WILLEMSTAD - Curaçao has experienced a significant shortfall in licensing revenues, earning 19 million guilders less than projected during the first half of 2024. This financial gap was highlighted in a report from the Financial Supervision Board (Cft), which oversees financial matters in both Curaçao and Sint Maarten. While Curaçao saw an increase in tax revenue, earnings from licensing fees—particularly from the gambling sector—fell short of expectations. 

The Cft shared its concerns in its feedback on Curaçao’s second-quarter performance report for 2024. While tax revenues were higher than budgeted, the board raised alarms about the island’s underperformance in collecting gambling license fees. There is a considerable risk that income from both land-based and online gambling operators will fall below projections for the rest of the year. 

In the first half of 2024, the island’s "other revenues" were 12 million guilders lower than anticipated, largely due to a shortfall in gambling license fees. Currently, Curaçao’s license revenues are 19 million guilders behind budget estimates. However, the Cft noted that the report lacks detailed information on the different types of licensing revenues, preventing a full assessment of the situation. 

"The report does not provide a detailed breakdown of these different revenues, making it impossible for the Cft to assess which specific licensing rights are underperforming compared to the budget," the Cft stated. The board has requested further clarification from Curaçao and an update on the status of the legislative process for the Landsverordening op de Kansspelen (LOK), the new gambling law. 

Delays in Implementing LOK 

The revenue shortfall appears to be partly due to delays in implementing the LOK. Initially, Finance Minister Javier Silvania projected that the law would come into effect in early 2024. However, the process has stalled as the minister awaits feedback from the Council of Advice on an amended version of the law. Once received, the draft will still need to be reviewed by Parliament. 

With no clear timeline for the law’s enactment, the Cft has requested an update on the legislative progress. If it becomes evident that gambling license revenues will continue to fall short, the Cft advises the government to adjust its revenue forecasts downward. These revisions should be reflected in the 2024 budget amendment proposal. 

The Cft’s concerns underscore the importance of passing the new gambling law, which is expected to generate significant income for the island, both through direct gambling taxes and payroll taxes from companies required to establish a presence on Curaçao.