Compliance Updates

Gaming Control Board (GCB) Statement on Allegations Regarding Curaçao’s Licensing Reforms

Published

2 hours ago

November 29, 2024

Reading Time: 3 minutes

The Gaming Control Board (GCB) took notice of a recent complaint made regarding the National Ordinance on Games of Chance (LOK) reform process and the integrity of Curaçao’s licensing regime and wishes to state as follows.

Authority to issue licenses

In pursuance of the National Ordinance on Hazard Games (NOOGH), the Governor is authorized to grant licenses for operating hazard games on the international market via service line providers. This authority was mandated to the Minister of Finance in December 2019, who subsequently mandated this authority to the GCB in March 2020, followed by an amendment in November of 2023. Hence, the GCB has the authority to grant, amend, suspend temporarily, revoke, or deny licenses, as well as attach terms and conditions to licenses. The allegation that the GCB lacks the legal authority to grant license is therefore incorrect.

The licenses granted on the basis of the NOOGH are not provisional licenses. Any applicant whose application is approved will be issued a license.

When the new regulatory framework (LOK) is enacted and comes into force, NOOGH license holders will automatically be granted a provisional license based on the LOK. This allows them up to one year to comply fully with all LOK requirements as a transition period.

Comprehensive Licensing Process

Under the current regime, GCB has established a multi-phase license assessment process.

License applications undergo completeness checks for the required documents, due diligence on decision-makers including sanction screening, review of the business plan and initial evaluation of the websites.

At each stage, communication with the applicant is facilitated via the GCB online portal resulting in absolute transparency, and real-time checklists are available to every single applicant.

This assessment process concludes with a report, based upon which the GCB executive team decides whether to grant or deny a license. The applicant can follow this process through the portal. The application and monitoring processes are largely manual but are supported by technology. Currently, there is little to no use of AI by the GCB, although going forward it would be remiss not to incorporate emerging technologies where it adds value. This licensing process is managed by the GCB with the support of its team of advisors.

Fee Payment

Once licenses are approved, invoices are issued by the GCB and the operators pay their fees directly into an official government bank account and not via the online gaming portal. There is no scope for mismanagement. The assertion that funds may have been embezzled is therefore not correct. Once the payment has been received the license will be granted by the GCB.

Foreign Violations

Operators are responsible for ensuring compliance with the legal requirements of all jurisdictions in which they operate. Violations are addressed by competent foreign authorities. The GCB does not have the jurisdiction to oversee or intervene in alleged breaches of foreign regulations. In this context, the GCB relies on formal decisions issued by competent foreign authorities. Enforcement actions taken by the GCB depend on factors such as the severity of the violation.

Player Complaints

Player complaints handling is the responsibility of the online operators, based on their terms and conditions, which are reviewed by the GCB. Under the LOK, Alternative Dispute Resolution (ADR) will be made mandatory to ensure more independent evaluations. Complaints received from players and future reports from ADR entities will be used as inputs in the GCB’s risk-based supervision process.

Experienced Team

In the interest of effectively implementing the new policy, the GCB collaborates with global experts, including reputable consultants with extensive experience in regulated gaming jurisdictions. All these engagements are in compliance with GCB’s internal policies.

Bankruptcy Declaration: BC.Game

Due to confidentiality obligations, the GCB will not comment on specific details of this case. The issue involves a dispute between the website (BC.Game) and certain players. Bankruptcy was declared because Small House/Blockdance failed to pay players due to the dispute, leading to the court’s declaration of bankruptcy. However, this bankruptcy is administrative (based on a civil law statute in Curacao) and is not due to insolvency. A trustee has been appointed to handle the estate and ensure payments to players. The GCB is consulting with the regulated entity involved to determine appropriate regulatory measures.

Compliance Updates

Marcus Boyle to Step Down as Chair of Gambling Commission

Published

4 hours ago

November 29, 2024

Niji Narayan

Reading Time: < 1 minute

Marcus Boyle has announced his decision to step down as Chair of the Gambling Commission, with his term set to conclude on 31 January 2025.

Over the past three years, he has led the Commission through a period of change in the industry and regulatory landscape.

During his tenure, the Commission reached several key milestones, including the awarding and launch of the fourth National Lottery licence, which has driven funds raised for good causes to exceed £50 billion. He has also overseen the ongoing implementation of the Gambling Act Review and White Paper aimed at reducing gambling harm, as well as the recruitment of a whole new Board of Commissioners.

In April 2024, the Commission published a comprehensive three-year strategy outlining planned advancements through 2027, focusing on transparency and data use. With the strategy now in motion, Marcus leaves the Commission in a strong position and with a clearly defined path forward.

The Board of Commissioners and colleagues at the Gambling Commission have expressed their gratitude for Marcus’s leadership, dedication, and contributions over the past three years, wishing him well for the future.

The Minister for Gambling, Baroness Twycross, said: “The past three years have been very significant for the Commission, as it takes forward measures set out in the Gambling Act Review and the start of the fourth National Lottery licence.

“I am grateful for Marcus’s hard work and commitment to the Gambling Commission and public service over his tenure and wish him the best for his future endeavours.”

Compliance Updates

VNLOK and NOGA Launch Reporting Centre for Illegal Online Gambling

Published

1 day ago

November 28, 2024

Niji Narayan

Reading Time: 2 minutes

The Dutch Online Gambling Association (NOGA) and the Licensed Dutch Online Gaming Providers (VNLOK) have launched the “Meld Vals Spel” (Report Cheating Hotline) to combat illegal online gambling practices.

This hotline has been set up to allow members of VNLOK and NOGA, other licensees, partner organisations and other professional stakeholders to report. At www.meldvalsspel.nl they can report unsafe practices of illegal gambling sites or apps, such as the fact that players are not protected, excessive bonuses are offered and minors are not excluded.

By collecting reports, Meld Vals Spel aims to gain a better understanding of the working methods of illegal parties. This contributes to a more effective approach to illegality and the protection of vulnerable players. The aim of Meld Vals Spel is not only to warn against the risks of playing at illegal gambling sites or apps, but also to ensure that illegal practices are dealt with severely. For example, by bringing illegal practices to the attention of the Gaming Authority (KSA), politics or social media platforms. In this way, the Reporting Point complements the efforts of the KSA.

Meld Vals Spel is an initiative of licensed providers. On www.meldvalsspel.nl, members of VNLOK and NOGA, other licensees, partner organisations and other professional stakeholders can easily report unsafe practices of illegal gambling sites or apps. A report can be a reason to conduct further investigation or to collect more signals that better visualize illegal practices. A report can also be a reason to inform the KSA.

For over three years, Dutch consumers have been able to legally participate in online gambling with providers that have been granted a license by the supervisory authority, KSA. These providers must meet strict legal requirements so that consumers can choose an attractive online gaming offer in a safe environment.

Helma Lodders, chairwoman of VNLOK and Eric Konings, acting director of NOGA: “Licensed providers of online gambling have a joint responsibility to offer players a legal, safe and responsible offer. This often goes well, but can also be improved. We work hard on this every day. At the same time, many Dutch people still come into contact with illegal gambling sites and apps. These illegal parties actively respond to the increasingly strict Dutch regulations by, for example, advertising on search terms such as ‘playing without limits’ or ‘playing without cruks’. In doing so, they specifically attract (vulnerable) players. These types of illegal practices endanger the safety of players and must be tackled firmly.”

Compliance Updates

UK Gambling Operators Face £100M Tax in Harm Reduction Push

Published

1 day ago

November 28, 2024

Niji Narayan

Reading Time: 2 minutes

Gambling operators in the UK face a tax of as much as 1.1% of profits on some types of games as the government seeks £100 million ($126 million) a year to invest in harm reduction and research.

The planned statutory levy on all licensed operators will range from 0.1% to 1.1% of the gross gambling yield, depending on the sector and nature of the gambling, according to a statement Wednesday from the UK’s Department of Culture, Media and Sport.

The UK has over the last few years introduced stricter regulation of gambling, including requiring operators to reduce the intensity of online games, carry out financial vulnerability checks of players and provide customers with better control over the types of marketing they receive. Many of the measures were announced under a Conservative government, which lost to the Labour Party in July’s General Election.

The government will review the charge within five years of its introduction, with the first formal review expected by 2030, according to the statement.

UK gambling stocks soared last month after UK Chancellor Rachel Reeves’ budget did not include much-speculated tax hikes on the sector.

The statutory levy is a separate initiative, proposed under the Conservative government in a 2023 white paper on gambling reform.

The announcement was welcomed by anti-gambling campaigner Matt Zarb-Cousin, who said that he was “really pleased” that it is being introduced. “It will totally transform the research, prevention and treatment of gambling harm,” Zarb-Cousin said.

The four biggest gambling operators – Entain Plc, Flutter Entertainment Plc, William Hill-owner Evoke Plc and Bet365 – previously pledged to pay 1% of their gross gambling yield to an industry-funded charity GambleAware in anticipation of the levy.

In the year ending in March, the charity said it received donations of £49.5 million, £46.6 million of which came from the top four operators.

“This represents a significant step towards protecting people from gambling harm. The levy is also a crucial step towards ensuring continued support through a statutory system and is something we have been calling for since 2017,” GambleAware CEO Zoë Osmond said of the plans in a statement.

The Betting and Gaming Council, which lobbies for the industry, said that it supports plans for the levy outlined in last year’s proposal.

“Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online do so safely,” Betting and Gaming Council Chief Executive Officer Grainne Hurst said in a statement.