Curaçao Partners with the Netherlands to Overhaul Gambling Regulations

In a significant development for Curaçao's gambling industry, the government has passed the National Ordinance for Games of Chance (LOK), marking a decisive step toward modernizing the sector. This new legislation, which received parliamentary approval in December with a vote of 13 in favor and 6 against, is a response to growing concerns over regulatory shortcomings and controversies that have plagued the industry. With Finance Minister Javier Silvania spearheading the initiative, the reforms, initially proposed in 2022, aim to create a more transparent and regulated gambling environment. The collaborative effort with the Dutch government plays a vital role in realizing these changes, helping to restore public trust and improve the integrity of Curaçao's gaming market.

Dutch Support Vital for Implementation

A recent meeting between key figures from both Curaçao and the Netherlands highlighted the strength of this partnership. Minister Silvania, along with Dutch officials, including Justice and Security Minister David van Weel and State Secretary Zsolt Szabó, emphasized the need for close cooperation to ensure the success of the reforms. At the heart of this collaboration is the newly formed Curaçao Gaming Authority (CGA), which will work hand-in-hand with the Netherlands Gambling Authority (KSA) to monitor the industry.

This partnership is crucial in addressing longstanding issues such as money laundering, fraud, and corruption, which have tarnished the reputation of the island's gambling sector. The Dutch government has been particularly proactive, with a motion introduced by Dutch parliamentarian Michiel van Nispen encouraging the government to engage with Curaçao on stricter regulatory measures. The collaboration also includes a commitment to biannual consultations to assess progress and address emerging challenges.

Key Features of the New Gambling Law

The LOK brings significant reforms aimed at tackling illegal gambling activities and enhancing industry accountability. One of the key provisions is the introduction of more stringent licensing requirements for operators, which are designed to combat illicit operations and protect both players and investors. The law also mandates adherence to robust anti-money laundering protocols, responsible gambling policies, and comprehensive data security standards.

These reforms are seen as essential for rejuvenating the industry and ensuring that operators comply with international standards. Minister Silvania, who has championed these changes, has expressed that the new law is vital in restoring public confidence and fostering a safer and more ethical gambling environment in Curaçao.

Collaboration Between Regulatory Bodies

A cornerstone of the reform process is the close collaboration between the Curaçao Gaming Authority (CGA) and the Netherlands' KSA. This partnership is intended to leverage the KSA's expertise in gambling regulation to help Curaçao refine its enforcement practices. Together, the two bodies will share knowledge and strategies to create a more streamlined and effective regulatory framework, ensuring that only legitimate operators are licensed and that illicit activities are promptly addressed.

The emphasis on shared expertise and best practices is critical to the long-term success of these reforms. By working together, the KSA and CGA aim to establish a regulatory system that aligns with international standards while promoting a transparent and fair gambling market in Curaçao.

As part of their commitment to strengthening the gambling sector, the governments of Curaçao and the Netherlands have agreed to hold regular meetings with key stakeholders, including law enforcement and judicial bodies. These include the Public Prosecutor’s Office, the Financial Intelligence Unit (FIU) of Curaçao, and the Joint Investigation Team. These entities will play an essential role in the ongoing efforts to combat money laundering and other illicit activities in the gambling sector.

The reforms also include provisions for ongoing evaluation of the gambling landscape, ensuring that the regulatory environment remains responsive to evolving technologies and market dynamics. The goal is to create a sustainable, ethical, and transparent gambling industry in Curaçao that can serve as a model for other jurisdictions.

Source:
Curaçao Implements Gambling Reforms with Dutch Support, lcb.org, January 14, 2025