current legislation from September 1, 2023, and these licenses will automatically convert to LOK licenses once the LOK is implemented. The GCB will also provide guidance and support to the operators during the application process, which will involve completing three forms: an online gaming application, a personal declaration, and corporate disclosures.
The government has not yet announced the fee structure of the new licensing regime, but it is expected to be reasonable and competitive. The government has also assured that no operators will experience interruptions or disruptions to their business during the transition period.
