The Evolution of Gambling Legislation in Curaçao: From Early Days to Modern Reforms

In this article, we explore the trajectory of gambling legislation in Curaçao, tracing its origins and examining the latest regulatory changes shaping the future of the island's gaming industry. As one of the most well-established hubs for online gaming licenses globally, Curaçao has long attracted gambling operators with its straightforward requirements and operator-friendly conditions. But as we look into the past and the recent reforms, we ask: is the path to licensing still as accessible as it once was?

The Beginnings: 1990s

The groundwork for Curaçao’s gambling industry was laid in the mid-1990s when Curaçao became part of the autonomous Kingdom of the Netherlands. With this status came the potential to create one of the world’s earliest regulated jurisdictions for gambling, leading Curaçao to implement foundational legislation for gambling oversight.

In 1996, the National Offshore Gambling Ordinance (OOGH) was established, which regulated gambling operations on the island and introduced two central license types:

1. Master License – Issued to a limited number of companies, this license allowed holders to oversee other operators. Master licensees were authorized to issue sublicenses, fostering a dynamic industry by enabling smaller operators to enter the market through established license holders.

2. Sublicenses – These were obtained by operators seeking to work under the protection and guidance of a master licensee, thus simplifying the entry process for small- and medium-sized companies without the need to undergo complex licensing procedures.

This setup offered dual benefits: it simplified licensing for new entrants while ensuring oversight through the small pool of master licensees responsible for upholding industry standards.

To further enforce regulations, the Curacao Gambling Control Board (GCB) was founded in 1999. Initially, the GCB was primarily responsible for land-based casino regulation and issued licenses for lotteries and charity bingos.

Development Era: The 2000s

As the early 2000s dawned, Curaçao quickly emerged as a prominent licensing center for online casinos. However, this rapid growth brought challenges, primarily surrounding operator compliance and the protection of player rights. The surge in attention also pushed Curaçao to make its regulatory standards more robust and align more closely with international expectations.

The OOGH legislation was amended in 2001 to fortify its framework, bringing it more in line with global standards and aiming to keep Curaçao competitive as a destination for online gambling operators.

Modern Era and New Challenges

By 2014, the OOGH was revised once again to reflect evolving online gaming trends and improve regulatory transparency. This amendment introduced a tiered licensing system that classified licenses into various types, including master licenses, sublicenses, IP licenses, hosting licenses, as well as B2B and B2C licenses.

Until recently, Curaçao had four main master license holders, and B2C operators could apply for sublicenses through these primary licensees, in a process akin to white-label licensing in other regulated markets.

However, beginning in the spring of 2024, Curaçao announced plans to overhaul its licensing system, moving away from sublicenses in favor of a direct licensing model. By March 2024, sublicenses were suspended, and the gaming regulator required all sub-licensees to apply directly to the GCB for new licenses. Although the criteria for licensing remain largely unchanged, this regulatory shift aims to redefine Curaçao’s licensing landscape significantly.

The National Gambling Ordinance (LOK), new legislation currently under parliamentary review, is expected to take effect in the third quarter of 2024. This legislation aims to create a comprehensive regulatory framework for all gambling forms, addressing the issuance, suspension, and revocation of licenses, as well as introducing responsible gambling measures, all under GCB supervision.

The LOK also mandates the establishment of a new regulatory entity, the Curaçao Gaming Authority, which will replace the Curacao Gambling Control Board (GCB). This new authority will oversee the issuance of independent B2C and B2B licenses, giving operators under the former licensing structure the option to transition to the updated regime. Curaçao’s government has pledged a smooth transition process to ensure continuity for existing operators willing to comply with the new regulations.

Looking Forward

Curaçao’s journey toward comprehensive gambling legislation was initially driven by the economic growth potential of the internet era. By proactively addressing these opportunities and implementing targeted regulations, Curaçao solidified its status as a prominent global licensing center for gambling. However, with the impending implementation of the LOK, it remains to be seen how this fresh approach will influence the island’s gambling landscape and its operators.

By fLEXI tEAM