Curaçao Gaming’s LOK 2024 Reforms Bring in ADR Policy

The Curaçao Gaming Control Board (or, Curaçao Gaming Authority) has introduced the much-needed reforms in its online gaming industry with the implementation of National Ordinance on Games of Chance 2024 – Landsverordening op de Kansspelen (LOK).

The new regulation came into effect December 24, 2024, and has introduced sweeping changes to Curaçao’s iGaming framework. A series of regulatory reforms aim to bring Curaçao’s gaming legislation on par with other major regulatory bodies, such as the MGA.

The Curaçao Gaming Authority (CGA) is the country’s sole regulatory body. It grants gaming licences, regulates online and offline gambling operators, and enforces anti-money laundering (AML) and responsible gaming practices.

The LOK regulations bring stricter compliance requirements, financial transparency, responsible gaming measures, and enhanced player protection measures.

Curaçao Gaming LOK’s Objectives

• Boosting Curaçao’s international reputation as a reliable gambling jurisdiction
• Preventing criminal and fraudulent activities
• Offer a safe and secure gambling environment to players.

LOK’s Mandatory Alternative Dispute Resolution (ADR)

Perhaps, the most important initiative coming out of LOK policy, is the introduction of an Alternative Dispute Resolution (ADR) system.

It was one of the major gripes of international punters playing in Curaçao-licensed online casinos, wherein players had very limited options in case of disputes arising with the operators.

An independent ADR system will ensure fair and efficient management of disputes between gaming operators/casinos and players, and will try to settle complaints without involving a court of law.

Below are the key points of Curaçao’s ADR Policy:

1. Independent ADR Providers: The dispute resolution providers will be separate, independent bodies from the operators/gaming providers. They’ll be approved by the Curaçao Gaming Authority (CGA), and must be based in Curaçao.
2. Enhanced Player Protection: The ADR policy’s major focus is player protection by providing a transparent, impartial, and efficient process for resolving complaints. This includes timely response to disputes and setting up of well-defined responsible gambling measures by the casinos.
3. Compliance: The CGA will oversee the ADR process, and the outcome will be legally binding on the operator. The ADR provider must submit detailed quarterly reports to the CGA.

How will LOK affect players and operators?

The National Ordinance on Games of Chance (LOK) 2024 is a major system overhaul in Curaçao’s gaming landscape, and has wide-ranging implications for both players and operators:

For Players:

1. Player Protection: The LOK brings sweeping measures to protect players. Curaçao-licensed casinos will implement specific responsible gaming measures, and need to undergo regular audits to protect players.
2. Complaints Resolution: With the introduction of alternative dispute resolution (ADR) policy, players will have access to a transparent, fair, and efficient process for resolving disputes with casinos.
3. Strict Standards and Security: The new regulations put a lot of emphasis on the overall security, financial stability, and transparency of the operator, thus providing a reliable and safer gaming environment.

For Casinos:

1. Revised Licensing Model: The older ‘Master Licence’ and ‘Sub-Licensing System’ has been replaced with a direct licensing model. This requires the operators/game providers to apply either for a B2B or B2C licence, as applicable.
2. Compliance and Transparency: Operators must meet stricter compliance requirements, responsible gambling policies, and financial transparency.
3. Physical Presence: Casinos must be incorporated and have a physical office in Curaçao.
4. Fees and Charges: As expected, the new gaming framework will add various additional fees. The application fee of a Curaçao gambling licence (B2C & B2B licence) now stands at €4,592 each, while the annual B2C licensing fees comes to €24,490.
5. Audits and Inspections: There will be regular mandatory audits, inspections, and review of financial records of all licensees. This will ensure compliance with the new regulations and prevent money laundering and fraud.

What impact does this have on current Curaçao casino operators?

Implementation of Curaçao’s National Ordinance on Games of Chance (LOK) has far-reaching consequences for existing gaming operators.

Curaçao’s new regulations bring in stricter compliance requirements, a new licensing regime, greater financial transparency, new responsible gaming measures, and increased accountability on the casinos. The LOK also makes it compulsory for the gaming operators to be incorporated and physically established in Curaçao. Moreover, the company must be managed by at least one Curaçao resident, and comply with local regulations.

To ease existing licence holders into the new framework, the CGA is granting them a provisional licence for six-month, ending on June 24th, 2025.

Here are the key takeaways:

1. Transition Period: Existing licence holders must switch over to the new framework within the provisional six-month compliance period, extendable by another six months.
2. New Licence: The casinos need to obtain a new gambling licence issued by the Curaçao Gaming Authority (CGA).
3. Compliance: Operators will need to comply with additional regulations, including anti-money laundering (AML) and the prevention of gambling by minors. They must also formulate and implement responsible gambling policies.
4. Audits and Inspections: Gaming companies will be subject to regular audits and inspections by the CGA. Non-compliance may lead to sanctions, fines, and/or licence termination.
5. Local Presence: Operators must be registered and operational in Curaçao, with at least one Curaçao resident as an important staff member.
6. Increased Costs: The many changes in licensing, compliance, and other regulatory requirements means there will be a substantial increase in costs for the operators and gaming providers.

A Curaçao gaming licence has been the preferred option for gambling operators due to simple application process, tolerant laws, and lower taxes. The new framework aims to bring in transparency, compliance, and a safer gaming environment in Curaçao.

While we are already observing some offshore operators moving away from the new Curacao licensing regime (the Anjouan Gaming Licence seems to be a popular alternative), the coming time will tell a clearer picture of how the new changes are received by iGaming companies.