WILLEMSTAD - The Curacao Gambling Control Board and its Maltese consultant Mario Galea have remained silent on rumors that the current gambling regime will be replaced by one that favors the channeling of all applications through an entity linked to the ex-CEO of the Malta gaming regulator.
Following a year of uncertainty, in early July, Curacao announced it would overhaul its online gambling regime by setting up a new regulatory body and toughening up licensing requirements.
Currently, Curacao is favored as an online gambling jurisdiction due to its minimal requirements for operators. This led to issues with illegal gambling and prompted the authorities to replace the current master license scheme- whereby master license holders issue their own licenses and supervise holders themselves- with a centralized approach.
This new regime will see licenses for B2B and B2C issued by the Curacao Gaming Authority, an independent body created by the government. License requirements will be tougher, and fees will be applicable.
To help draft the framework, the government brought Mario Galea, who previously headed the Malta Lotteries and Gaming Authority, now the Malta Gaming Authority.
He took over the CEO role in 2004 and drafted the laws that made Malta the first EU country to regulate online gambling. He then served as chairman of the board, despite having his own iGaming consultancy both locally and internationally, which could have been considered a conflict of interest.
Galea resigned in 2009, and no reason was publicly given, although he returned to the institution for seven months in 2013 before departing again. Since then, with his company Random Consulting, Galea has worked in various countries, including in the State of New Jersey in the US, and according to insiders, in Georgia and Central Asia.
Sources from within the Curacao Control Board who wished to remain anonymous due to the situation's sensitivity, stated that due to a lack of staff capacity to process, issue, and supervise online gambling licenses, the authorities searched for another solution. They added that Galea suggested that applications and all related matters be funneled through an entity linked to him.
In fact, local media reported Galea said that the application fee will now cost around EUR 4000 with an annual fee of EUR 12,000 with an additional EUR 250 payable per URL, stating this would generate revenue for the government.
Questions were sent to the commission regarding how much Galea has been paid for his consultancy services, what the conditions of the agreement are, and whether it is a conflict of interest that Galea advised on the changes to the law and is set to benefit from them. No answer was received.
Similar questions were also sent to Galea, but no answer was received despite multiple follow-ups.
Both were also asked about the possible involvement of Iosif Galea, a fellow Maltese gambling consultant who is now subject to a criminal investigation. After whispers of wrongdoings for several years, the former MGA compliance officer was stripped of all directorships at MGA licensed businesses and arrested for fraud.
Galea was detained on a European Arrest Warrant (EAW) at the start of June while on holiday in Italy with a group that included Malta’s disgraced ex-prime minister, Joseph Muscat. He had been wanted by the German law enforcement authorities since 2021 over a raft of crimes, including tax evasion. He was already on bail in Malta over an alleged leak of information from the MGA.
Concerns from corporate service providers that work in Curacao are rising over the potential prospect of a monopoly.
Speaking on the condition of anonymity, one such individual said, “while the previous regime did need improvements, having all applications go through one company is not fair or transparent. Why should only one person benefit? Especially one that came up with the plan?”
Another, working for a master license owner, added, “this is clearly a conflict of interest, but there is no transparency, no one is saying anything, we don’t know if it will happen and if it does, what that means for us.”
