The tiny island nation of Curaçao has succumbed to pressure from the Netherlands by agreeing to tighten gambling licensing rules. This could have a massive effect on the several thousands of online casinos and betting sites who currently operate on Curaçao issued licenses.
Financial support with obligations
This latest move comes as Curaçao reported financial struggles throughout the pandemic due to a lack of tourism. They have been receiving financial backing from the Dutch government but they have recently informed them that this will now come with obligations.
The obligations have been outlined in the Country Package (Landspakket) which has been agreed between the governments in the Netherlands and Curaçao.
There are a few conditions that the government must agree to before accepting any license requests from operators. This includes forming a new independent regulator who will oversee any licensing decisions. This must come into place by March 2021.
Curaçao operators will also no longer be allowed to accept players from other regulated territories. This excludes a few countries who accept licenses that are issued in Curaçao. There will need to be a plan in place to determine how this will be monitored by September 2021.
This will also mean that operators with a Curaçao license will be unable to target players from the Netherlands. This is due to a recent reorganisation of the gambling market in this country.
Any locally licensed gambling operators will also be required to pay license fees and corporate taxes. This is a big change from what is already in place.
What does this mean licensees?
This news will come as a massive blow for operators and affiliates with a Curaçao license or those hoping to obtain one. These changes will come into effect next year but we all must be aware of what it might mean for businesses.
With taxes coming into place and tighter regulations, operators and affiliates will likely see a drop in profit over the next few years.