Curaçao to create new gambling regulator by March 2021
Island nation licensing hub commits to regulatory change under pressure from the Netherlands
Curaçao has agreed a timetable to create its first gambling regulator with a view to regulating the market from March 2021.
The tiny island nation, which forms part of the Dutch Caribbean, agreed the proposals as part of a third financial settlement package with the Dutch government.
Dutch authorities have been providing so-called “liquidity support” to Curaçao since April due to the coronavirus pandemic, as a lack of tourism has dented the island’s financial position. So far, two financial support packages (Landspakket) have been agreed, with a third package expected to provide support until the end of 2020.
However, the Dutch government has said the country must “become financially, economically and administratively resilient” to qualify for additional financial support and has added conditions to future loans.
Curaçao’s local economy is expected to shrink by as much as 30% following the pandemic.
“Economic, financial, social and institutional reforms are needed to make Curaçao resilient,” the agreement stated. “The situation in which Curaçao has now found itself no longer leaves room for further delay.”
The Landspakket agreement includes a timetable for the creation of a step-by-step plan for modernising and reforming the Curaçao gambling industry, which includes the creation of a new independent regulator for online gambling by March 2021.
Dutch authorities have said any plan must include a “realistic timeline with associated milestones”, with the new regulator taking licensing and enforcement responsibility by September 2021.
In what could prove an interesting challenge for the new regulator, the Landspakket also includes a condition to ensure that all Curaçao-licensed operators “act in accordance with the laws and regulations of the countries in which they operate directly”.
The island has a chequered history with gambling regulation as licences are easily obtained without necessarily meeting the stringent requirements of international regulated markets, including the Dutch market, which is primed to launch its own regulatory regime next year.
Finally, the agreement stipulates the new regulatory entity should collect licence fees and taxes, and develop mechanisms to ensure these receipts are paid to the Curaçao government.
In December 2018, the Curaçao government stated its intention to give responsibility for online gambling regulation to the Curaçao Gaming Control Board (GCB) which regulates land-based gambling on Curaçao.
As part of this mandate, the GCB was appointed supervisor for anti-money laundering and counter-terrorism financing for the entire gambling sector, both online and land based in February 2019.