Curacao Gaming License – An Overview
The Curaçao Gaming Control Board (GCB) has been conducting all of the country’s licensing activities since March 2020, when the Ministry of Finance tasked the board with supervising and controlling the industry.
In 2019, the GCB was also appointed as the AML/CFT supervisor for all gambling-related payments, including all online transactions taking place in and from Curacao. The AML requirements include complying with customer due diligence, implementing a Know Your Customer (KYC) procedure, and identifying and reporting Ultimate Beneficial Owners (UBOs).
Types of Curacao Gaming Licenses
- Online Gaming (National Ordinance on Offshore Games of Hazard (Landsverordening buitengaatse hazardspelen, P.B. 1993, no. 63))
- Land-based Casinos (National Ordinance Curaçao Casino Sector (AB 1999, no. 97))
- Bingo (National Ordinance Games of Hazard II 1988)
- Wega di Number (Lottery Ordinance 1909, AB 1965, no. 85, z.g.)
- National Lottery (National Ordinance on the National Lottery 1949, PB 1965, no. 122, z.g.)
- Goods Lottery (Lottery Ordinance 1909)
- Bon ku Né (National Ordinance Games of Hazard II 1988)
The framework for online gaming in Curacao was structured around two types of licenses: the master license and the sub-license. Master licensees had the authority to grant sub-licenses, creating a tiered system of regulation and oversight. The power was vested in them by the Department of Justice.
- Cyberluck Curacao N.V. – Curacao e-Gaming (#1668/JAZ)
- Gaming Curacao (#365/JAZ)
- Curacao Interactive Licensing N.V. (#5536/JAZ)
- Antillephone NV (#8048/JAZ)
Even though the Gaming Control Board is granted the rights to oversee and regulate the market, ensure compliance with all the legal requirements, monitor the implementation of the AML/CTF policies, safeguard player privacy and funds, and address any violation of their rights and the law. On the other hand, the licensing itself has been conducted by these four master license holders. It is their sole discretion to share the infrastructure and support sub-licensees. GCB is
2024 Update
However, with LOK, this, too, is about to change. The licensing system will be categorised into B2C (operators) and B2B (suppliers). B2B activities will include platform and game providers, whereas the B2C licenses will be reserved for operators solely. Master and sub-licenses will be discontinued.
The country’s licensing system is still in its transitional phase. LOK is expected to come into full force in September 2024. In the meantime, operators can still apply for a sub-license, albeit in a reduced capacity.
The Advantages of the Curacao Gambling License
- Low tax rates — One of Curacao’s standout advantages is its tax regime, which offers an exceptionally low tax rate on profits stemming from international operations. The corporate tax rate in Curacao is only 2%, and there is a 0% tax on casino profits.
- Fast product rollout — The path to securing a Curacao license is notably quicker than many of its counterparts, potentially reaching completion in two months, on average, assuming all documentation is correctly presented.
- Cost-effectiveness — Although the cost of acquiring a license in Curacao has seen an uptick in recent years, it’s still one of the more affordable options, with a price tag of around 20,000 euros. The value derived from its broad coverage makes it a cost-effective solution in the grand scheme.
- A single license covers all gaming verticals — The Curacao gaming license eradicates the need for multiple permits across different gaming categories. This all-in-one license encompasses everything, from sports betting and online casinos to lotteries and eSports, affording operators unmatched flexibility and diversity.
- Seamless licensing procedure — The application process cuts through the red tape, sparing applicants the daunting pile-up of paperwork and complex regulatory requirements prevalent in other jurisdictions. However, that is not to say that specific requirements are overlooked. Our team of seasoned legal experts will be there every step of the way to facilitate the process even further.
- Suited for seasoned operators and newcomers — Recent regulatory adjustments have tilted the scales, making Curacao an increasingly appealing hub for established gaming entities. Nonetheless, the jurisdiction’s mature market and regulatory framework with low costs cater well to startups, facilitating expansion and operational scaling with ease.
Requirements for the Curacao Gaming License
- Company registration — Applicants must secure a company registration certificate from the Chamber of Commerce of the Antilles. This process involves submitting a beneficiary’s identity document, address confirmation via recent utility bills, a bank recommendation, and information on income.
- Complete application — A formal application detailing the company’s activities and the software it intends to use, including third-party certification of the Random Number Generators powering its casino games, is required. This step is crucial for evaluating the suitability and readiness of the operation for licensing. Additionally, all authorised persons, shareholders, directors, and owners must provide copies of personal documents, including a passport, CV/resume, police clearance certificate, proof of domain ownership, and other personal details.
- Local representative and hosting — Anyone seeking a Curacao gambling license must have a physical address in the country and appoint a local representative. Additionally, hosting services, with at least one server physically located in the country, are vital to the process.
- License fees — The licensing process incurs specific fees that cover the assessment and issuance of the gaming license, which are pivotal in moving the application forward.
- Player protection measures — Strict adherence to player protection measures, including the refusal to register underage individuals (below 18) and residents of restricted territories such as the United States and the Netherlands Antilles, is a fundamental requirement, reflecting the licensee’s commitment to responsible gaming.
- AML and technical audits — Implementing Anti-Money Laundering (AML) procedures for all players and conducting technical audits of the gaming systems, including software certification and RNG (Random Number Generator) certificate, are critical for ensuring fairness and security and an essential segment of the licensing procedure.
- Game and website documentation — Applicants must provide comprehensive game descriptions and website rules in the form of detailed and unambiguous Terms and Conditions and privacy policies. Domain ownership must be established, reinforcing the legitimacy and exclusive operation of the gaming platform.
Curacao Gaming License Cost
- Company establishment — The first step includes setting up your operation within Curacao’s regulatory framework.
- Licensing fee — This grants you the legal endorsement to run your iGaming business, covering the spectrum of online gambling activities.
- Local hosting solution — Hosting game servers locally is a critical requirement for regulatory compliance, ensuring your operation has the necessary technological infrastructure in place.
- Management support for the first year of the business — SoftGamings offers a guiding hand through the early stages of your business; this support covers a range of operational, administrative, and compliance tasks.
- Documentation and regulatory compliance services — Handle the preparation, filing, and registration of all documentation needed to comply with Curacao’s regulatory standards. This is typically completed within a 4-6 week timeframe.
One of the most enticing aspects of Curacao’s taxation is the low corporate tax rate of just 2%, which positions it as a fiscally prudent choice for many operators.
Curacao Gaming License — Application Process
- Initial consultation — The first step is contacting our dedicated team for a personalized overview of the licensing process, ensuring your venture aligns with Curacao’s regulatory expectations.
- Document submission — Compile and submit all required documentation as outlined by our advisors. This step allows us to assess your eligibility and prepare for the formal application.
- Filling out the application form — Complete the detailed application form, providing in-depth information about your business’s operational scope, ownership structure, and financial health, laying the groundwork for regulatory review.
- Contractual agreement with SoftGamings — To formalise our partnership throughout the licensing journey, we need to enter into a formal service agreement that defines the scope of services, associated fees, and mutual obligations.
- Document review and approval — Upon submission, your documents undergo a rigorous review by the Curacao licensing authorities to verify adherence to all regulatory standards and requirements, a crucial phase for proceeding.
- Payment of licensing fee — Following the approval of your documentation, an invoice for the licensing fee will be issued. Prompt payment is essential to avoid any delays in the continuation of the licensing process.
- Legal incorporation of your company — Once the financial formalities are settled, the next step is the legal establishment of your gaming company in Curacao, a process typically completed within four weeks.
- Receipt of your gaming license — The final step in the application process culminates in issuing your Curacao gaming license, typically within 4-6 weeks post-incorporation, provided all information and documentation have been accurately presented and verified
National Ordinance for Games of Chance (LOK) — New Licensing Rules
As we previously mentioned, the central part of this initiative is the transition from the existing master and sub-license arrangement to a streamlined licensing model managed by the Curacao Gaming Authority (CGA), a newly formed independent body set to replace the current Gaming Control Board.
This reform introduces a bifurcated licensing system, clearly differentiating between B2C (operators) and B2B (suppliers) with comprehensive guidelines laid out in a forthcoming National Decree for Online Gaming.
The Curaçao Gaming Control Board (GCB) opened a licence application portal for new applicants on November 1st, 2023. It also aims to register sub-licensees that want to keep operating in the market under LOK.
Additionally, the upcoming legislative changes will bring about adjustments in the licensing fee structure. Prospective B2C operators can anticipate an application fee of approximately €4,000. Upon approval, the annual license fee will be around €12,000.
Moreover, each operational URL associated with the licensed operator will be subject to a monthly regulatory fee of €250, reflecting the authority’s move towards a more detailed and regulated fee system.
Conclusion
Moreover, with stricter rules, it seems the entire jurisdiction will divert from its reputation as a go-to option for “grey” market operators. Contact SoftGamings to learn more about the licensing procedure and how to leverage it for your gambling business.
