November 8, 2023
Reading Time: 4 minutes
By: Alexandra, Chief Legal Officer at Alpha Affiliates
Curaçao has long been known for its business-friendly environment for iGaming companies. However, the existing regulatory framework is being updated to adhere to international standards. The new regulations, known as the National Ordinance for Games of Chance (LOK), will come into force in the first three months of 2024. These changes will introduce stricter requirements for anti-money laundering, fraud prevention, and player protection.
The new regulations will establish the Curacao Authority (CGA) as the regulatory body responsible for enforcing the guidelines. The CGA will be in charge of compliance, imposing sanctions, introducing new policies, and issuing licenses. This new regulatory body aims to ensure a safer and more responsible iGaming industry.
The LOK framework brings several important changes that operators need to be aware of:
Disclosure procedures: Operators are now required to disclose their beneficiaries and provide proof of identity and funding sources.
Data Protection: Operators must have measures in place to secure user data and protect it from unauthorized access and misuse.
Anti-money laundering: Operators must implement policies and procedures to prevent money laundering activities.
Privacy for players: iGaming companies need to be transparent in their services while respecting players' rights and privacy. Responsible gaming tools and support should be provided to create a safe environment for players.
Monitoring: Operators must report any suspicious transactions or fraudulent activities to the CGA to reduce their occurrence and mitigate consequences.
Alongside the regulatory changes, the licensing fees will increase to foster a safer and more responsible environment. Starting next year, the proposed fee for a license will be $5,000. Additional fees per qualified person and UBO will also apply. The Annual License fee for B2C companies will decrease to $25,000, and a gaming contribution of $26,500 to the CGA will be expected from licensed iGaming companies.
Operators have two options when it comes to licensing:
Purchasing a new license: Operators can apply for a new license by evaluating their corporate structure and ensuring compliance with the LOK requirements. Successful applicants will receive a provisional license until the LOK comes into full effect.
Registering as a sublicensee: Operators with licenses under the old regime have a set period of time to register for a full license before their sub-licenses expire. They must purchase a license within 90 days following their extension to continue operating.
The new LOK regulations should not be seen as an inconvenience but as an opportunity for development and respect from the international gaming community. Operators must understand and comply with the changes to maintain their current operations and strengthen their business in the long run. By staying on top of monitoring and analysis, operators can continue functioning as normal while creating a responsible and supportive environment for players.