The gambling sector in Curaçao is experiencing an unprecedented spike in interest, as the Gaming Control Board (GCB) grapples with a flood of new license applications. Cedric Pietersz, managing director of the GCB, has detailed the challenges and strategic changes the regulator is undertaking to manage this influx effectively.
A Surge in Applications
In the first half of 2024, Curaçao’s GCB was inundated with 740 applications for online gambling licenses. This rush is expected to continue, with an additional 300 applications anticipated as the latest licensing window, which opened in July, progresses. The sheer volume of applications has underscored the need for the GCB to enhance its infrastructure and streamline its licensing processes to meet the new eight-week deadline established under the revamped regulatory framework.
Pietersz has acknowledged that the GCB must significantly ramp up its internal processes and resources to handle the increased workload. Currently, the GCB processes about 10 applications per week but aims to escalate this number to 20 or 30 applications weekly. This increase is crucial for keeping up with the rising demand and maintaining efficient operations.
Despite these efforts, Pietersz pointed out that the transition to the new licensing regime has been challenging. The complexity of dealing with numerous applications and the need to balance various regulatory goals have contributed to delays. He emphasized that both the government and the GCB had hoped for a quicker process, but the realities of managing such a significant change have led to extended timelines.
The surge in applications coincides with the implementation of a new regulatory framework, the National Ordinance for Games of Chance (LOK), which was introduced in September 2023. The LOK framework, set to be fully operational by the fourth quarter of this year, replaces the existing master licenses, which will expire on August 31. This transition has created confusion among applicants and added to the regulatory backlog.
Under the new framework, an application is considered complete if it includes three specific forms: the online gaming application form, the personal history disclosure form, and the corporate and business information form. The intention behind this streamlined approach is to clarify requirements and expedite the processing of applications. However, the shift has introduced new complexities, particularly for those accustomed to the previous system.
Addressing Quality and Efficiency
One of the challenges the GCB faces is the quality of the applications it receives. Pietersz noted that many submissions are incomplete or contain missing documents, which leads to delays in processing. To address this issue, the GCB is focusing on improving the quality of applications and is working to provide better guidance to applicants.
The GCB has also been proactive in maintaining open communication with current license holders to facilitate the re-application process. By offering support and clarifying requirements, the regulator aims to help operators navigate the new system more effectively and reduce the time required for application processing.
The new regulations are designed to enhance Curaçao’s reputation by addressing issues related to unlicensed and grey market operators. Curaçao’s Minister of Justice, Javier Silvania, has emphasized that the updated framework will act as a safeguard against operators that do not comply with legal standards.
Pietersz expressed confidence that the GCB’s new enforcement function will play a key role in upholding regulatory standards. This function is intended not only to ensure compliance but also to impose penalties on operators who violate the rules. The GCB is establishing strong relationships with foreign regulators to address complaints and enforce necessary corrections. In cases where operators fail to comply, the GCB has the authority to escalate matters, including the possibility of revoking licenses.
A notable example of the enforcement function in action is the case of the Curaçao-licensed operator Bovada. Bovada faced legal challenges in various U.S. states and was ultimately blocked by Michigan and Colorado earlier this year. This case illustrates the GCB’s commitment to maintaining regulatory integrity and ensuring that operators adhere to legal requirements.
Source:
''Influx of gaming applications causes licensing delays in Curaçao, says regulator'', igamingbusiness.com, August 01, 2024.
