New gambling legislation in Curaçao will bring various benefits to players, and one of the most important, as Minister of Finance Javier Silvania claims, is creating a “safety net” that will prevent grey-listing in the country.

Applications open

The National Ordinance for Games of Chance (LOK) will be in charge of that, and it will completely change the gambling scene in Curaçao. The Gaming Control Board (GCB) has already opened the license application portal, which has been active since September 1st. On top of that, the body got a new advisor, Hilary Stewart-Jones.

The Board will accept applications from November 17th, and the ones who get the interim Curaçao license after which they’ll have six months to submit all required documents. According to Silvania, the risk of grey-listing is huge if anti-money laundering systems are weak.

After Gibraltar became a part of the Financial Act Task Force’s grey list, Silvania got worried. He said: “In particular, the FATF criticized the government’s failure in applying sufficient fines for anti-money laundering failings. AML is a key criteria of financial evaluations, one of which Curaçao will be subject to next year. And let me be very clear about it: the likelihood of us being placed on the grey list because our lack of AML legislation within the gambling sphere is real, and it is worrying.”

If Curaçao follows Gibraltar’s footsteps, many problems await. Among the most concerning ones are restrictions, or even the prohibition of trade from some companies and governments, which would greatly impact the country’s economy.

However, the gambling and gaming industries will remain in the same shape after the legislation is approved.

Silvania addressed it: “To those who have apprehensions about this legislation – I hear you. Changes are always met with skepticism, especially when they impact long-established practices. However, for all the operators out there, our intent is not to disrupt but to elevate.”

Priorities and benefits

The new system will definitely change the country’s economy, but it’s not only when it comes to revenue. In 2022, Curaçao earned €250.000. Compared to Malta, which earned €82 million, the revenue could get higher, but not only numbers are speaking – Silvania thinks that the two countries have different approaches and priorities when it comes to the gambling industry.

However, the workers currently employed in the hospitality industry will benefit from the new legislation since it will create more jobs.

Silvania finished: “The intent of our efforts to revitalize the legislative landscape is to develop Curaçao as a center of excellence in the gambling industry. This pushes the envelope for employment opportunities, and in fact there are many individuals and businesses out there who have no idea of the opportunities that are coming their way.”

Source: O’Hagan Marese, “LOK provides ‘safety net’ from grey-listing, says Curaçao Minister”, iGB, September 27, 2023

The post LOK Is Working on Preventing Grey-listing in Curaçao appeared first on Keno Wizard.

The new hub has been published on UKGC’s platform under the “Compliance” tab. Its main purpose is to help operators collaborating with entities that are not licensed to fulfill their duties and carry on their responsibilities with more ease. 

Last month, the Commission announced its intention to fill in evidence gaps under the 2023-2026 plan, as a result of the much-anticipated launch of the White Paper. 

Offering Guidance and Information

The new test hub offers clear definitions of both the responsibilities and expectations of operators who do business with white-label partners and other parties that are not running under valid licenses. 

Information regarding the recommended practices that operators should follow to make sure that all Licence Conditions and Codes of Practice (LLCP) are carried out efficiently is also part of the new hub.

The decision to launch the hub in its testing phase came after the Commission imposed a number of fines and other punitive measures on several operators who had failed to conduct due diligence checkups on contracted third parties they were running contracts with. 

As a result, UKGC licensees have asked for a thorough review of the LLCP in order to determine the best regulations that would express the obligations that all gambling operators should comply with when working together with third parties. 

According to UKGC, licensees are directly responsible for the third parties they choose to collaborate with, which means the need to make sure the latters’ operations are perfectly aligned with these license conditions and codes of practice.

Operators Must Check Their Partners’ Reliability and Competence

As per the recommendations in the new test hub, gambling businesses should perform a series of due diligence inspections on all the third parties they currently work with or which they plan on working with in the future to determine their levels of trustworthiness and competence. 

Additionally, the commission asks all licensees that rely on third parties to conduct any aspect of their business in relation to the licensed activities to ensure they have “sufficient oversight and controls in place to ensure all activities are carried out in accordance with the LCCP, notably, but not exclusively, social responsibility and anti-money laundering requirements.”

Operators who fail to effectively control the third parties they work with could be subject to regulatory actions including the loss or temporary suspension of their license to operate in the UK. 

The information in the new hub also explains that online gaming operators holding a license are exclusively responsible for the compliance of all of their gambling platforms, including white-labeled websites, and that the responsibility cannot be transferred to other parties.

In May, the Commission fined SkillOnNet $380,000 over a series of license breaches. In January, TonyBet was given a $550,000 fine over a number of similar breaches. 

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