Curaçao has passed the long-awaited National Ordinance for Games of Chance (LOK), marking a transformative shift in the island’s online gambling regulations. Approved by 13 votes to 6, the bill is expected to overhaul the jurisdiction’s gaming sector, enhancing oversight and boosting its global reputation.
A New Era for Curaçao’s Online Gambling Industry
The passage of the LOK aims to replace the island’s outdated two-tier licensing system, where master license holders subcontracted permits with minimal oversight. Under the new framework, the Curaçao Gaming Control Board (GCB) will directly regulate licensees, bringing the system in line with global standards.
The legislation was introduced as part of reforms tied to Dutch COVID-19 relief measures in 2022, addressing concerns over lax regulation in one of the world’s largest offshore gaming jurisdictions. With tens of thousands of operators historically licensed under Curaçao’s system, the LOK represents the most significant regulatory shake-up in decades.
However, critics argue the reforms leave gaps in oversight. Additionally, the Ministry of Finance faced backlash for issuing new licenses ahead of the bill’s passage, prompting opposition politician and forensic financial investigator Drs. Luigi Faneyte to file multiple complaints alleging misconduct.
Allegations and Scandals Surrounding Licensing
Faneyte has submitted complaints to the Curaçao Public Prosecutor’s Office, the Malta Gaming Authority, the FBI, and other authorities, citing irregularities in the licensing process. Central to the claims is a recording, allegedly involving figures tied to a gambling operator, discussing methods to evade legal liability.
While the GCB and several individuals have denied the allegations and questioned the authenticity of the recording, Faneyte continues to press the matter, accusing key figures of improprieties. The GCB has stated that it is investigating the matter further and may pursue legal measures.
Political and Legal Fallout
Finance Minister Javier Silvania dismissed Faneyte’s accusations, calling him a “bomba” (traitor) and accusing him of harming Curaçao’s reputation. Silvania stated:
“Faneyte’s accusations have no basis. It is the right of every citizen to report criminal offences to the Public Prosecution Service. But Mr. Faneyte, the international press cannot help you with your reports. You only harm the island.”
Meanwhile, figures named in Faneyte’s reports have filed counter-claims for libel, further intensifying the political disputes. Some speculate Faneyte’s motives may be linked to his political aspirations with the PAR party, which seeks to regain power in the 2025 elections.
BC.Game and International Implications
The controversies extend to the global stage, as Curaçao-licensed operators like BC.Game face scrutiny. The Leicester City sponsor recently withdrew its Curaçao license, leading the UK Gambling Commission to review white-label arrangements.
The GCB later revoked BC.Game’s license, following allegations involving its Small House BV holding company. This development has fueled discussions around the effectiveness of Curaçao’s reforms and their potential impact on global gaming partnerships.
Looking Ahead
Supporters of the LOK believe it will create a robust regulatory environment, fostering trust in Curaçao’s gaming sector. However, critics argue that the legislation fails to address deeper systemic issues.
As Curaçao moves forward with its reforms, the island’s ability to implement these changes effectively will be closely watched by the global iGaming industry. The approval of the LOK marks a pivotal moment, but ongoing controversies highlight the challenges ahead in rebuilding trust and ensuring compliance.
Sources:
- Curaçao Passes Landmark Online Gambling Reforms, next.io, December 17, 2024.
- LinkedIn Post on LOK Passage, linkedin.com, December 2024.
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