Curaçao authorities tighten rules for issuing gambling licenses

The Caribbean is a paradise for a comfortable and affluent life. The climate is mild and pleasant, all conditions for leisure are in place, banks are willing to open accounts for non-residents, and taxes are low or even nonexistent. Given these factors, it's no surprise that the Caribbean region has become a hub for the gambling industry. While Monaco, Las Vegas, Macau, and Monte Carlo have retained their elite status, they are hardly present online.

Another reason for the declining popularity of traditional gambling centers is the strict policies of national regulators and global trends related to KYC/AML. Obtaining a gambling or betting license in the U.S., reputable European, or Asian jurisdictions is challenging. Using online casinos for money laundering has become even more difficult. Engaging in such activities can quickly lead to losing a business license and becoming involved in a high-profile criminal case.

Gambling licenses previously issued in Curaçao were a completely different matter. The level of oversight in this island jurisdiction was less stringent, and compliance with anti-money laundering regulations was not as strictly monitored. As a result, Curaçao authorities were often accused of enabling financial crimes. However, no direct evidence was ever provided, and cases rarely escalated into large-scale investigations.

Obtaining a gambling license was relatively simple, which attracted entrepreneurs looking to enter a promising and profitable market. The fact that the industry was classified as high-risk did not deter them, as opening corporate bank accounts posed no significant challenges.

Deoffshorization in Action

However, around 10–15 years ago, the situation began to change. Society was made to understand that offshore jurisdictions were inherently bad, leading to inevitable systemic shifts in the established world order. Opening accounts for companies engaged in high-risk businesses (from the banks' perspective) became increasingly difficult. Financial institutions then started requiring legal entities to have a real economic presence in the country where they were opening an account. The "unpleasant" term substance emerged, and serious discussions began in Switzerland, Luxembourg, and Monaco about the end of banking secrecy.

Then things escalated further. The next target was economic citizenship programs. The final blow came in the fall of 2020 when Cyprus faced the consequences of an independent investigation conducted by Al Jazeera journalists. It revealed that "Golden Passports" and "Golden Visas" were often granted to questionable individuals. Purchased citizenship or residency permits allowed people to evade taxation and bypass international sanctions, a problem that primarily affected Russian nationals.

As a result, by the beginning of fall 2023—when Curaçao announced stricter licensing policies—the outlook for offshore jurisdictions and everything associated with them was bleak. Banks were scrutinizing every potential non-resident client under a microscope, opening a corporate account had become an extremely difficult quest, and cash transactions were increasingly being limited to a negligible maximum of €10,000.

Optimism and faith in a bright offshore future were finally shattered by a massive information bomb on October 3, 2021, near the tail end of the two-year global stagnation caused by COVID-19. The "Pandora Papers" (also referred to as the "Pandora Archive" or "Pandora Documents") were essentially a collection of classified records and sensitive data accessed by journalists from the International Consortium of Investigative Journalists (ICIJ).

Even without going into details, the findings were staggering. At least $32 trillion was securely hidden from fair taxation—and this figure excludes real estate, works of art, and precious metal jewelry. The investigation exposed sitting leaders from 35 countries and 400 prominent politicians from 100 nations as being involved in suspicious financial dealings. The most common violations included money laundering and aggressive tax avoidance strategies.

Curaçao: So Much in This Bet...

The tightening of licensing policies was initially presented as an optimization of budget revenues. There is some logic to this. Curaçao has officially and legally registered significantly more gambling companies than Malta, yet its financial inflows are dramatically lower—by a factor of 100 (which is already two orders of magnitude!). Consequently, if stricter control is imposed on the issuance of gambling licenses, Curaçao’s budget should receive additional funds. However, this is merely the official version.

The second reason for the policy shift is not directly related to financial flows; it stems from the global regulators' pathological aversion to offshore jurisdictions. Curaçao is a classic tax-free zone, and obtaining a gambling license (especially in the sub-license format, which is crucial) has been extremely simplified. If a legal entity is registered before 2026, its corporate tax rate will be only 2% of profits. The minimum deposit requirement is also negligible—just $35,000. The regular licensing fees amount to $5,700. For a company planning to engage in gambling or sports betting, these figures are practically insignificant.

The problem for Curaçao is that gambling, in any form, is a potential source of financial misconduct. In theory, an online casino could be used as a massive laundering machine, where illicit funds are "washed" clean. At the end of the process, the criminals behind the scheme receive sterilized assets that would not raise any red flags with any financial security authority. While we cannot definitively state that Curaçao’s previous gambling licenses were merely a legal cover for gray laundering schemes, the possibility certainly existed.

How beneficial the pre-September 2023 licensing system was for Curaçao’s authorities remains unknown. However, considering that Curaçao became the world’s informal gambling hub for a reason, one could assume that the status quo suited all interested parties.

Nevertheless, it was clear that sooner or later, the situation would change—the only question was how strict the new regulations would be. While the full picture is still unfolding, the actions of Curaçao’s government confirm the most pessimistic expectations. On December 17, 2023, the LOK bill (National Ordinance on Games of Chance) was approved by Curaçao’s Parliament, and three days later, on December 20, the document was officially enacted into law.

"You asked — we delivered..."

If the second version is correct (and all the facts confirm it), then LOK is a forced law adopted under pressure. Curaçao authorities would have preferred to leave things unchanged, since gambling and betting licenses provided significant budget revenues. But when LOK takes full effect, those revenues will shrink, and there will be no alternative to cover the shortfall. However, the risk of ending up on the FATF or OECD “black” or “gray” lists is a far graver threat. That is why Curaçao’s authorities chose an unpopular and disadvantageous option.

The most significant changes in the rules for issuing gaming licenses in Curaçao are as follows:

• The previously adopted regulatory document (NOOGH) is no longer in force; it is completely replaced by LOK.
• The specialized national portal — GCB (The Curaçao Gaming Control Board) — is back online.
• The validity periods of all issued master licenses (a total of 4) had expired by the time this article was prepared. Renewal or issuance of new ones is now impossible.
• The former licensing system (based on master and sub-licenses) has been canceled. Now, two types of gaming permits can be issued in Curaçao: B2B and B2C, both focused on online operations.
• All gambling business operations (including the issuance of permits) will now be handled by a new agency — the Gaming Administration.
• Applications for gambling licenses can now be submitted remotely.
• The license validity period has been reduced to 1 year (with the possibility of renewal).
• The requirements for gaming operators have been tightened; they are now required to adhere to due diligence standards.
• Financial requirements for legal entities seeking a gambling license have been significantly increased.
• The physical presence of the company in Curaçao is now mandatory. While no one has yet mentioned the introduction of substance, a physical office is already required.
• The Curaçao government now has access to data on all companies that have obtained gaming licenses.
• The commercial activities of all legal entities that previously obtained sub-licenses are now illegal.
• Obtaining licenses for developers of specialized software for online casinos is now mandatory.
• Government fees have increased substantially. The minimum payment is $66,000 plus $3,900 monthly, and an additional domain name costs $280 per year.
• Staff requirements have been tightened. At least 3 employees must be Curaçao citizens, and separate specialists will oversee compliance with AML/CTF regulations.
• The rules for monitoring and verifying the shareholders, key personnel, and beneficiaries of a legal entity involved in gambling have been tightened.
• The CGA has taken over the control of payout verifications. If significant or repeated violations are discovered, the license may be revoked.
• The transitional period will not be overly long. Companies that have submitted license applications will be able to obtain temporary permits (with an orange digital seal), but this does not eliminate the need to obtain the standard permit (with a green seal).

The Ubiquitous AML / CTF

The choice between "comply with anti-money laundering recommendations or ignore them" is no longer an option for offshore jurisdictions. In the realities of 2025, tax-free countries must tackle a more complex issue: maintaining their attractiveness for investors and businesses without “falling out” with FATF, OECD, and the ever-present OFAC. The minimum requirement is to report compliance with AML / CTF recommendations.

Curaçao is no exception. The offshore government has declared its commitment to fully combating money laundering and terrorist financing. Additionally, it promises effective player protection at the state level. How these well-intentioned commitments will be implemented in practice remains an open question.

What the Curaçao Government Promises:

• Compliance with AML / CTF standards.
• All gaming operators must adhere to goAML rules (a specialized risk management financial platform developed with UN involvement).
• Enforcement of fair gaming rules.
• Mandatory certification for all participants in the gambling market.
• Implementation of fair mechanisms for resolving disputes.
• Prohibition of delegating licenses to third parties and/or organizations.
• Development of recommendations for online casino operators (essentially mandatory requirements).
• Stricter requirements for legal entities seeking gambling or betting licenses.
• Mandatory company registration in Curaçao to obtain a license.
• Independent verification (appointed by CGA) of all software and hardware used.
• Strengthened control measures concerning security and transparency.
• Operator/licensee information (license issuance date, list of games, declared rules, winning odds, address, contact details, complaint submission options, etc.) will be made publicly available.
• Mandatory audit checks of licensees (periodic but without a fixed schedule) conducted by CGA experts.

Personnel Decide Everything

Previously, companies hiring staff relied solely on internal rules and regulations. The Curaçao authorities did not regulate employee requirements, even though the gambling industry posed ongoing risks for customers (players). The LOK law establishes a stricter framework for personnel management. The Curaçao government believes that the new licensing rules will help reduce risks and ensure compliance with AML / CTF regulations.

Key Changes Regarding Company Officials and Hiring Practices:

• Key employees must have relevant qualifications and experience (specific requirements have not yet been established).
• Key personnel must reside permanently in Curaçao (citizenship/residency requirements have not yet been specified).
• The law defines key employees who influence company operations (CEO, CFO, COO, CTO).
• To obtain a gambling license, a company must officially employ several staff members (both foreigners and Curaçao citizens/residents).

Changes in regulatory requirements for personnel represent one of the most significant challenges among all the proposed reforms. Curaçao has a relatively small population—just over 150,000 people—making it difficult to find individuals who meet all the necessary requirements.

Another complication, particularly “inconvenient” for gambling and betting companies, relates to labor laws, which must be strictly followed. This includes mandatory social contributions, official employment contracts, paid leave, decent working conditions, insurance, and a minimum wage. Many companies that previously operated under sublicenses may struggle to meet these requirements.

"Boss, Everything is Lost! Everything is Lost!"

The biggest challenge posed by the proposed reforms is the redistribution of financial flows. Previously, companies holding a master license collected rental payments directly from sublicensees. This system effectively excluded the Curaçao government from financial oversight, making it significantly easier to launder dirty money and engage in various financial and tax manipulations.

However, in 2025, the financial landscape will change dramatically. Now, all licensing payments will go directly into the state budget of Curaçao. Given the significantly increased costs, it is logical to assume that the numerous intermediaries who facilitated massive money laundering operations will now have to find another line of work.

The impact of these changes on Curaçao’s budget remains unclear. If fewer companies apply for licenses, the gambling market may shrink. Some operators might opt for jurisdictions with less stringent oversight, fearing even stricter regulations in the future.

Conclusion and Key Takeaways

If you are developing a project that involves obtaining a gambling license in Curaçao, you are likely asking yourself: “What should we do next?” Should you choose a different jurisdiction with less stringent regulatory control? Shift to another line of business? Ignore the new regulations and hope that the pre-2023 status quo will eventually return?

Unfortunately, there are no easy answers to these difficult questions. The future of gambling licenses in Curaçao remains uncertain, and the law passed in late December 2024 contains multiple ambiguous areas with no official interpretations yet.

We believe the least risky approach is to wait. Regulatory authorities are expected to release comments and practical guidelines on the applicability of the new law soon. Once that happens, there will be more information for analysis. But one thing is clear—the world of international business will never be the same again.

On the other hand, it would be a mistake to view offshore jurisdictions as outdated structures. As long as companies comply with AML / CTF regulations, operate transparently, and avoid aggressive tax optimization strategies, there should be no issues. This principle applies to any offshore company, and gambling businesses registered in Curaçao are no exception. The best course of action is simply to wait for further clarification.

If you have any questions about obtaining a Curaçao gambling license, feel free to send us an email or contact us through any convenient channel.