WILLEMSTAD - Recently, the online gaming exhibition SIGMA took place with the participation of various local and international stakeholders. Curaçao stands as one of the largest service providers globally in the field of online gaming or casino operations via websites.
Member of Parliament Steven Croes seized the opportunity to engage in discussions with different stakeholders regarding their perspectives and the government's proposed changes in this sector through the introduction of the "Landsverordening Online Kansspelen" (Online Gambling Regulation or LOK), which has been announced by the Minister for some time.
Croes, who has worked in this sector for 4 years and is well-acquainted with its workings, emphasizes that the online gaming sector in Curaçao directly employs at least 200 people through trust offices, each earning a monthly salary ranging from 5000 to 9000 guilders. The government has been benefiting from substantial income tax revenue for years due to these salaries. Additionally, indirectly, around 300 individuals work in various sectors such as notary offices, tax consultants, accounting firms, law firms, IT companies, and more, all of which provide services to the Online Gaming sector, contributing to their economic well-being. This, in essence, establishes the Online Gaming sector as one of the significant economic pillars of our country, even though it may be relatively unfamiliar to some in Curaçao.
It is crucial that the new legislation has no negative impact on this sector, which currently hosts between 1000 and 1200 online gaming companies, emphasizes the Member of Parliament. Some points raised by local and international stakeholders, as mentioned by Croes, include concerns that the proposed government changes will make Curaçao a much more expensive jurisdiction for business operations. This particularly refers to the high "substance" requirements that will be imposed on each of these online gaming companies under the new law. Each of them will soon be required to rent their office space and employ staff within a specified period. Additionally, the Minister of Finance aims to raise the licensing fees, which currently stand at 25,000 guilders per year, to 95,000 guilders per year, marking a significant increase.
All these changes will significantly increase the cost of doing business in Curaçao, and the country will still have to compete with nations like Malta and the Isle of Man. Everyone in the sector agrees that regulating and reforming the industry is acceptable but should be done in a responsible and gradual manner.
The Gaming Control Board, which the Minister of Finance intends to task with registering all companies and issuing licenses, recently indicated that it might not be impossible for them to delegate this responsibility to foreign parties. Croes warns that caution must be exercised when providing information about companies registered in Curaçao to other competing countries. He also asserts that it should not be the intention for generated revenues to leave Curaçao in the future.
According to Croes, the Minister of Finance has not provided sufficient clarity to the stakeholders in Curaçao for nearly a year regarding his plans but continues to mention them when attending online gaming expos abroad. This situation has created a lot of uncertainty for companies in the online gaming sector in Curaçao. In an industry where millions are at stake, uncertainties should not exist, as these companies might seek licenses elsewhere where there is more stability. This is already happening and is a cause for serious concern.
Finally, Croes urges the Minister of Finance to heed the advice of local sector experts who have over 30 years of experience in the online gaming industry. This is to prevent companies from leaving Curaçao for any reason, which would result in a significant loss of (well-paying) jobs.