Curaçao’s gaming sector has undergone a significant transformation with the introduction of the National Ordinance on Games of Chance (LOK), effective from December 24, 2024. This new law overhauls the licensing system, reinforces compliance measures, and sets higher standards for operational requirements in the iGaming industry. With the Curaçao Gaming Authority (CGA) now at the helm, operators must understand and adapt to the updated regulations to thrive in this evolving market.
1. Why the LOK Matters
The implementation of the LOK is crucial for several key reasons:
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Combatting Unregulated Gambling: The law directly addresses illegal gambling activities by ensuring that only entities with a valid CGA-issued license can operate in or from Curaçao’s borders.
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Strengthening Global Trust: By adopting a more transparent and regulated framework, Curaçao aims to improve its international standing as a legitimate and safe destination for iGaming companies.
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Protecting Consumers: Player safety is prioritized by enforcing stricter responsible gambling protocols, ensuring that operators are held accountable for safeguarding vulnerable individuals.
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Ensuring Financial Integrity: The law introduces financial transparency requirements, helping to prevent fraud and money laundering within the iGaming sector.
These reforms are expected to elevate Curaçao’s reputation on the global stage, making it a more reliable jurisdiction for both operators and players alike.
2. Key LOK Requirements for Licensees
Under the LOK, businesses seeking a gaming license must meet a series of stringent criteria designed to ensure compliance and accountability:
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Local Incorporation: Incorporate and establish your business in Curaçao, with management led by at least one Curaçao resident (service provider).
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Transparency in Ownership: Disclose the identities and roles of all ultimate beneficial owners (UBOs) and key stakeholders.
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Financial Compliance: Fulfill financial obligations, including tax payments, and adhere to Curaçao’s financial regulations.
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Adherence to Legal Frameworks: Comply with legal frameworks like the National Ordinance on the Reporting of Unusual Transactions and the Sanctions Ordinance.
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Responsible Gambling Measures: Enforce responsible gambling policies to protect minors and vulnerable individuals.
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Employee Training Requirements: Provide ongoing training for employees in responsible gambling, anti-money laundering (AML), and customer interaction.
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Regulatory Reporting Obligations: Submit compliance reports to the CGA as needed to verify adherence to regulatory standards.
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Local Presence Requirements: Employ at least one key local staff member within four years and three by the fifth year (excluding the local director), operating from a dedicated, immovable property for gaming activities.
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Startup Exemptions: Qualifying startups may be exempt from local presence requirements. Contact us to learn more.
3. The Transition Process for Existing Operators
Existing license holders will have a transition period of up to six months, with the possibility of an additional six-month extension, to align their operations with the new requirements under the LOK.
4. How to Apply for a LOK License
The process of obtaining a LOK license follows a two-step procedure:
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Stage 1: Evaluation of the applicant’s integrity, financial standing, and the backgrounds of stakeholders, typically completed within eight weeks.
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Stage 2: A review of compliance measures followed by a final decision, typically within an additional eight weeks. Extensions may apply up to four weeks during either stage.
5. Professional Support for LOK Compliance
As Curaçao's gaming landscape evolves, businesses will need assistance to navigate the complexities of the LOK framework. To ensure smooth adaptation and ongoing compliance, companies can benefit from specialized consultancy services that offer:
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Assistance with application submissions and regulatory reporting.
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Tailored support for implementing anti-money laundering (AML) practices, responsible gambling programs, and other compliance measures.
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Guidance in setting up a local presence and meeting staffing and operational requirements.
Organizations such as Internet Incorporate provide valuable expertise, helping businesses transition seamlessly into the new regulatory environment while maximizing their opportunities under the updated legal structure.
Conclusion
Curaçao’s LOK gambling law marks a new era for the iGaming sector, prioritizing transparency, compliance, and responsible gaming. By understanding the new requirements and leveraging professional services, operators can successfully transition into this regulated market and sustain long-term growth. For expert assistance in achieving LOK compliance, contact Internet Incorporate today!