Curaçao approves sweeping gambling reforms amid licensing scandal

Curaçao has ushered in a new era for its gaming sector with the adoption of the National Regulation on Gambling (LOK). This law was passed by a 13-6 majority in Parliament and represents the most significant overhaul of the island’s gambling regulations in decades.

The reform process began in 2022 and was tied to mandates from the Dutch government requiring Curaçao to address long-standing problems in its gaming sector as part of its COVID-19 financial assistance agreements. While the exact timing of the law’s passage is still unclear, its passage signals the conclusion of years of deliberations and debates, according to Next.io.

The main aim of the new legislation is this Replace the outdated two-tier licensing systemwhich enabled sub-licensing practices among four main license holders with a more centralized regulatory framework. Under the new system, a revamped gambling authority will directly oversee online gambling licenses, ensuring greater accountability and oversight.

A controversial path to reform

The reform efforts come amid allegations of misconduct and licensing irregularities that have rocked the industry. Opposition politician and forensic financial investigator Luigi Faneyte has filed two complaints with the Public Prosecutor’s Office regarding corruption and mismanagement within the Curaçao Gaming Control Board (GCB) and other entities.

Faneyte’s complaints also extend to international authorities, including the Malta Gaming Authority, the FBI and the Czech Ministry of Justice, illustrating the far-reaching impact of his allegations. The evidence he presented includes a transcript of a recorded conversation that purports to reveal a conspiracy involving an online gambling operator attempting to evade legal responsibility.

Faneyte’s actions drew sharp criticism from Curaçao’s finance minister. Javier Silvaniawho rejected the allegations as unfounded. Silvania accused Faneyte of damaging the island’s reputation by leaking unconfirmed claims to international media. “They are only harming the island. They are based only on suspicion. That’s what I call gossip,” Silvania defended the integrity of the reform process and urged patience as legal investigations continue.

Challenges in implementation

While the passage of the LOK represents a significant advanceConcerns remain about the effectiveness of its provisions. Critics argue this Gaps in the legislation may limit its ability to fully address regulatory and compliance issues.

The reforms aim to strengthen Curaçao’s position as a regulated gambling jurisdiction, but questions remain as to how successfully the new framework will be implemented. The island has long been one of the largest offshore gambling centers. Licensing tens of thousands of operators worldwide. However, this volume came with lax oversight and reputational problems.

The introduction of stricter regulations is expected to help strengthen Curaçao’s credibility in the global gaming industry. However, the recent licensing scandal highlights the challenges the jurisdiction faces in restoring trust and ensuring transparency.

Industry reactions and next steps

Despite the controversy, industry stakeholders have welcomed the reforms as a positive step. Aideen Shorttan advisor to Curaçao’s Ministry of Finance, expressed optimism about the impact of the legislation. “The LOC has passed. It’s a great day for our industry,” Shortt said on LinkedIn, emphasizing the importance of the reforms to the island’s gaming future.

The success of these measures will depend on the effectiveness of the new gaming authority and its ability to enforce compliance across the industry. As the reforms take effect, Curaçao must find a balance between maintaining its position as a global gaming hub and implementing robust regulatory protections.