Have you ever placed a bet at an online casino? If you have, there is a strong likelihood that you’ve interacted with a Curaçao-licensed operator … and without even realising it. For decades, this small Caribbean island has been home to one of the world’s largest hubs for online gambling licenses and powers thousands of betting sites across the globe.
On December 17, 2024, Curaçao’s parliament approved the National Ordinance on Games of Chance (LOK) by a vote of 13-6. This new legislation stands to make a significant impact on how the jurisdiction handles online gambling, ushering in an almost complete overhaul of the system and a new era of governance.
For the average bettor, as well as the online gambling site operator, knowing what the LOK changes mean for the online gambling world is critically important, as the effects of the new legislation will likely have ripple effects for several years to come.
The Old System – and Why Reform Was Needed
To help us understand the impact of the new LOK legislation and the scale of the change, we need to go back in time and look at what came before it.
Since 1993, Curaçao’s online gambling industry has operated under the National Ordinance Offshore Games of Hazard (NOOGH), with the very first licenses being issued in 1996. The system was relatively – if not remarkably – simple: the government issued four “master licenses” to companies that could then ‘sublicense’ to thousands of operators worldwide.
Dispute resolution was laden with complexity, and if you had a problem with a particular operator, it was unlikely that the issue would be resolved through the official channels. The sublicensing system also made it difficult to know who was accountable for ensuring fair play and financial security.
But there was also the issue of reputation. As global standards for gambling regulation tightened, Curaçao’s ‘hands-off’ approach to the industry became even more apparent. This meant banks and other financial institutions grew increasingly uncertain about Curaçao-licensed operators, and the Dutch government also began to apply regulatory pressure.
The outbreak of COVID-19 and subsequent pandemic coincided with a major industry turning point. With the island looking for financial assistance from the Dutch government, the Netherlands tied financial relief funds to a variety of requirements, including one that forced the island to reconsider the regulatory framework in place for the gambling sector.
The LOK Framework: What Players and Operators Need to Know
That reform has resulted in the new LOK legislations as we now know them, and for players and operators who have become conditioned to gambling within the traditional Curaçao framework, the changes are pressing them to get educated and adapt to the new order.
1. Sublicenses Out, Direct Oversight In
The most significant change with the LOK legislation is eliminating the master license system. Under LOK, the last master license has now expired. Now, all operators must seek licenses from the newly established Curaçao Gaming Authority (CGA).
For players, you’ll now be able to verify whether a site or operator has taken the time to get licensed directly with the regulator, rather than through a third party; It will also guarantee consistency of operational standards across all Curacao licensed sites.
2. New License Types Will Be Tailored to Different Businesses
When the original gambling license framework was established, gambling was straightforward. Now, with the vast number of ways to play, licenses need to adjust to different business types to remain relevant and fit for purpose.
LOK introduces two distinct types of license categories:
● B2C (Business-to-Consumer): For operators that interact directly with players, such as online casinos, sportsbooks, and lottery sites.
● B2B (Business-to-Business): For suppliers like software providers and other companies that service gambling operators but don’t directly interact with players.
This new separation of license categories could and hopefully will create much clearer accountability. When players place a bet, they will know exactly what entity is responsible for ensuring that the play is fair and that all payments are secure.
3. LOK Brings New Player Protections and Operator Transparency
Maybe the most important update the LOK brings is a renewed focus on player protections. Within the LOK, there are new mandates that require much stricter consumer protections for licensees, such as:
● Transparent dispute resolution processes
● Detailed information about games, including the win probabilities and payout details
● Expanded player protections, especially for vulnerable players or those with a gambling addiction
● Mandatory certification
4. A New Economic Presence Requirement for Operators
LOK also requires all licensed gambling companies to establish a physical presence in Curaçao.
This new requirement means that after a period of time, companies will need to hire local staff, which could positively contribute to the Curaçao economy.
What Are the Costs and Regulatory Impacts of LOK?
For operators, LOK means that while licensing fees have changed, the overall compliance costs are higher:
● Application submission: €4,592 plus €150 per company representative check*
● License Fee (B2C): €24,490*
● Supervisory Fee (B2B/B2C): €22,960*
● Domain fees: €250 each*
● Certificate Application: €383*
*At the time of writing.
The new fees aren’t all – operators must also now adhere to much stricter requirements in their operations to remain compliant. This includes having four key positions (CEO, CFO, COO, or CTO), and operators must establish a dedicated AML/CFT compliance officer.
These new requirements will inevitably place pressure on smaller or less reputable operators to remain in the Curacao market, which was a highly intentional impact of the new LOK legislation.
As a player, you can likely expect a higher level of gameplay transparency and better protection for your deposits. Plus, with the new physical locations and personnel requirements, dispute resolution will likely improve across the board.
A New Era for Curaçao Gambling
These new reforms in Curaçao are just part of a growing trend of stricter gambling regulations in the online space. Many jurisdictions are starting to recognise that proper oversight and regulation benefits everyone involved – even if it does tighten the screws on operators who aren’t operating in their customer’s best interests.
For players, the best approach is to ‘stay informed’. Make sure that your preferred sites have updated their licensing information and seek out the new CGA license details on operator websites; equally, be wary of any sites that seem reluctant to update their operations to meet the new requirements.
For an industry that is built on the idea of calculated risk, these changes are a bet on the future – one that sees higher standards, greater ethical governance and better oversight as the way to create a more sustainable online gambling industry.
To learn more about how Quadrant Gaming can support your business, please contact us at info@quadrantgaming.im.
Sources:
● https://www.uniwide.com/articles/deoffshorisation-in-action-the-situation-with-curacao-online-casino-licences/
● https://next.io/news/regulation/curacao-passes-landmark-online-gambling-reforms/
● https://www.gamblinginsider.com/news/27799/curaao-gaming-legislation-passes-parliamentary-approval
● https://igamingbusiness.com/legal-compliance/licensing/curacao-approves-lok-gambling-licensing/
● https://www.flexi-news.com/post/curacao-new-online-gambling-law-sparks-debate-over-industry-reform
● https://www.casinoreviews.net/news/curacao-revamps-online-gambling-laws-in-landmark-reform/
