Compliance Updates
Brace Yourselves: Curacao’s New Gambling Law Is at the Door
Curacao is approaching the finishing line of its online gambling reform with the new law being sent to the parliament earlier this week. Markus Bjork at Slotsoo has been in touch with both the Ministry of Finance and several Curacao operators to find out how they feel about this big change. Do European license providers have a reason to feel threatened by Curacao casinos 2.0?
LOK Now Just Waiting for Parliament Approval
On December 19, Curacao’s Ministry of Finance informed that the new law has been officially submitted to the parliament. The National Ordinance for Games of Chance, commonly referred to as LOK (Landsverordening op de kansspelen), is expected to come into effect in the first half of 2024.
Finance Minister Javier Silvania, the front figure of the reform, shares his excitement about this historical moment: “We are very happy to reach this final stage. The submission of the LOK to Parliament is not just a procedural step but a leap towards transformative progress.”
No More Master Licenses or Middle Men
The current setup of the Curacao casino licenses is very unique, with four master license holders being in charge of giving licenses to individual casino operators and ensuring their compliance to the regulations.
This has resulted in big quality differences and if you were to ask ten European Union players how they feel about Curacao casinos you would get very varied replies. Another critique with the current system is that most of the financial gain goes to the four master license holders while the island of Curacao is left with light pockets.
LOK will put an end to master licenses and middle men and require all licenses to be applied directly from Curacao’s Gaming Control Board. This means more uniformed quality and better control. The new law will also require gambling companies to have physical presence on the island, creating new job opportunities for the locals.
The Curaçao casinos we interviewed all welcome the new setup. Spinwise (Tsars Casino) sees some hurdles but says it will be worth it in the long run: “The prohibition of sub-licensing by master licensees introduces a new financial dynamic for individual companies, albeit with associated fees. While adaptation to the new framework may pose short-term challenges, the long-term benefits are expected to outweigh these initial obstacles.”
The Curacao License Will Remain Tax Free
Curacao has been a popular license choice for casino entrepreneurs ever since its conception. Alpha Affiliates’ Chief Legal Officer Alexandra Shepelevich lists the three main benefits of the Curacao license as:
- No tax on winnings
- No restrictions on player nationality
- Strong regulatory framework
Curacao will not try to change this recipe with the new law. The gross profit tax will stay at 0% for all license holders no matter how big or small the revenue is. This is a stark contrast to most licenses in Europe.
A common concern among Curacao operators is that the new system will cause a high barrier for entry, which some see as a positive thing. The new fees for a Curacao casino will be approximately €50,000 a year (annual license fee of €24,600 plus twelve monthly fees of €2,050 and yearly domain fees of €250 each with these numbers based on current ANG/EUR exchange rates).
Another strategy to keep unserious casinos away is the introduction of a digital seal, which will be made available on January 1, 2024. The digital seal is issued by Curacao’s Gaming Control Board and will help players confirm that the website has an active license.
Keeping the Balance Is Crucial for Success
Finance Minister Javier Silvania shares that they had a very inclusive approach when drafting the new law. They consulted all the stakeholders to make sure LOK will consider different perspectives and not just serve one group. The country of Curacao, its citizens, the gambling industry and the players should all benefit from the reform.
Many license jurisdictions that go through a re-regulation fall into the trap of legislating too much, without the government listening to the industry or the players enough. This leads to fewer license holders and lower channelization rates as both the operators and the players search for more attractive solutions from other countries.
All the casinos that we spoke to agree that a good balance between regulations and operational freedom needs to remain. Mark Wellington, Rollino Casino’s Chief Compliance Officer, elaborates this point in his interview with Slotsoo: “One current challenge is maintaining a balance between fostering innovation and ensuring strict compliance with regulatory standards. Striking this balance is crucial to support a dynamic and competitive industry while safeguarding player interests.”
We wish Curacao good luck with its new start in 2024.
Playson, the fast-growing digital entertainment supplier, has been granted an ISO/IEC 27001:2022 certificate, reinforcing its commitment to implementing robust compliance measures.
Having previously gained an ISO 27001:2013 certificate three years ago, this updated version is key in safeguarding sensitive information and required for Playson to hold its existing licences in valuable regulated markets.
This latest development coincides with Playson’s plans to further extend its outreach across a number of regions over the next 12 months, paving the way for the supplier to enter new jurisdictions in a more streamlined way.
The accreditation was awarded by Quinel and recognises the provider’s adherence in aligning with the standards that the International Organisation for Standardisation sets, demonstrating its ability to mitigate any information security risks whilst meeting all necessary legal and regulatory requirements.
The 2022 version includes updates and revisions to better address contemporary information security risks and challenges, such as those related to cloud computing, remote working, and emerging technologies. It provides organisations with a framework for implementing and managing an effective information security management system (ISMS) to protect their sensitive information assets.
Vsevolod Lapin, Deputy CEO at Playson, said: “The transition to ISO 2022 is welcome news for the business, and shows our continued dedication to compliance and regulation. Partners can rest assured of Playson’s heightened security measures and adherence to international standards with us acquiring this certificate.
“Greece, Ontario and Sweden are vital territories for Playson, with this certification also necessary for the Swiss market, and I expect the ISO 2022 to be required for more jurisdictions in the future, so this recognition has been received at a good time as we look to strengthen our global standing.”
The post Playson awarded ISO/IEC 27001:2022 certification appeared first on European Gaming Industry News.
The Thai government is exploring the possibility of restricting gambling areas within entertainment complexes to no more than 5% of the total project space. This proposal was revealed by Deputy Finance Minister Julapun Amornvivat, who also chairs the House committee responsible for evaluating the potential establishment of casino resorts in the country.
Amornvivat noted that the allocation of space for gaming activities within these entertainment complexes would be determined based on input from various governmental entities involved in a project.
Last month, Thailand’s cabinet approved a report from the National Assembly committee that examined the feasibility of introducing casino resorts in the country. The Ministry of Finance was tasked with conducting a 30-day study to assess the viability of implementing such a policy.
Each proposed venue would require a minimum investment of THB100 billion ($2.75 billion), according to the committee report. Amornvivat recently requested a two-week extension for the study period to further evaluate the matter in collaboration with 16 other government agencies.
The special House committee’s study focused on three main areas. First, it examined the potential impacts of introducing entertainment complexes with casinos on various aspects of Thai society, including economics, politics, social dynamics and the environment.
Second, the committee analysed the business framework of integrated entertainment venues, exploring revenue generation mechanisms such as taxes, fees and licensing structures. It recommended the implementation of specific casino taxes and the establishment of a fund aimed at addressing the negative effects of gambling activities.
Last, the report highlighted the importance of conducting a comprehensive review of the legal framework governing entertainment venues and gambling laws in Thailand. This effort aims to update existing legislation or develop new laws that align with the evolving societal landscape.
The post Thailand Considers Limiting Gambling Areas to 5% of Total Project Space appeared first on European Gaming Industry News.
iGaming Ontario has welcomed the decision of the Ontario Superior Court, which found that iGaming Ontario’s model is consistent with the Criminal Code and that iGaming Ontario is conducting and managing igaming in the province.
“We have always been confident in our model and are pleased that the court has ruled in our favour, and that Ontarians can continue to play with confidence in our regulated igaming market,” said Martha Otton, Executive Director of iGaming Ontario.
“Ontario’s model meets the requirements and contributes to the public good by protecting players, their data and their funds, while helping to fund priority public services in Ontario, and bringing well-paid, high-tech jobs and economic development to Ontario,” Otton added.
In dismissing the application brought forward by the Mohawk Council of Kahnawà:ke (MCK), the Superior Court found that iGaming Ontario is the “operating mind” behind Ontario’s competitive igaming market in accordance with the conduct and manage requirements of the Criminal Code.
iGaming Ontario will continue to conduct and manage igaming as it has since the launch of the regulated market on April 4, 2022.
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