WILLEMSTAD - During a presentation in Curaçao, the Gaming Control Board (GCB) shared critical updates regarding the new gambling legislation, Landsverordening op de Kansspelen (LOK), and its potential impact on the island’s economy. The presentation, held last Wednesday and hosted by the Curaçao Economists Club, featured GCB Chairman Cedric Pietersz and former GCB Director Gino Campbell. The speakers discussed the anticipated reforms to Curaçao’s gambling policies and the economic advantages the law could bring once implemented.
In May, the Council of Advice received an amended version of the LOK, which incorporated previous recommendations. The GCB now expects the law to move forward after receiving new feedback from the Council, with just one more central committee meeting needed before it heads to Parliament for final approval.
Economic Benefits for Curaçao
According to the GCB’s presentation, there are roughly 1,000 sublicense holders expected to be active in Curaçao by early 2024, operating thousands of online casinos. However, these businesses currently contribute little to the country’s revenue and have harmed Curaçao's reputation, particularly due to difficulties accessing services like local banking.
The new gambling law, the LOK, aims to rectify these issues. Minister Silvania has emphasized that the legislation is expected to generate significant revenue for the island through gambling taxes and payroll contributions. The law will require gambling companies to establish part of their operations in Curaçao, which should create more jobs and indirectly benefit sectors such as hospitality.
Additionally, both Minister Silvania and the GCB are exploring ways to increase the use of local services by gambling companies. Most current expenditures by online gambling providers go to foreign entities, such as game providers. It remains unclear whether Curaçao is considering establishing live casino studios as part of these reforms.
Challenges and Threats
The speakers also addressed the challenges Curaçao faces as a gambling jurisdiction, identifying weaknesses and threats in the market through a SWOT analysis. One major issue is the island’s tarnished reputation, exacerbated by "misinformation about the ongoing reforms" under the LOK. Furthermore, legal disputes between Curaçao-based online casinos, master license holders, and players who have not received payouts have further weakened the market.
The GCB faced critical questions during the Q&A session regarding the lack of oversight in the online gambling industry. One attendee raised concerns that player complaints had been ignored for years, and asked when the GCB planned to begin proper regulation. The GCB responded that they are still in the process of setting up the new regulatory authority and implementing the upcoming legislation.
Artificial Intelligence and Third-Party Assistance
Despite these challenges, Curaçao remains "the largest online gaming jurisdiction in the world," according to the GCB. However, this status has raised concerns about the board’s capacity to manage the workload. During the session, questions arose regarding how the Curaçao Gaming Authority intends to handle 300,000 to 500,000 compliance cases with a relatively small staff, considering that the Dutch Gambling Authority, with over 100 employees, managed only 22 cases.
The GCB stated that they plan to use artificial intelligence (AI) to help manage licensing and compliance monitoring. They also expect to collaborate with third-party companies to support their operations. Mario Galea, in an earlier interview, hinted that his company could assist in these efforts.
The GCB believes that, with AI and third-party support, they will be able to carry out their duties with a workforce of 70 to 80 employees, ensuring that they can manage the influx of cases as the new law is implemented.
