Curaçao: New Exit Rules Aim to Clean Up Market and Protect Players

Curaçao, long known for one of the most liberal gambling licenses, is taking a significant step by tightening its exit rules for online gambling providers. The Curaçao Gaming Authority (CGA) has published detailed instructions on how B2B suppliers and B2C operators must leave the regulated market. This is a clear signal that the Caribbean island intends to polish its tarnished image and raise protection standards.

Player claims and public debts remain active even after gaming operations cease. This new regulation covers various scenarios, from voluntary license surrender to forced revocation or rejection of license renewals. It is an effort to shed the 'Wild West' image and create more reliability.

Numbers and facts

When the CGA rejects a second-term provisional license or an application for an indefinite license, the company has precisely six weeks from the date of the rejection letter to complete an orderly wind-down. This period is explicitly not a grace period for continued gaming activity. The licensee must immediately stop using the CGA seal, accepting new business, servicing existing contracts, onboarding players, and allowing existing players to wager. A completed wind-down report must be provided to the regulator at the end of the six-week period. The CGA will then assess the contents of the report. Enforcement revocation triggers immediate operational restrictions. These include stopping the acceptance of new business, the registration of new players, and the ability for existing players to wager. Even if gaming activity ceases, the underlying Curaçao company and its civil law obligations remain. This includes player claims and other liabilities.

"There is little doubt that Curaçao’s judicial reform is an extremely positive development with clear advantages for players, operators and the jurisdiction itself." - Gambling Insider Editorial Staff

Background

Curaçao has a long history of liberal gambling laws, formalized in 1993. This lax regulation, combined with benefits such as 0% tax on foreign-sourced income and no VAT, quickly made it a popular choice for gambling start-ups. However, this approach also led to a flawed system. One issue was the so-called Master Licensystem, where four private companies received Master Licenses from the government and granted sub-licenses to B2C operators. This created a number of restrictions for operators, as payment service providers often did not recognize sub-licenses, forcing companies to establish subsidiaries in EU countries like Cyprus to process payments. The lack of oversight by the Gaming Control Board (GCB) and the Master License holders themselves contributed to ineffective anti-money laundering measures and a lack of enforcement, damaging Curaçao's reputation over the years. The tipping point came with the Covid-19 pandemic, which severely impacted Curaçao's economy and prompted the country to seek assistance from the Netherlands. In return, reforms to the regulatory framework were demanded.

Why it matters for German players

For German players, who often unknowingly find themselves in unregulated online casinos, these developments in Curaçao are significant. While these casinos continue to operate outside the strict German Interstate Treaty on Gambling (GlüStV 2021), the new CGA rules at least increase player protection for those using Curaçao-licensed providers. However, providers licensed in Germany and listed on the whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL) offer a significantly higher level of security and are legally sound. There, strict requirements apply, such as a 1 Euro per spin betting limit on slot machines and a monthly deposit limit of 1,000 Euro, controlled by the central monitoring system LUGAS. These measures serve active player protection. Although Curaçao is striving to regain trust, German players should always opt for legal, GGL-licensed offers to be on the safe side. Only here is there certainty that German laws are complied with and individual player protection measures are in effect.

What it means for GGL-licensed casinos

The tightened rules in Curaçao underscore the necessity of robust regulatory frameworks. For GGL-licensed casinos in Germany, such developments indirectly strengthen their position. As jurisdictions like Curaçao try to raise their standards, the difference to strictly regulated markets like Germany becomes clearer, and the need for clear exit strategies for all providers is emphasized. German online casinos must meet high requirements anyway and are bound by comprehensive guidelines that regulate operation and also eventual termination of business. Player confidence in legally secure environments tends to be strengthened by such news, as the need for clear rules becomes evident. The GGL monitors not only ongoing operations but would also ensure an orderly withdrawal of a provider in the event of closure, in the interest of player protection. This creates a security that was often lacking in many foreign licenses, especially in the past.

New rules make it harder for providers to disappear quietly and give the CGA a clearer path to pursue unpaid claims across borders. This is an important, albeit late, step to improve player trust and the license's reputation. Current developments in countries like Thailand, which are reforming their gambling laws and aiming for a multi-billion dollar industry, show that the global market is highly dynamic. A study, for example, projected that legalized casinos in Thailand could boost annual tourism revenue by 394.7 billion baht. Transparent and responsible regulation is essential for this, wherever it may be.