Curacao Needs to Reform Gambling
The island of Curacao is home to many gambling operators. Unfortunately, they are also affected by the Corona pandemic and suffer financial problems. The Netherlands would support the island economically if the gambling providers adhere to certain conditions. These are required by the Dutch government. If the conditions are not met, government support could cease.
Netherlands Publishes Landspakket
The Corona pandemic hit some countries very hard, and that included the economy.
The island of Curacao was not spared the negative consequences of the Corona pandemic and is suffering financial problems.
For the Netherlands to continue to support the island financially, Curacao's economy must meet many conditions.
These were decided by the government in the Netherlands and also affect the gambling operators.
All conditions were published in the Landspakket, which contains a total of 47 measures.
Only some of these must be complied with by the gambling operators.
The most important conditions are:
- The island of Curacao has until March 2021 to establish a gambling authority.
- All gambling operators located on the island must comply with all current laws.
Interestingly, Curacao does not have a gambling regulator that issues licenses.
Nevertheless, numerous online casinos state on their pages that they have a license from Curacao.
The question is: Is it not true at all that the providers have a license from the island? No, they are not lying.
There is a peculiarity on Curacao: private telecom companies hold a license for gambling and are allowed to pass it on to online casinos and sports betting operators.
The catch, however, is that the telecom companies share responsibility for who they pass the master licenses on to.
If a gambling provider does not comply with the applicable laws, the telecom companies also face sanctions.
New Gambling Regulation in the Netherlands
Looking at the new regulations for gambling in the Netherlands, it really seems illogical why gambling operators on Curacao are not included.
The new law has decided that gambling providers in the Netherlands will operate legally from next year.
Online casinos are supposed to get a license if they pay particular attention to player protection.
Furthermore, there are strict rules for competition.
This is to prevent online casinos from recruiting new customers with dubious methods.
Such methods could encourage risky gambling.
Thus, the restrictions on competition also address player safety.
This may also be the reason why providers are no longer allowed to access existing data records.
If these regulations were extended to Curacao, a consistent picture would emerge.
After all, it is now required that all online casinos located on Curacao comply with the applicable laws.
Why Dutch customers are not allowed to be acquired is very illogical.
Curacao Is Very Popular with Gambling Providers
True casino fans may have already noticed it: There are numerous online casinos that have a license from Curacao.
One reason is the low tax rate: this island assesses only two percent tax.
This tax rate only applies to the profit generated. Moreover, there is no value-added tax.
The costs for a license are similar.
This currently amounts to 34,000 US dollars.
This amount is very low compared to licenses from other countries.
This leads to the fact that many online casinos strive for a license from Curacao.
However, it is not always easy to obtain such a license.
There are many conditions to comply with.
First and foremost, it is again about player protection.
Every player should be protected from criminal activities.
Furthermore, it must be ensured that all games are fair.
Only the online casinos that comply with all these regulations have a chance to get a license.