WILLEMSTAD - Curaçao seems to (finally) be working on reforming the online gambling sector. This was stated in a letter by Undersecretary for the Interior and Kingdom Relations, Raymond Knops.
Curacao was one of the earliest licensing bodies in real money online gambling. They launched as 'Cyberluck' in 1996 while still part of the Netherlands Antilles. There are plenty of online casinos with a Curacao gambling license. Having been in the game since 1996, there are an estimated 450 online casinos in the country. If you gamble online often, you might even know some by name. Slots Empire Casino, El Royale Casino, and even the oddly titled Vegas Casino Online are all Curacao Online casinos. While the Curacao online casinos are more willing to work with cryptocurrencies, the legal gambling websites in the UK are famous for their security measures and support of the games by the licensed software providers. Both the licensing options have their own comparative advantages, meaning that it's for you to decide what to choose, after all. Fundashon pa Maneho di Adikshon is our primary local partner in the promotion of responsible gaming and the fight against gambling addiction. The GCB is a Silver Member of the National Council on Problem Gambling (NCPG). For the GCB and FMA, this membership is an important source of knowledge, resources and networking opportunities in support.
To limit the consequences of the Covid19 pandemic, Curaçao receives financial support from the Netherlands. Since the second tranche in May 2020, this support is no longer without obligation.
Curaçao must meet a number of conditions in exchange for support from the Netherlands. These conditions are laid down by the Netherlands and Curaçao in the 'Landspakket' (Country Package).
Two agreements in this 'Country Package' are of interest those who are interested in online casinos. These can be found under H.2 and H.19 in the list of reforms and measures.
Several thousand online casinos operate from Curaçao. Most of them do not have the best reputation. Exceptions, such as Omni Slots and Lucky Days, are rare.
Independent regulator
Curaçao must have a plan ready by March 1, 2021 in which the laws and regulations allow an independent regulator to supervise the online gambling sector. Permits must be issued by this supervisor. If licensees do not comply with the rules, the supervisor must withdraw the license.
This is not happening now. There are several 'master licensees' on Curaçao. These are private telecom companies. Now there are five: Antillephone N.V., Cyberluck, Curaçao Interactive Licensing, Gaming Services Provider and The Elite Turf Club. Although some of these master licensees try to give the impression with their name and logo that they are an official regulator, that is not the case.
They grant so-called 'sub-licenses' to online casinos and online bookmakers. In practice, it is mainly commercial motives that prevail in the granting of these permits and the 'supervision'. Among other things, this means that permits are rarely revoked. This has ensured that many thousands of gambling sites are active from Curaçao.
Soon these sub-licensees will also have to pay to the government. Now they do that to the 'master licensees'.
Gaming sites must respect local laws
By September 1, 2021, Curaçao must have a plan that provides that casinos operating out of Curaçao comply with the legislation in countries where they operate. And that means quite a bit.
Now Curaçao is especially popular with online casinos that do not abide by the rules in the countries where they operate.
That will no longer be allowed. This means, for example, that casinos with a license from the Gaming Control Board may no longer accept players from the Netherlands if they do not have a license from the Gaming Authority.
De facto, this means that online casinos with a license in Curaçao can only accept players from Curaçao, supplemented by a few countries that accept the license from Curaçao.
This means that the sales market is declining from billions of world residents to barely the 160 thousand residents of Curaçao. The question then remains how profitable running a gambling site from Curaçao will be.
Income for Curaçao
The third obligation is that Curaçao must work on collecting gambling tax, corporate tax and license fees.
Currently, barely 2 percent of the profit that gambling companies make on Curaçao goes to the treasury. This 2 percent is the tax rate in the so-called e-zone on Curaçao. Many sub-licensees hardly pay any tax because they operate via Cyprus, for example.
Fees for the permits are collected by the master licensees.
The big question is of course how big the size of the gambling sector on Curaçao will be if there is an independent regulator, stricter rules are introduced, gambling sites can lose their license and gambling sites with a Curaçao license must comply with local legislation of the countries where they operate.
The online gambling world features over a dozen different licensing jurisdictions. These jurisdictions are responsible for vetting applicants and issuing gaming licenses to companies.
Curacao is one of the largest authorities in the industry. They have hundreds of licensees and continue building on this amount.
Curacao eGaming seems to be doing something right since they've attracted so many companies. But they're mostly popular due to their lax standards. They don't thoroughly vet applicants, and they approve just about any company who can cover the fees.
These factors have led to Curacao being known as a 'rubber stamp' jurisdiction. Such licensing bodies are looked down upon for their weak guidelines.
The good news, though, is that they're trying to step up their standards. But is this effort enough to save their reputation?
More importantly, should you trust gambling sites with one of these licenses? Keep reading as I discuss this matter, beginning with how Curacao earned its lowly reputation.
Brief History of Curacao eGaming
Curacao was one of the earliest licensing bodies in real money online gambling. They launched as 'Cyberluck' in 1996 while still part of the Netherlands Antilles.
They began competing against the likes of Belize, Costa Rica, and Antigua for a slice of the local licensing pie and emerged as a successful jurisdiction from a monetary standpoint, given their large number of licensees.
However, Cyberluck also developed a reputation for having no oversight over its operators. Multiple casinos and sportsbooks house in Curacao have closed without repaying players.
Cyberluck, meanwhile, didn't do anything in these instances. They eventually changed their name to Curacao eGaming in hopes that rebranding could improve their reputation.
While things have improved slightly, Curacao eGaming still does little to help players. They don't intervene in operator-gambler disputes and merely provide a place for companies to legally operate.
Now a constituent country of the Netherlands, Curacao has recently begun to worry about their reputation. As I'll cover later, the Ministry of Finance has taken over the online gaming sector. Only time will tell if they can turn the licensing jurisdiction's reputation around.
Characteristics of a Curacao Online Gaming License
Curacao is one of the cheapest jurisdictions to obtain licensing. They issue 'master licenses' to approved applicants that cover a 60,000 ANG (approx. 35,000 USD) fee.
Licensees must then pay 10,000 ANG (approx. 5,900 USD) in licensing fees every month for the first two years. They also need to pay a 2% tax on annual net profits, which is extremely cheap compared to other jurisdictions.
Yet one more bonus is that master licenses can issue sublicenses to their different skins. An all-encompassing software provider, such as Microgaming, can cover licensing for all of the casino skins that it serves.
The cherry on top is that Curacao eGaming licenses are easy to obtain. Well-funded applicants have little to worry about as long as they properly fill out forms and have the necessary money.
Why Does Curacao Attract Rogue Operators?
Earlier, I covered how Curacao eGaming has drawn some unsavory operators. These are referred to as 'rogue' gaming sites, because they're dishonest and have no qualms about cheating customers.
Curacao seems to draw these types of licensees for several reasons. Here's a recap of why they're a hotspot for rogues.
Low Fees
A $35,000 'setup fee,' plus $5,900 every month thereafter, might seem like a lot of money for licensing. However, it's a rather miniscule amount compared to what many entities require.
Antigua, which is by no means a blue-chip jurisdiction, requires a $15,000 application fee. They then demand a $100,000 annual fee on top of this.
The UK Gambling Commission barely charges anything for an application. However, they tax a lofty 15% of total online gambling revenue.
High Rate of Approval
Applying with the UKGC, Danish Gambling Authority, New Jersey Division of Gaming Enforcement, or any other prestigious jurisdiction carries a chance of rejection. The same can't be said of Curacao's licensing process.
They'll approve just about any operator that can pony up the setup fee, monthly dues, and taxes. They're not overly worried about potential rogue operators.
Little Oversight
Curacao has a history of being hands off when it comes to operators. They're not going to intervene on behalf of a gambler who feels they've been ripped off.
This isn't the only licensing body that behaves in this matter.
Not every company that obtains a Curacao license is unreputable. But the bad actors appreciate this jurisdiction's low standards.
Ability to Serve Numerous Countries
A master license covers most of the world. The only countries or territories that are banned at the time of this writing include:
- Aruba
- Bonaire
- Curacao
- France
- The Netherlands
- Saba
- Statia
- Maarten
- Singapore
- US
The lucrative US gaming market isn't available to Curacao operators. However, these licenses apply to numerous other countries.
Curacao in the Process of Stepping up Their Standards
The Ministry of Justice has been running Curacao eGaming for over two decades. However, this nation is ready for a change with their online gambling licensing business.
The Ministry of Finance, which oversees the country's land-based casinos, will assume control over internet gambling licensing. This change will see the Ministry of Finance's Gaming Control Board (GCB) preside over online gaming matters.
Kenneth Gijsbertha, the Finance Minister, told Antilliaans Dagblad that his department hopes to improve the country's licensing reputation.
'In the case of games of chance. Fairness of the offered payment of the prizes is not guaranteed, which disadvantages players and seriously detracts from the international image of Curacao.'
The Finance Minister also wants to impose tougher standards on licensees and ensure that all operators comply with international laws. Regarding the latter, Gijsbertha wants to prevent terrorists and money launderers from using their jurisdiction to carry out crimes.
Whether or not these changes result in a major change remains to be seen. Curacao isn't the world's worst licensing jurisdiction, but they're far from the best.
Perhaps only Belize, Costa Rica, and Panama have a lower reputation. GCB has its work cut out in trying to change the country's perception as a licensing authority.
Conclusion
Curacao's history doesn't inspire much trust in their licensing. They haven't done a great job of cross-checking applicants and ensuring that only quality companies operate in their jurisdiction.
That said, you can't have a lot of faith when you see the Curacao eGaming shield at the bottom of gaming sites. The only thing this shield means is that a company is serious enough to obtain a license. They've ponied up the fees to operate in a legal gaming jurisdiction, which is a step in the right direction.
However, you shouldn't expect this licensing authority to intervene on your behalf. Curacao eGaming has never shown the teeth to step up and ensure that operators treat customers fairly.
Curacao Gambling Sites
Gambling sites are essentially able to get away with anything in Curacao. They can refuse payment to players for arbitrary reasons and feature abusive bonus terms and conditions.
You just need more diligence when dealing with such sites. You can read reviews and check industry watchdog sites to get a read on these gambling sites' reputations.
You'll find that some Curacao-based gambling companies are very reputable. They pay players on time, run fair games, and have good customer support.
Eventually, you may also be able to have some confidence in Curacao licensing. The Ministry of Finance will be running the online gaming sector, in addition to overseeing brick and mortar casinos.
Several thousand online casinos operate from Curaçao. Most of them do not have the best reputation. Exceptions, such as Omni Slots and Lucky Days, are rare.
Independent regulator
Curaçao must have a plan ready by March 1, 2021 in which the laws and regulations allow an independent regulator to supervise the online gambling sector. Permits must be issued by this supervisor. If licensees do not comply with the rules, the supervisor must withdraw the license.
This is not happening now. There are several 'master licensees' on Curaçao. These are private telecom companies. Now there are five: Antillephone N.V., Cyberluck, Curaçao Interactive Licensing, Gaming Services Provider and The Elite Turf Club. Although some of these master licensees try to give the impression with their name and logo that they are an official regulator, that is not the case.
They grant so-called 'sub-licenses' to online casinos and online bookmakers. In practice, it is mainly commercial motives that prevail in the granting of these permits and the 'supervision'. Among other things, this means that permits are rarely revoked. This has ensured that many thousands of gambling sites are active from Curaçao.
Soon these sub-licensees will also have to pay to the government. Now they do that to the 'master licensees'.
Gaming sites must respect local laws
By September 1, 2021, Curaçao must have a plan that provides that casinos operating out of Curaçao comply with the legislation in countries where they operate. And that means quite a bit.
Now Curaçao is especially popular with online casinos that do not abide by the rules in the countries where they operate.
That will no longer be allowed. This means, for example, that casinos with a license from the Gaming Control Board may no longer accept players from the Netherlands if they do not have a license from the Gaming Authority.
De facto, this means that online casinos with a license in Curaçao can only accept players from Curaçao, supplemented by a few countries that accept the license from Curaçao.
This means that the sales market is declining from billions of world residents to barely the 160 thousand residents of Curaçao. The question then remains how profitable running a gambling site from Curaçao will be.
Income for Curaçao
The third obligation is that Curaçao must work on collecting gambling tax, corporate tax and license fees.
Currently, barely 2 percent of the profit that gambling companies make on Curaçao goes to the treasury. This 2 percent is the tax rate in the so-called e-zone on Curaçao. Many sub-licensees hardly pay any tax because they operate via Cyprus, for example.
Fees for the permits are collected by the master licensees.
The big question is of course how big the size of the gambling sector on Curaçao will be if there is an independent regulator, stricter rules are introduced, gambling sites can lose their license and gambling sites with a Curaçao license must comply with local legislation of the countries where they operate.
The online gambling world features over a dozen different licensing jurisdictions. These jurisdictions are responsible for vetting applicants and issuing gaming licenses to companies.
Curacao is one of the largest authorities in the industry. They have hundreds of licensees and continue building on this amount.
Curacao eGaming seems to be doing something right since they've attracted so many companies. But they're mostly popular due to their lax standards. They don't thoroughly vet applicants, and they approve just about any company who can cover the fees.
These factors have led to Curacao being known as a 'rubber stamp' jurisdiction. Such licensing bodies are looked down upon for their weak guidelines.
The good news, though, is that they're trying to step up their standards. But is this effort enough to save their reputation?
More importantly, should you trust gambling sites with one of these licenses? Keep reading as I discuss this matter, beginning with how Curacao earned its lowly reputation.
Brief History of Curacao eGaming
Curacao was one of the earliest licensing bodies in real money online gambling. They launched as 'Cyberluck' in 1996 while still part of the Netherlands Antilles.
They began competing against the likes of Belize, Costa Rica, and Antigua for a slice of the local licensing pie and emerged as a successful jurisdiction from a monetary standpoint, given their large number of licensees.
However, Cyberluck also developed a reputation for having no oversight over its operators. Multiple casinos and sportsbooks house in Curacao have closed without repaying players.
Cyberluck, meanwhile, didn't do anything in these instances. They eventually changed their name to Curacao eGaming in hopes that rebranding could improve their reputation.
While things have improved slightly, Curacao eGaming still does little to help players. They don't intervene in operator-gambler disputes and merely provide a place for companies to legally operate.
Now a constituent country of the Netherlands, Curacao has recently begun to worry about their reputation. As I'll cover later, the Ministry of Finance has taken over the online gaming sector. Only time will tell if they can turn the licensing jurisdiction's reputation around.
Characteristics of a Curacao Online Gaming License
Curacao is one of the cheapest jurisdictions to obtain licensing. They issue 'master licenses' to approved applicants that cover a 60,000 ANG (approx. 35,000 USD) fee.
Licensees must then pay 10,000 ANG (approx. 5,900 USD) in licensing fees every month for the first two years. They also need to pay a 2% tax on annual net profits, which is extremely cheap compared to other jurisdictions.
Yet one more bonus is that master licenses can issue sublicenses to their different skins. An all-encompassing software provider, such as Microgaming, can cover licensing for all of the casino skins that it serves.
The cherry on top is that Curacao eGaming licenses are easy to obtain. Well-funded applicants have little to worry about as long as they properly fill out forms and have the necessary money.
Why Does Curacao Attract Rogue Operators?
Earlier, I covered how Curacao eGaming has drawn some unsavory operators. These are referred to as 'rogue' gaming sites, because they're dishonest and have no qualms about cheating customers.
Curacao seems to draw these types of licensees for several reasons. Here's a recap of why they're a hotspot for rogues.
Low Fees
A $35,000 'setup fee,' plus $5,900 every month thereafter, might seem like a lot of money for licensing. However, it's a rather miniscule amount compared to what many entities require.
Antigua, which is by no means a blue-chip jurisdiction, requires a $15,000 application fee. They then demand a $100,000 annual fee on top of this.
The UK Gambling Commission barely charges anything for an application. However, they tax a lofty 15% of total online gambling revenue.
High Rate of Approval
Applying with the UKGC, Danish Gambling Authority, New Jersey Division of Gaming Enforcement, or any other prestigious jurisdiction carries a chance of rejection. The same can't be said of Curacao's licensing process.
They'll approve just about any operator that can pony up the setup fee, monthly dues, and taxes. They're not overly worried about potential rogue operators.
Little Oversight
Curacao has a history of being hands off when it comes to operators. They're not going to intervene on behalf of a gambler who feels they've been ripped off.
This isn't the only licensing body that behaves in this matter.
Not every company that obtains a Curacao license is unreputable. But the bad actors appreciate this jurisdiction's low standards.
Ability to Serve Numerous Countries
A master license covers most of the world. The only countries or territories that are banned at the time of this writing include:
- Aruba
- Bonaire
- Curacao
- France
- The Netherlands
- Saba
- Statia
- Maarten
- Singapore
- US
The lucrative US gaming market isn't available to Curacao operators. However, these licenses apply to numerous other countries.
Curacao in the Process of Stepping up Their Standards
The Ministry of Justice has been running Curacao eGaming for over two decades. However, this nation is ready for a change with their online gambling licensing business.
The Ministry of Finance, which oversees the country's land-based casinos, will assume control over internet gambling licensing. This change will see the Ministry of Finance's Gaming Control Board (GCB) preside over online gaming matters.
Kenneth Gijsbertha, the Finance Minister, told Antilliaans Dagblad that his department hopes to improve the country's licensing reputation.
'In the case of games of chance. Fairness of the offered payment of the prizes is not guaranteed, which disadvantages players and seriously detracts from the international image of Curacao.'
The Finance Minister also wants to impose tougher standards on licensees and ensure that all operators comply with international laws. Regarding the latter, Gijsbertha wants to prevent terrorists and money launderers from using their jurisdiction to carry out crimes.
Whether or not these changes result in a major change remains to be seen. Curacao isn't the world's worst licensing jurisdiction, but they're far from the best.
Perhaps only Belize, Costa Rica, and Panama have a lower reputation. GCB has its work cut out in trying to change the country's perception as a licensing authority.
Conclusion
Curacao's history doesn't inspire much trust in their licensing. They haven't done a great job of cross-checking applicants and ensuring that only quality companies operate in their jurisdiction.
That said, you can't have a lot of faith when you see the Curacao eGaming shield at the bottom of gaming sites. The only thing this shield means is that a company is serious enough to obtain a license. They've ponied up the fees to operate in a legal gaming jurisdiction, which is a step in the right direction.
However, you shouldn't expect this licensing authority to intervene on your behalf. Curacao eGaming has never shown the teeth to step up and ensure that operators treat customers fairly.
Curacao Gambling Sites
Gambling sites are essentially able to get away with anything in Curacao. They can refuse payment to players for arbitrary reasons and feature abusive bonus terms and conditions.
You just need more diligence when dealing with such sites. You can read reviews and check industry watchdog sites to get a read on these gambling sites' reputations.
You'll find that some Curacao-based gambling companies are very reputable. They pay players on time, run fair games, and have good customer support.
Eventually, you may also be able to have some confidence in Curacao licensing. The Ministry of Finance will be running the online gaming sector, in addition to overseeing brick and mortar casinos.
Curacao has a lot of ground to make up regarding their reputation. That said, I can't say for sure whether the switch will make a huge difference.
Curacao Gambling Sites Free
But this licensing jurisdiction may have more hope than it previously did under the Ministry of Justice. I might reform my opinion on Curacao licenses if positive change is brought about.
