Curaçaos Innovative LOK Initiative Sets New Industry Standard

As of December 24, 2024, the new Landsverordening op de kansspelen (LOK), translated as the National Ordinance on Games of Chance, has officially taken effect, signifying a crucial reform in the regulation of Curaçao's online gaming sector.

This legislation has been crafted to address longstanding issues and challenges within the industry, aiming to create a safer, more transparent, and well-regulated environment for all involved parties.

Acknowledging the sector's issues and challenges, the Gaming Control Board (GCB), acting on behalf of the Minister of Finance, initiated a phased reform of the online gaming regime in November 2023, setting the stage for the implementation of the LOK. These efforts demonstrate a dedication to continuous improvement while tackling existing problems. While not all issues can be resolved simultaneously, the introduction of the LOK as a pivotal element of the reform represents a significant stride towards a more robust gaming legal framework.

With the enactment of the LOK, the GCB will be rebranded as the Curaçao Gaming Authority, reinforcing its role in supervising and regulating the gaming industry under the new legislation as a more autonomous entity in the realm of online gaming.

What are the requirements?

Central to this reform is the establishment of the Curaçao Gaming Authority (CGA), which replaces the Gaming Control Board (GCB) as the independent regulatory body. The CGA will oversee both B2C operators and B2B suppliers, ensuring compliance with:

• Stricter anti-money laundering (AML) protocols
• Enhanced responsible gaming requirements
• Stronger protections for players by enforcing stricter responsible gambling protocols, ensuring that operators are held accountable for safeguarding vulnerable individuals.

Key Changes Under the LOK

The LOK introduces significant changes to licensees in Curaçao:

• Tackling Unregulated Gambling: The LOK directly addresses illegal gambling activities by ensuring that only entities with a valid CGA-issued license can operate in or from Curaçao's borders. Performing gambling activities in or from Curaçao without a CGA-issued gaming license is strictly prohibited. Additionally, licenses granted under the LOK are non-transferable and strictly prohibit other parties from operating under the same license.
• Improving Financial Integrity: LOK introduces financial transparency requirements, aiming to prevent fraud and money laundering within the gaming industry.