Curaçao Gaming Regulator Responds to Corruption Allegations Amid Reforms

The Curaçao Gaming Control Board (GCB) has issued a statement addressing allegations of corruption in its licensing process. These accusations were brought by Luigi Faneyte, an opposition politician from the Real Alternative Party. Faneyte recently filed a report with the attorney general’s office, claiming that some gambling licenses were issued without proper legal authorization, leading to financial losses.

Allegations and Response

Faneyte’s allegations also implicated Curaçao’s finance minister, Javier Silvania, in corrupt practices. In response, the GCB clarified that it has exclusive authority over all aspects of licensing, a responsibility it has held since December 2019 under a mandate from the Ministry of Finance. The board emphasized that licensing decisions are made independently by its team, with extensive checks to ensure compliance.

The GCB highlighted the rigorous due diligence process required for license applicants, which includes:

• Thorough reviews of business plans

• Sanction screenings

• Initial evaluations of applicants’ websites

All licensing fees are paid directly into a government-controlled bank account, eliminating the possibility of mismanagement or embezzlement. The GCB firmly denied claims that money laundering or other financial irregularities occur within its processes.

Regulatory Reforms

The controversy comes amid ongoing reforms to Curaçao’s gaming regulations. A new framework, the National Ordinance for Games of Chance (LOK), was introduced in July 2022 to modernize the licensing system. Although initially set for completion by the end of 2023, delays arose due to a surge in licensing applications.

Under the new system, all operators licensed before September 2023 must reapply to ensure compliance with updated standards. Key elements of the reform include:

• Mandatory reapplication of existing operators

• Stronger compliance requirements

• Modernized oversight processes

Oversight Challenges

The GCB also addressed concerns stemming from the recent bankruptcy of BC Game, a Curaçao-licensed operator. The company failed to resolve numerous player complaints, prompting criticism of the regulator’s oversight. The GCB clarified that handling player grievances falls under the responsibility of individual operators.

However, the new LOK framework will make Alternative Dispute Resolution (ADR) mandatory. This will provide independent evaluations of disputes, with outcomes feeding into the GCB’s supervision strategy.

The GCB further acknowledged issues tied to Curaçao-licensed operators abroad, such as:

• BG Game fined €840,000 (US$883,000) by Dutch authorities

• Reports of unauthorized gambling activity in European markets

• Cases where foreign penalties were imposed despite Curaçao’s lack of enforcement powers

Conclusion

The GCB reiterated its commitment to transparency, international cooperation, and regulatory improvements. Despite ongoing allegations, the board remains focused on finalizing the LOK reforms, strengthening oversight, and building a modernized licensing environment to protect both operators and players.