The introduction of the Gambling Ordinance (Landsverordening op de Kansspelen, LOK) by Minister Javier Silvania was presented as a significant step towards regulating the gaming industry in Curaçao and strengthening the island's position in the international market. However, the rushed implementation of this law, along with the involvement of foreign "investors," has raised serious concerns.
During a technical briefing on the LOK held on February 23, 2024, Silvania introduced his "investors" from Malta, tasked with implementing the new legislation. He claimed that Curaçao lacked the necessary expertise, but questions quickly arose: What promises had Silvania made to these investors?
While Silvania portrays himself as a champion of transparency, the selection process for these foreign investors lacked clarity. This has led to doubts about the legitimacy of the decision to seek external expertise, especially since there is no evidence to support Silvania’s claim that qualified local specialists are unavailable.
Additionally, Silvania has stated that the involvement of the Gaming Control Board (GCB), a 'private' foundation, is a private matter. However, the specifics of what he has promised these investors remain unknown. He argues that hiring local experts, potentially linked to the online gaming sector, could create conflicts of interest.
His assertion that the involvement of the foreign advisors is only temporary has raised suspicions. There is no concrete information about their selection process, contractual terms, or the costs of their services. This has led to speculation about whether these advisors might have long-term interests in Curaçao, sparking further questions about who will truly benefit from the revenues generated by licensing fees.
The lack of transparency and the uncertain nature of these foreign partnerships leave many wondering if the new ordinance will genuinely serve the interests of Curaçao or if it is merely paving the way for external parties to profit at the island's expense.
The Advisory Council has expressed significant concerns about the Gambling Ordinance (LOK), highlighting its lack of detailed regulations, such as clear rules on substance requirements and supervision criteria. This absence could lead to arbitrary enforcement of the law. Another point of concern is the substantial autonomy granted to the Curaçao Gaming Authority (CGA) over its financial reserves, without independent oversight. This raises doubts about whether the Curaçaoan population will genuinely benefit from the ordinance and how conflicts of interest will be avoided.
The lack of transparent control over the CGA's income and expenditures questions the economic benefits of the LOK for Curaçao. Minister Javier Silvania reported that only NAf 5.9 million had been deposited into the national treasury by September 30, 2024—significantly less than projected. This discrepancy raises the critical question: who is receiving these funds, and how much is actually left for Curaçao? Without transparent control mechanisms, it appears that the Curaçaoan public may be financially shortchanged.
There is a risk that the hasty implementation of the LOK could result in a legal framework that does not comply with FATF standards and EU regulations. Without structural compliance and proper oversight, Curaçao remains vulnerable to money laundering and other illicit activities. This could further weaken the country’s already fragile standing, as it remains on the "grey list," with potentially severe consequences for economic relations with European and other international partners.
Good governance demands transparency and accountability to the public. The involvement of foreign parties in such a crucial economic sector necessitates clear communication from the government about the choices made and their implications. However, Silvania has so far provided little clarity about the conditions for license holders, the precise role of foreign advisors, and the long-term strategy for the sustainable development of the gaming sector.
Conclusion: Time for a Review
The current implementation of the LOK is deeply concerning. Without robust oversight, transparent procurement processes, and a clear regulatory framework, Curaçao risks creating a situation where the costs and risks of the gaming industry could quickly outweigh its benefits. This calls for a reassessment of Silvania's current plans. Meanwhile, more than half of the gaming sector has already turned its back on Curaçao.
It is crucial that this sector genuinely contributes to Curaçao's prosperity and stability rather than merely serving the interests of foreign investors. It is the minister’s responsibility to ensure a reliable and fair system that benefits the population without compromising integrity and transparency.
The time for politely requesting information from Silvania has passed. It is essential that this information be made public and that any potential mismanagement be fully investigated.
