Compliance Updates
Announcement from Curacao GCB: Guideline – Census and Application
Deadline – 31st March 2024
Contents
1. Introduction
2. License categorization under the new framework and application flexibility
3. Census and Account Application Deadline: 31st March 2024
4. When is a License Application deemed to be submitted and what are consequences of non-
submission?
5. License issued pre or post 31st March 2024 and resultant consequences and obligations.
6. Post 31st March 2024: Portal restrictions.
1. Introduction
This License Application Process document applies to online gaming licenses currently being issued by the Curaçao Gaming Control Board (“GCB”) directly to operators under the current legislation: the National Ordinance on Offshore Games of Hazard (commonly referred to as the NOOGH).
The legal authority for license issuance within Curaçao’s gambling sector originates from the NOOGH, which expressly empowers the Governor to delegate this responsibility. Such delegation was formally extended to the Minister of Finance and subsequently to the GCB, underpinning the GCB’s current operational mandate which was last updated on the 24th November 2023 and as such forms the basis for the GCB to issue online gaming operator licenses under the NOOGH.
The purpose of these guidelines is to:
1. assist applicants in making complete applications by setting out / pre-empting frequently asked questions; and
2. enabling the applicant to understand what the GCB expects of applicants and subsequent license holders.
Please ensure that you read these guidelines carefully.
For ease of reference, we will refer throughout these guidelines to online gaming licenses which will authorize by way of license the right to operate all forms of remote gambling, including sports betting.
As of November 2023, the GCB has been accepting and processing online gaming license applications from operators who wish to acquire an online gaming license directly from the GCB under a new application process. All applicants must be Curaçao incorporated entities and no individual (or natural person) may apply nor via alternative legal structures.
In making its decision whether to grant a license or refuse it, the GCB will act in accordance with Curaçao law, including the general principles of good governance.
The GCB has a discretion to grant online gaming licenses to those applicants which have satisfied the GCB that the business and individuals and entities connected to it are fit and proper based on due diligence undertaken and such businesses have the ability, finances, and technology to ensure that the remote gambling offered, complies with the high regulatory standards expected by the GCB.
The licenses will not be limited in number but only by the suitability of the applicants. The GCB currently is only mandated to grant B2C licenses – i.e., those applicants who directly supply remote gaming services to end user customers. B2B2C service providers – i.e., those entities where the company is providing critical player account and funds management – are considered as a form of B2C and can therefore apply now for a license with the GCB. (See further below).
Pure B2B entities, who only supply technology–based services, may be considered for a license pre–LOK but the GCB will make an announcement about this option later this year.
The GCB is committed to keeping the remote gaming industry free from crime and ensuring that license holders act in a fair and transparent manner and protect the vulnerable players, including minors. To that end it expects that its licensees both on application and thereafter will run their businesses, in accordance with the law, regulations and license conditions. Also, whilst the GCB will not necessarily prescribe a list of jurisdictions in relation to which licensees cannot supply services, applicants and license holders are expected to demonstrate reasonable efforts to secure compliance with law and financial sanctions guidelines in the countries where their services are accessed.
2. License categorization under the new framework and application flexibility
Licenses currently being issued by the GCB under the existing NOOGH legislation are all designated in the same way (i.e. a B2B2C model would just receive a B2C license). However the GCB would be expected to be notified of all material changes to a licensee’s operational model. A license is required by any entity as detailed in Section 4 of the Online Gaming Application Form.
- This includes:
a. Companies who interact directly with the players – controls player funds and/or player data management (B2C)
b. Companies (for example platforms) who meaningfully facilitate the B2C operations vis-a-vis player funds and player data (B2B2C). A B2B2C license will be issued to entities who are genuinely and provably involved in the operations. For clarity, this license type is NOT a replacement for the Master License / Sublicensee business model. Sublicensing will be prohibited under these licenses as well as under the LOK licenses in the future. In addition these licenses are only intended to be issued to those entities who are supplying a B2C license holders.
Post LOK-enactment, it is anticipated that (i) B2B licenses are only mandatory for B2B entities that establish themselves in Curaçao; and (ii) B2B licenses are1optional for all other relevant international entities.
- The following applies:
• A License Account is set-up by the Curaçao-registered entity that operates the business which is intended to be the recipient of a successful license(s) grant. Corporations are not limited to making one application – they can apply multiple times under a single License Account.
• Any license can have unlimited domains, but each domain is exclusively allocated to a single license.
• No Sublicenses will be permitted.
As referenced above general license conditions will apply to all. These are published on the GCB portal. In addition specific conditions may be attached to any individual licensee at the discretion of the GCB. These conditions will not be published.
3. Census and Account Application Deadline: 31st March 2024
As previously stated, registration of Sublicenses on the GCB portal and any application for direct licenses of those Sublicensee operators (including Master Licensors who wish to operate a B2C or B2B2C business in their own right) will no longer be possible after midnight of the 31st of March 2024 (Curaçao time).
- Specifically in relation to the Census:
1. The Master Licensor is responsible for ensuring that ALL its Sublicenses and ALL related domains are registered. This can be done via a Census Account unless the Sublicensee registers some or all of their domains by way of a License Application. In the latter situation the applicant must grant Census Account rights to the Master Licensor (via the GCB portal) if requested, so the Master Licensor may ensure its compliance obligations that all information is complete and accurate.
2. Only these registered domains as above will be recognized by the Gaming Control Board (GCB) as falling under the terms of the Master License. Any unregistered domain can no longer shelter under any Master License.
4. When is a License Application deemed to be submitted and what are consequences of non-submission?
- An application will be deemed by the GCB to be submitted by mid-night March 31, 2024 (Curaçao time) if the following has occurred.
a. ALL 3 forms are fully complete and uploaded. These comprise the following:
i. Online Gaming Application Form
ii. Personal History Disclosure Form
iii. Corporate and Business Information Form
b. All enclosures associated with each form have also been uploaded. Discretion will
be exercised by the GCB for certain documentation (such as police conduct
reports) which take time to receive – however the application will need to
demonstrate that reasonable steps have been taken to obtain such
documentation or propose an adequate alternative.
c. The “Submit” button has been pressed. - An applicant with an application properly submitted may continue its business operations uninterrupted per the terms of the Sublicensee agreement until a direct license is issued.
- Placeholder / blank documents are not permitted, and any such documents uploaded in order to be able to hit the “Submit” button will mean that the application will not be deemed to have been submitted by the 31st of March 2024 and the domains/operations that fall under this application will have to cease operations on that date unless they have been included on the Census and their Sublicensee contractual arrangements are still valid.
- In the event the application is not submitted by the mid-night 31st March 2024, existing Sublicensees will have lost their opportunity to apply directly to the GCB, and therefore risk that when the Master Licensor agreement expires (by (a) LOK coming into force;(b) Master Licensor /Sublicense contract coming to an end; and/or (c) Master Licensor otherwise losing its right to sublicense which in all cases mean its right to operate will terminate.
5. License issued pre or post 31st March 2024 and resultant consequences and obligations.
- Operators must comply with general and specific conditions and policies and regulationsby the GCB.
- Operators must ensure it only uses the domains referenced in its license application and/or those domains that are proxies or derivatives of those listed in the license application.
- Operators must ensure that every active domain correctly displays the Dynamic Seal using the unique token issued for that domain on the portal. New domains may be added subject to an administrative fee.
- Policies and procedures referenced in the application must be submitted in full no later than 6 months of license issuance or earlier at the request of the GCB.
- Operators who choose to have their direct license from the GCB running in parallel with existing Sublicense within the same legal entity will be expected to: (i) Disclose to the GCB details of the business running under the Master License; and (ii)) Outline the rationale of the separation of business activities. In this situation, the GCB may, at its discretion, impose further license conditions to address any legitimate concerns.
- The GCB will issue regulations in connection with minimum KYC requirements required of its license holders to apply to the latter’s customers. The GCB expects to issue these regulations as of April 2024. These regulations are based on current Curaçao laws relating to AML/CTF under NOIS and NORUT (The National Ordinance on Identification when Rendering Services and the National Ordinance of the Reporting of Unusual Transactions).
6. Post 31st March 2024: Portal restrictions.
- As stressed above, and previously, the application deadline for a Sublicense holder, or a Master Licensor who wishes to become an operator in their own right is the 31st of March 2024 by midnight (Curaçao time).
- Applications from all the above license holders made after the 31st March 2024 midnight (Curaçao time) will not be considered.
- Applications from new entities (not existing Sublicenses or Master Licensors) can be submitted any time before LOK is enacted, so also after March 31st 2024.
- All applications submitted prior to the 31st March 2024 date are more likely to be considered first, given the high existing volumes.
- All applications after this date even those under 3 above run the risk if delayed that the licensing application cannot be deemed submitted prior to LOK enactment (losing the “grandfathering” rights afforded to applications submitted prior to 31st March 2024).
- Any license issued before the 31st March 2024 mid-night (Curaçao time) or to an application that is in progress by that date (or those under 3 above) will automatically be grandfathered into the new framework (via a provisional license) at the changeover from the NOOGH to the LOK, subject to the conditions of the LOK, whenever that may be.
Compliance Updates
Department of Trust set to meet challenges of new affordability checks
Department of Trust (dotrust.co.uk), the award-winning provider of financial risk assessments for safer gambling is poised to meet the challenges of the newly announced regulations on frictionless financial checks by the UK Gambling Commission and Betting and Gaming Council.
Under the new rules published by the Gambling Commission, operators have until August 30th to implement frictionless checks on all customers making £500 net deposits in any rolling 30-day period. These frictionless checks form part of a new regime designed to protect players at risk of financial harm and replace the current ad hoc approach to affordability checks.
Department of Trust also welcomes the interim voluntary code published today by the Betting and Gaming Council (BGC), the standards body representing over 90% of UK-regulated market operators. This code focuses on how responsible operators should support customers spending above the lower threshold set out by the Gambling Commission.
The supplier’s DoTrust Complete solution offers an integrated suite of frictionless and enhanced financial risk checks with a high level of automation capability -the only such tool built solely for safer gambling – and is perfectly positioned to help businesses navigate the newly regulated waters.
Charles Cohen, CEO of Department of Trust, said: “These important announcements flag the end of gambling’s ‘sus law’ where players faced seemingly arbitrary requests for personal information, operators were placed under a significant burden, and no one won
“We now know that in 120 days, every operator will need to perform frictionless checks on all players with net deposits in a 30-day rolling period of £500. A few months later this will fall to a much lower level.
“If operators want to protect their business, keep their customers and reduce costs, smart automation is the only answer.
“Department of Trust has spent over two years building the leading plug-and-play solution specifically for the gambling industry. Complete already automates over 90% of the processes required in both the new LCCP and BGC code. Now we know what the requirement will be, we are today committing to the goal of 100%. We want every operator and player to have instant assessments and sensible decisions cost-effectively. No one needs to lose sleep over this.”.
Asia
Uzbekistan Legalises Online Betting and Lotteries
President of Uzbekistan Shavkat Mirziyoyev has signed a decree on April 19 titled “On Measures to Improve the Regulation of the Organization and Conduct of Lotteries and Risk-Based Games in the Republic of Uzbekistan”. The document abolishes the ban starting from January 1, 2025, and introduces a legal framework for the organisation of risk-based games online and betting activities.
The issue of legalising betting activities has been a long-standing topic in Uzbekistan. In December 2019, the president signed a decree to legalise bookmakers, but this decision was revised in April 2022. In April 2023, the head of state instructed the development of a regulatory framework for betting activities.
The National Agency for Advanced Projects (NAAP), the authorised state body for regulating and licensing activities in this sector, provided insights on the necessity of introducing state regulation in the gambling sector in Uzbekistan. The agency emphasised the need to prevent illegal gambling businesses, protect players’ rights and generate additional income for the state budget.
The president’s decree aims to introduce advanced foreign experience and modern technologies in regulating the organisation of risk-based games and lotteries to increase investment attractiveness, tourist potential and attract additional funds to the country.
The measures outlined in the decree include the creation of legal foundations for the legalisation of activities related to risk-based games online, betting activities, and lotteries, implementation of mechanisms to protect citizens’ rights and interests, prevention of gambling addiction and the generation of additional state budget revenue.
Starting from January 1, 2025, a taxation system will be introduced for license holders, where organisers of online games, betting activities and lotteries will pay a turnover tax. This system aims to prevent the concealment of taxable revenue and is expected to generate additional tax revenues for the state budget.
Overall, the implementation of the decree is intended to establish a reliable foundation for the legal regulation of activities related to organising risk-based games online, betting activities and lotteries in Uzbekistan, protect citizens’ interests, combat gambling addiction and provide additional sources of income for the state budget.
Compliance Updates
IAGR & IMGL Open Ticket Sales for 2024 Conference in Rome
The International Association of Gaming Regulators (IAGR) has opened registrations for its annual conference, taking place in Rome, Italy, from October 21 to 24.
With the theme Navigating the Future of Gaming Regulation in a Transforming World, this year’s event is a partnership with the International Masters of Gaming Law (IMGL).
“IAGR and IMGL’s Rome conference is a four-day event that brings together regulators, industry thought leaders and experts to share ideas and shape the future of gaming regulation across the world,” the President for the IAGR, Ben Haden, said.
The conference follows last year’s event in Gaborone, Botswana, which brought together the largest number of attendees in IAGR’s history.
“This year, participants can look forward to diving into themes that are at the forefront of the gaming regulation landscape including advancements in technology, the evolving regulatory challenges and strategies for future-proofing the global gaming industry,” Haden said. “In an era where technology is rewriting the rules of our industry, the question isn’t whether to adapt, but how swiftly we can. IAGR 2024 is about coming together as a global community to not only keep pace with change but to drive it.”
Confirmed speakers will be announced from May.
Conference highlights:
- Expert-led sessions and panel discussions on the latest in gaming regulation
- Joint conference sessions and events with IMGL, providing further networking and knowledge-sharing opportunities
- Networking events set in the heart of Rome including an opening reception and gala dinner featuring the International Regulatory Awards ceremony
Early-bird pricing is available until July 31 with super-early bird prices available until May 31. Head to the IAGR website for more details and ticket sales.
-
Compliance Updates6 days ago
Department of Trust set to meet challenges of new affordability checks
-
Latest News6 days ago
PRAGMATIC PLAY HITS THE SWEET SPOT WITH FRUITY TREATS
-
Latest News6 days ago
SIS and Premier Greyhound Racing reveal improved greyhound race time schedule
-
Industry News5 days ago
Meridian Donate: Revolutionizing CSR in the Betting and Gaming Industry
-
Industry News5 days ago
Genome and Chilli Partners join forces to revolutionize iGaming affiliate payouts
-
Industry News5 days ago
Games Global Announces Launch of IPO
-
Asia6 days ago
Esports media platform TalkEsport raises $1 million in pre-series A funding round
-
Industry News6 days ago
Explore the future of gaming at ICE Barcelona: 20 – 22 January 2025