Compliance Updates

Announcement from Curacao Gaming Control Board: Portal Authorisation Rights

Published

8 months ago

January 11, 2024

Reading Time: 6 minutes

Further to the announcement made by the Minister of Finance, entitled New Curacao Legislative Framework – Critical Milestones issued on December 20, 2023, the Curacao Gaming Control Board (GCB) provides the following information as to the authorisation rights regarding access and use of the GCB Portal.

We have become aware that there are issues arising from some misconceptions relating to the rights of access to and responsibility for the account relating to the application only, as distinct from the requirement of the GCB that they are notified about all current licensing arrangements and operational domains being used by Curacao operators (the so-called ‘census’) via a separate account.

We, therefore, intend that the term ‘licensee account’ is only used for an application account as distinct from a ‘census account’, which is only used to register domains and licenses some of which may never form part of a license application. Lest any confusion is caused we issue the following guidelines with effect from January 15, 2024. Specifically, we wish to add further clarity in connection with the terminology used on the portal.

A) Licensee Account

A licensee account is a portal-based account between a Curacao incorporated entity that wishes to apply for a license from the Curacao regulator under the National Ordinance on Offshore Games of Chance (NOOGH). The licensee account will form the primary point of formal interaction between any license holder and the GCB for the duration of the application purposes.

The licensee account is established only when a letter of authorisation has been submitted to the GCB. Licensee applicants will include (and may primarily comprise) those currently operating under a contractual arrangement with the master licensor (a sublicensee). However, they can include new applicants and master licensors wishing to operate themselves under the new transitional regime.

The letter of authorisation can only be signed by a person who may lawfully bind the applicant company (the lawful representative) whereby he/she/they appoints a representative who takes responsibility for gaming license application on the portal (the authorized representative).

Whilst acting as the authorised representative this person will also act as the portal administrator – see further below – with the ability to create other users with differing input and access rights. The authorized representative’s identity shall be entirely at the discretion of the applicant. The authorized representative can be, for example, an internal employee or director of the applicant, a third party with a pre-existing relationship (including but not limited to CSPs/existing directors/master license holders) or a third party with a trusted relationship (eg lawyers/accountants etc).

A couple of additional points to note:

1. The authorized representative will act as portal administrator and may create other user accounts but only as authorised by the lawful representative. The GCB will not require disclosure of this authorisation but the authorized representative must be satisfied the authority has been given.

2. Master licensors who are obliged to take part in the census (as referenced below) may open a census account in their own right and will also have portal administration rights save that they will have no right to apply for a license through the census account (unless they are also appointed as the authorized representative by the lawful representative on the license account) or they open their own license account and make an application on their own behalf.

3. In addition, should an authorized representative notify a census account holder that it intends as part of its application to use domains already registered as part of the census (a ‘prior census’) it can on notice to the master licensor census account holder request the transfer by the GCB of such domains from the census account that the GCB as super-administrator of the portal can effect, provided it is satisfied that the master licensor has been given notice by the authorized representative. If, however, it is later determined by the GCB that the authorized representative has acted in bad faith (for example, the applicant had no rights in connection with the affected domains) the GCB may take it into account in deciding whether to refuse the application and/or determine to restore the domains to the census account of its own volition (which may it also elect to do where the applicant does not proceed with its application).

4. Finally, where a licensee account (i) has been opened prior to the master licensor participating in the census, (ii) where a master licensor has been notified that a domain has been deleted (see further the footnotes below) or (iii) there has been a GCB-effected transfer of domains as per A(3) above, the master licensor must be given access by the authorized representative to its portal, (with the onus on the authorized representative to initiate) to ensure the information for which it (the master licensor) is responsible is correct for the purposes of the census. The master licensor’s rights in connection with each licensee account are ONLY access to the sublicensee section of the portal where the applicant’s details and domains are visible – not the online gaming application section itself (the master licensor will not, of course, have any connection to census requirements relating to non-sublicensee applicants).

The authorized representative is responsible for the overall portal information input access rights and administration.

Note too that:

Any licensee account applicant can apply for one or more licenses under the one account.
Any UBO(s) can have one or more licensee accounts for separate operations through separate Curacao incorporated entities. UBOs may well have several independent investments in operational companies for example. However, it is worth noting that personal information disclosures of the UBOs will not need to be replicated for every new license as after the first application the UBO will be ‘known’ to the GCB, subject to any updated disclosures that may have a bearing on the license decision.
Any applicant can use unlimited domains associated with that license.

The portal, therefore, shall presently enable multiple persons to access a single licensee account or census account (see further below) albeit with the above strict parameters only afforded to portal administrators.

B) Mandatory Sublicensee Registration Under NOOGH

1. As per the above, the master licensors are obliged to register the sublicensee and their associated domains on the GCB portal pursuant to the so-called ‘census requirements’ in order to give the GCB visibility over current operations.

2. Given it is the master licensor’s responsibility to ensure the information is (i) accurate and (ii) complete, the GCB will require limited proof of authority in connection with the appointment of the representative with delegated responsibility for the census account (the census representative) other than the confirmation by way of digital signature of the master licensor on the census letter of authority when it opens its census account for each sublicense and related domains operating under the purview of its license. This will not require the GCB to be satisfied that the signatory on the census letter of authority has the right in law to bind the master licensor and the GCB will be satisfied by what appears to be ostensible authority. As with the license account and authorized representative, the census representative can be any suitably qualified third party.

3. Full cooperation for the census is mandatory for the master licensors, save where A(4) above applies and the master licensor acting reasonably is satisfied that the license application associated with domains referenced under A(4)(i) and (iii) above has been made. Failure to do so will mean the impacted sublicensees will need to cease to operate under their associated master license by March 31, 2024, (i). This means that as at March 31, 2024, if a sublicensee is not on the census with associated domains the master licensor’s contractual support for such sublicensee’s domains must cease, unless the master licensor is satisfied (acting reasonably) that an application has been made by a sublicensee to the GCB with domains which would otherwise have formed part of the census.

4. As referenced above where there is no prior census relating to particular sublicensee and related domains, the license account takes precedence and obviates the need for the master licensor to open a census account relating to those domains provided the master licensor is granted access to the license account portal as per A (4) above.

Footnotes:

1. Where license applications have been submitted prior to this guidance and the GCB has doubts about the validity of legal authority of the lawful representative to authorise the application being made and the authorized representative being appointed (or removed), the GCB has the right to seek further due diligence in order to satisfy itself that the lawful representative was in full possession of all legal authorities, permissions and consents to take the actions he/she/they have undertaken.

2. The GCB may disable domains referenced in the census account or the license account where it appears that they are not active. The relevant census representative and authorized representative will be notified promptly.

3. The GCB may be requested to delete domains from a license account or a census account where the domain owner has been changed (with satisfactory demonstration of the ownership change having been given to the GCB.)

4. Templates of the letter of authority and the census letter of authority will be available on the portal from January 15, 2024.

Approved on January 10, 2024.

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Compliance Updates

The Danish Gambling Authority Has Had 79 Illegal Gambling Sites Blocked

Published

1 day ago

September 6, 2024

Niji Narayan

Reading Time: 3 minutes

On 22 August 2024, the court in Frederiksberg ruled in favour of the Danish Gambling Authority to have 79 websites blocked that offered illegal gambling to Danes.
Among the blocked websites are sites that are particularly aimed at children and young people.

Every year, the Danish Gambling Authority blocks websites that offer gambling products and services to Danes without a licence. The blocks are an important part of the Danish Gambling Authority’s work to protect the players and at the same time ensure a fair and legal gambling market in Denmark.

In 2024, the Danish Gambling Authority has blocked the access to a total of 162 illegal websites that offer gambling to Danes. This is the highest number of blocks in a year so far. Since 2012, a total of 438 websites have been blocked so that they cannot be accessed via a Danish telecommunications provider.

The decision to block websites is made by the courts, and the Danish Gambling Authority has been in court twice this year to have illegal gambling sites blocked. In February, 83 pages were blocked.

The Danish Gambling Authority’s option to block access to the illegal sites is done via a so-called DNS block. This means that the connection between the player and the gambling provider’s website is blocked by the player’s telecommunications provider. If the user tries to access a blocked website, they are greeted by a page stating that the site is illegal and blocked by the Danish Gambling Authority.

“We know that some players will try to bypass the DNS blocks. Therefore, it is very important to us that the information you come across is clear and makes the players aware that they are trying to access a site without a licence. These sites do not have the same level of consumer protection and it can be very risky for a player to use them,” Anders Dorph, Director of the Danish Gambling Authority, said.

Sites without a licence from the Danish Gambling Authority do not necessarily meet the same requirements as sites with a licence, and therefore players do not get the same consumer protection and security on the illegal sites.

It is, for example, impossible to play on a site with a licence if you are under 18 or if you are registered with ROFUS (Register of Voluntarily Excluded Players).

The blocked sites offer different types of gambling such as online casino, online betting and skin betting.

In the latest block, three of the 79 sites contained a new type of skin betting. Here, players can, among other things, use “Robux” as stakes as well as win Robux which is the virtual currency in the computer game Roblox.

“We pay particular attention to this new type of site. Roblox is a game that is very popular among children and young people under the age of 18. Our children should not be introduced to gambling when they play video games, so I am very pleased that we have blocked access to these sites,” said Anders Dorph.

When the Danish Gambling Authority assesses that a website offers gambling illegally without a licence, the Danish Gambling Authority asks the gambling provider to stop the illegal offering. If they do not stop the offer, the telecommunications providers are asked to block their customers’ access to the websites. If this does not happen, the Danish Gambling Authority will proceed with the case and ask the district court to order the Danish telecommunications providers to block the websites.

In the past, only telecommunications providers with membership of the Teleindustrien have been involved in the Danish Gambling Authority’s blocking processes.

In this round of blocking, however, three telecommunications providers who are not members of the Teleindustrien have also blocked access to the illegal sites.

All three telecommunications providers have blocked access to websites with illegal gambling offerings that were part of this blocking process as well as websites covered by previous rulings.

“We are very happy that three more telecommunications providers have closed access. This ensures that even more players are protected from being able to access the illegal sites,” said Anders Dorph.

Compliance Updates

Google Updates Gambling Ad Policy for Germany

Published

2 days ago

September 5, 2024

Niji Narayan

Reading Time: 3 minutes

Google has announced significant changes to its Gambling and games policy specifically for the German market. The update, set to take effect on September 25, 2024, introduces stricter requirements for gambling operators and brokers seeking to advertise on Google’s platforms in Germany. This policy revision aims to align Google’s advertising practices with German regulations and ensure compliance with local gambling laws.

According to the announcement, which came exactly one month before the implementation date, only gambling operators and brokers licensed by the Gemeinsame Glücksspielbehörde der Länder (GGL) will be eligible to apply for advertising certification for gambling products outlined in Google’s Gambling and games policy. The GGL, which translates to the Joint Gambling Authority of the German Federal States, is the central regulatory body overseeing gambling activities in Germany.

This policy update represents a significant shift in Google’s approach to gambling advertisements in the German market. Previously, a broader range of gambling-related services could potentially advertise on Google’s platforms. However, with the new policy, applications from advertisers of online gambling services who do not meet the GGL licensing criteria will no longer be accepted. This change extends to services offering gambling aggregation, such as websites that link to multiple offers from different operators on their landing pages.

The implications of this policy update are far-reaching for the online gambling industry in Germany. Existing certifications for services that do not meet the new criteria will be revoked on the policy’s effective date, September 25, 2024. This revocation will prevent these services from running gambling ads targeted at the German market through Google’s advertising platforms.

To understand the full impact of this policy change, it’s essential to delve into the technical aspects of Google’s advertising ecosystem. Google Ads, the primary platform for advertisers to reach Google’s vast user base, operates on a complex system of policies and certifications. The Gambling and games policy is a crucial component of this system, designed to ensure that gambling-related advertisements comply with local laws and regulations.

The certification process for gambling advertisers on Google involves several steps. Advertisers must first ensure they meet the eligibility requirements for their specific country or region. With the new policy update, this eligibility in Germany will be directly tied to GGL licensing. Once eligibility is confirmed, advertisers must complete an application process, which includes providing detailed information about their gambling operations and licenses.

Google’s policy update reflects the evolving regulatory landscape of online gambling in Germany. The country has implemented stricter controls on online gambling in recent years, culminating in the establishment of the GGL as a centralised regulatory authority. This move towards centralised regulation aims to create a more consistent and controlled environment for online gambling across all German states.

The policy change also highlights the challenges faced by multinational technology companies in navigating diverse regulatory environments across different countries. Google, as a global platform, must balance its business interests with compliance with local laws and regulations. This often results in country-specific policy updates, as seen in this case for Germany.

For gambling operators and advertisers, the policy update necessitates a reevaluation of their digital marketing strategies in the German market. Those without GGL licensing will need to explore alternative advertising channels or pursue licensing if they wish to continue advertising on Google’s platforms. This could potentially lead to a shift in the competitive landscape of online gambling advertising in Germany.

It’s worth noting that Google’s policy update aligns with broader trends in digital advertising regulation, particularly in sensitive sectors like gambling. Regulatory bodies and technology platforms are increasingly focused on ensuring that online advertisements for gambling services are responsible and comply with local laws.

The timing of this announcement, coming exactly 30 days before the implementation date, provides a window for affected advertisers to adjust their strategies. However, given the complexity of obtaining gambling licenses, this timeline may pose challenges for operators not already in the process of securing GGL licensing.

Google’s policy update also raises questions about the future of gambling advertising on other digital platforms. As major tech companies often follow similar regulatory trends, it’s possible that other advertising platforms may implement comparable policies in the German market or other jurisdictions with strict gambling regulations.

From a technical standpoint, the implementation of this policy will likely involve updates to Google’s ad review systems.

Compliance Updates

Swedish Regulator Gets Increased Powers for Online Gambling Intervention

Published

3 days ago

September 4, 2024

Niji Narayan

Reading Time: < 1 minute

The Swedish government has confirmed that its gambling regulator, Spelinspektionen, has been granted further control over licensees.

As a result of the intervention, the Spelinspektionen will be enabled to directly step in when it feels necessary with cases of excessive online gambling.

The government in the region said: “This decision represents a tightening of efforts against gambling problems and strengthens consumer protection.”

It enhances the control and governance of the regulator as it can now set the license holders’ action plans aimed at combating excessive gambling.

Starting from 1 October, Spelinspektionen will have the authority to modify the action plans of individual licensees to meet duty of care requirements.

The Gambling Act requires Swedish online gambling operators to have an action plan that outlines their duty of care procedures, protocols and routines.

However, Spelinspektionen informed the government that its oversight revealed significant differences in how licensees’ action plans protect customers from excessive gambling.

In response, Spelinspektionen requested the power to set specific requirements for these action plans. It emphasised that “all license holders should clearly describe in their action plans their guidelines for gambling responsibility and how these are to be implemented.”

Minister of Financial Markets Niklas Wykman, supporting the expanded powers for Spelinspektionen, added: “There must be order in the gaming market. The new requirement should lead to more detailed action plans, making it clear how gambling companies take responsibility for counteracting gambling-related risks.

“This strengthens Spelinspektionen’s ability to prevent people from being affected by the negative aspects of gambling.”