Curacao Gaming Law Reform: Overview of the 2023 Transition

Changes as of September 1, 2023

1. Applications for new master licenses for online gaming will be accepted and processed directly from operators in accordance with existing legislation;
2. An online portal for the Gaming Control Board (GCB) will be established for:
   • Receiving applications for new licenses;
   • Registering operators working under existing sub-licenses.
3. The portal will contain application forms and relevant information on the above, including application and registration requirements.

In light of these announced changes, the GCB will be authorized to:

1. Issue a license if the applicant’s activities ensure the safe, responsible, transparent, and reliable conduct of gaming in or outside of Curacao;
2. Suspend or revoke a license if there are grounds to believe that a company’s activities jeopardize the safe, responsible, transparent, and reliable conduct of gaming in or outside of Curacao;
3. Attach conditions and restrictions to the license that promote the safe, responsible, transparent, and reliable conduct of gaming in or outside of Curacao.

Obtaining the master Curacao gaming license

Obtaining a master license in Curacao under the new regulations involves several stages:

1. Preliminary Licensing Stage:
   • Verifying the personal data of directors and authorized persons;
   • Comprehensive business checks;
   • Verifying the company’s compliance with key policies and conditions.
2. Post-Licensing Stage:
   • Monitoring of the operators who have obtained the license;
   • Within 6 months from the issuance of the license, licensees are required to conduct necessary checks and provide data to the GCB;
   • Confirmation of the reliability of new licensees, directors, and other authorized persons;
   • Reports on significant incidents.

Who can apply for a Curacao license?

Any applicant whose activities involve:

• Player registration and verification;
• Involvement in financial operations, management of player funds (deposits and withdrawals).

B2B vs. B2C Licenses

Curacao’s new regulatory framework clearly distinguishes between two license types: B2B (Business-to-Business) and B2C (Business-to-Consumer).

B2B License:

• Purpose: For companies providing products or services to other gambling businesses, not directly to players
• Target Audience: Software developers, game providers, payment processors, and platform providers
• Fees: EUR 4,600 application fee + EUR 24,600 annual fee (no monthly fees or domain fees)
• Compliance: Technical standards and software certifications, but no direct player protection obligations
• Restrictions: Prohibited from direct player engagement

B2C License:

• Purpose: For operators offering gambling services directly to players
• Target Audience: Online casinos, sports betting sites, lottery operators, and any company that manages player funds
• Fees: EUR 4,600 application fee + EUR 24,600 annual fee + EUR 2,050 monthly fee + EUR 250 per domain annually
• Compliance: Stricter requirements including responsible gaming tools, AML/KYC procedures, and player fund monitoring
• Requirements: Local presence in Curacao, including at least one physical server

The separation of these license types enhances regulatory clarity and ensures that compliance obligations align appropriately with each business model’s risk profile and operational scope.

Applicant Requirements

1. The applicant must register through the GCB portal;
2. Applications can only be submitted by legal entities registered in accordance with Curacao legislation and having a registered office in Curacao;
3. All required forms, information, and documents should be submitted through the GCB portal;
4. All necessary data and documents regarding the applicant and the company’s activities should be provided;
5. Equipment and software must be tested by an independent inspection body approved by GCB;
6. Equipment and software must be regularly maintained;
7. An up-to-date list of equipment, software, and proposed games must be on-site and ready for inspection;
8. Security clearance must be successfully passed;
9. The conditions for obtaining the license must be met.

To apply for a Curacao license, you must fill out an application on the website in several stages. Some application forms may require additional documents to confirm the information.
The requested information may include:

• Applicant’s details;
• Brand name;
• Used domains;
• Business model;
• Type of gaming activity;
• Player account details;
• Details about fund management;
• Currencies used;
• Cash transactions (directly or through intermediaries);
• Server location;
• Gaming delivery channels (PC/mobile devices);
• Information about game providers;
• Information about the applicant’s criminal record;
• Information about the applicant’s address and citizenship;
• Applicant’s positions held;
• Detailed information about local representatives;
• Company information (name, local address, registration number, date of establishment, etc.);
• Company history (launch, business expansion, relocation of operations from another jurisdiction, existing activities licensed in Curacao);
• Source of financing;

It’s worth noting that within 6 months of obtaining a Curacao license, licensees are required to undergo procedures to verify all player data, accounts, funds, game fairness, information security, and provide this data to the GCB.

Documents required for submitting an application

1. Original or certified copy of the birth certificate;
2. Original or certified copy of the passport and/or identity document;
3. Original or certified copy of recent police clearance and/or protocol regarding the applicant (certificate of no criminal record); Documents must be provided for each jurisdiction in which the applicant has resided for more than six months in the past two years;
4. Certified authentic copies of any gaming licenses issued to the applicant in any jurisdiction;
5. Original or certified copy of a letter from a credit institution/bank or bank statement (issued within 6 months from the date of this application);
6. Original or certified copy of a utility bill or bank statement showing the current address of the applicant or any other document confirming the residential address;
7. Declaration and confirmation of the source of funds and source of income of shareholders.

Timelines and the validity period of the Curacao gaming license

The decision-making process typically takes two months from the date of receiving all the necessary documents and your application.

As of today, a Curacao gaming license is valid for one year.

What to keep in mind?

It’s important to note that a Curacao license holder is obligated to provide access to the following information:

• License holder’s information;
• License issuance date and its validity period;
• Address of the license holder, contact details, and customer support contact;
• Links to their terms and conditions;
• Verification of age restrictions (prohibition of participation by minors);
• Gambling activities organized by the license holder, including info about game rules, odds of winning, method of determining odds, and payout percentages;
• Informing players about gambling addiction and where they can seek help if they believe they have a gambling problem;
• Complaint procedures;
• The timeframe in which winnings become available after the conclusion of the game;
• The ability for players to limit their bets or participation;
• The ability for players to self-exclude from participation, registration, and receiving marketing materials.

Curacao gaming license cost

For all license holders, the license fee amounts to ANG 96,000 per year (approximately EUR 49,000). This fee is paid in monthly installments of ANG 8,000 per month (around EUR 4,100).
New license holders will also incur a domain fee for each additional domain, amounting to ANG 500 per year (approximately EUR 255) but not exceeding ANG 100,000.
Additionally, there is a fee of ANG 500 for each new registration of an ultimate beneficial owner (10%), qualified shareholder (10%), or key personnel of the license holder.

Curacao’s Corporate Tax Structure

Curacao offers an attractive tax environment for gaming companies, which largely contributes to its popularity as a licensing jurisdiction.

The standard corporate tax rate is 22% on profits sourced within Curacao. However, gaming companies registered as e-zone entities benefit from a highly favorable 2% corporate tax rate on net profits. This rate applies to income generated outside of Curacao, thanks to the territory’s territorial taxation system.

Additional tax benefits include:

• No gross revenue tax on betting turnover
• No VAT or sales tax on gambling services
• No withholding tax on dividend distributions to shareholders
• Tax exemptions on import/export duties for e-zone companies
• Investment incentives, including tax holidays for companies investing EUR 3 million or more and hiring at least 10 local residents

For international operators, Curacao has established tax treaties with jurisdictions such as Malta and the Netherlands, preventing double taxation and aligning Curacao’s regulations with EU standards. These tax incentives, combined with the regulatory reforms, cement Curacao’s position as a cost-effective hub for iGaming operators seeking a balance between taxation benefits and regulatory compliance.

Old System (NOOGH) vs. New System (LOK) Fee Structure

Key Benefits of the New License

The new Curacao licensing framework offers several advantages over the previous system. The direct licensing approach adds to Curacao’s market legitimacy and reputation by introducing stricter regulatory standards and eliminating the opaque master/sub-license system. This improved reputation benefits operators when establishing relationships with banks, payment processors, and potential business partners.

Additionally, Player protection standards have been substantially enhanced, with mandatory implementation of responsible gaming tools, independent game audits, player fund segregation, and transparent dispute resolution procedures. These measures protect players and also strengthen operator credibility.

The new framework’s alignment with international compliance standards facilitates easier entry into regulated markets worldwide. Regular audits and clear compliance requirements provide a pathway for operators to demonstrate their adherence to global best practices. Additionally, despite the higher fees, Curacao remains cost-effective compared to jurisdictions like Malta and Gibraltar, offering faster processing times (1-3 months) and comprehensive license coverage under a single license type.

Conclusion

Clearly, the jurisdiction of Curacao has been attracting entrepreneurs in the gambling industry long before these innovations. The country’s economy is not stagnant and is evolving in proportion to investors’ demands, striving to offer increasingly favorable conditions. In modern times, the Curacao government recognizes all the advantages of its position and is becoming a stronger competitor to other popular gambling jurisdictions. The changes in license issuance will open up numerous opportunities for entrepreneurs and provide a fresh stimulus to the gaming industry’s development.