Surge in gambling applications strains Curaçao licensing system

The Curaçao Gaming Control Board (GCB) is experiencing delays in processing gambling license applications due to a surge in demand, according to GCB managing director Cedric Pietersz.

Interest in entering Curaçao's gambling market has multiplied, with the regulator receiving 740 online gambling license applications during its first half window, which closed in April. Pietersz expects an additional 300 applications in the coming months as part of the latest licensing window that opened in July.

“We have to ramp up our internal processes and resources to be able to handle so many applications,” Pietersz told iGB. “We are handling about 10 applications a week but we are hoping to ramp up our capacity to 20 or 30 applications a week.”

Pietersz acknowledged potential delays as the regulator prepares new legislation. “From a regulatory standpoint, when you are transitioning a regime, you would like for it to be as short a period and effective as possible. But when you are dealing with a lot of parties it gets a little bit tricky," he added.

Curaçao's new regulatory framework, the National Ordinance for Games of Chance (LOK), established in September 2023, has contributed to the influx of applications. The new framework requires three forms: the online gaming application form, the personal history disclosure form, and the corporate and business information form. Current master licenses will expire on August 31 and will be abolished under the new regime, causing confusion among applicants and adding to delays.

“[Master license holders] all understand why we have to change. The GCB wants to be their partners in this process,” Pietersz added. “They have built a brand, they have built a reputation, but they should change the approach of their business.”

The GCB is now accepting applications from B2B, B2C, and B2B2C operators. However, the quality of applications has been suboptimal, with many being returned due to missing documents, further delaying the process.

Continued communication is a tool the GCB hopes will help speed up the licensing process. The regulator has maintained constant communication with current license holders to assist them in re-applying.

New regulations aim to improve Curaçao’s reputation as a haven for grey market operators. The new enforcement function will punish operators for not abiding by the rules. “It will take effort for the operators to adjust, but from the side of the GCB, we are also setting up an enforcement function, not exactly to punish operators, but we will if we have to,” Pietersz said.

Curaçao Minister of Finance Javier Silvania previously stated that the LOK would act as a “safety net” against unlicensed operators. The GCB is confident it can uphold regulations, leveraging its contacts with foreign regulators to address complaints and enforce compliance.

One example is Curaçao-licensed betting operator Bovada, which operated illegally in various US states before being blocked by Michigan and Colorado earlier this year.