WILLEMSTAD – Concerns about the independence, staffing and legal authority of Curaçao's gambling regulator were raised well before the recent controversy involving foreign consultants and a major data breach at the Curaçao Gaming Authority (CGA). Official advice issued during the preparation of the country's new gambling legislation shows that the Advisory Council had already warned the government about the need for sufficient internal expertise, clearly defined supervisory powers and safeguards against conflicts of interest.
The warnings were included in advice issued on August 22, 2023, and March 5, 2024, during preparations for the National Ordinance on Games of Chance (LOK).
The legislation was intended to fundamentally reform Curaçao's international online gambling industry by replacing the former private sublicensing system with direct government licensing and supervision.
However, the Advisory Council questioned whether the regulator would have sufficient personnel and specialized expertise to carry out its expanded responsibilities.
In its August 2023 advice, the Council emphasized that the CGA needed to have enough qualified employees from the moment the new legislation entered into force.
It asked the government to clarify whether recruitment was progressing according to schedule and whether the organization would be capable of handling the expected workload.
The Council also questioned whether the regulator possessed the expertise necessary to assess different types of gambling license applications and accreditation requests independently.
Those concerns have gained renewed significance following disclosures that foreign private companies were involved in substantial parts of the CGA's licensing process.
Council Demanded Clear Legal Safeguards
In additional advice dated March 5, 2024, the Advisory Council addressed the legal framework governing supervision by national and international institutions.
The Council argued that the government needed to clarify the legal basis under which international organizations could perform supervisory duties in Curaçao, particularly when their activities could eventually lead to administrative or criminal sanctions.
It also called for safeguards to ensure that supervisory institutions remained independent and impartial.
According to the Council, supervisory powers needed to be clearly limited, and the conditions under which external institutions could operate had to be properly established.
These recommendations concerned proposed cooperation protocols with supervisory organizations.
They did not directly assess the contracts later associated with Random Consulting or HSJ Consult.
Nevertheless, the advice demonstrates that questions about the independence of the regulator and the legal boundaries of external involvement were already being raised during the legislative process.
The distinction is important because not all activities performed by external consultants necessarily amount to the exercise of official supervisory authority.
Technical support, administrative assistance and professional advice may differ legally from activities requiring specific statutory powers.
The question is whether the work performed by foreign companies remained within the boundaries of external support or included activities requiring a separate legal authorization.
Foreign Consultants Became Central to Licensing Process
The issue has resurfaced following revelations about the involvement of Malta-based Random Consulting and Cyprus-based HSJ Consult in the CGA's licensing operations.
Random Consulting developed and supported the regulator's digital licensing portal and assisted with application processing and document checks.
HSJ Consult conducted suitability assessments and prepared recommendations concerning the approval or rejection of gambling license applications.
The CGA has confirmed that HSJ Consult began providing these recommendations under a service agreement in late 2023.
According to the regulator, its own personnel reviewed the recommendations before final decisions were made.
The CGA has also maintained that its employees were involved in assessments from the beginning and that the organization has developed additional expertise over time.
However, the precise division of responsibilities between CGA personnel and external consultants has not been fully clarified publicly.
It remains uncertain which activities are now performed internally and which continue to be outsourced.
These unanswered questions are particularly relevant because the LOK was intended to strengthen direct government control over gambling operators.
Under the former system, private master license holders played a central role in authorizing international gambling businesses through sublicenses.
The new legislation transferred formal licensing authority directly to the regulator.
While the foreign consulting companies did not possess the legal authority to issue licenses, their involvement in preparing assessments has raised questions about the regulator's practical independence.
Government Announces Independent Investigation
The controversy has intensified following a major security breach involving the CGA's licensing portal and the termination of its cooperation with Random Consulting.
The regulator discontinued the affected portal on October 7 and introduced a temporary replacement on October 19.
The incident exposed serious concerns about the management of confidential licensing information and the security of systems used in the regulatory process.
Prime Minister Gilmar Pisas has since announced an independent investigation into developments at the CGA.
According to the prime minister, ten international investigation companies are being considered for the assignment.
The investigation could provide an opportunity to examine broader questions about the regulator's organization, including its dependence on foreign consultants, the selection of external advisers and the safeguards governing their involvement.
It remains to be seen what the final scope of the investigation will be.
Questions have also been raised about possible commercial relationships between external consultants and businesses operating in the gambling industry.
There is currently insufficient information to determine whether all potential conflicts of interest were identified and appropriately managed.
The earlier Advisory Council warnings provide important context for these concerns.
They show that the need for adequate staffing, professional expertise, independent supervision and clearly defined legal responsibilities was recognized before the new gambling framework became operational.
The challenge facing the government is now to demonstrate that those requirements have been adequately addressed.
The outcome of the announced investigation may help establish whether the CGA has the personnel, expertise and institutional independence necessary to supervise Curaçao's international gambling industry without excessive reliance on private foreign companies.
For Curaçao, the broader issue goes beyond the security breach or the departure of individual consultants. It concerns whether the reform has created a regulator that exercises genuine independent oversight in practice, as well as on paper.