WILLEMSTAD – Despite the passing of the new Gambling Law (LOK) by parliament this week, oversight of Curaçao’s gambling sector remains unresolved. According to the Implementation Report for Curaçao’s National Package, covering the period from September 1, 2024, to March 31, 2025, the establishment of the new regulatory body responsible for enforcing the law has been delayed. The creation of this oversight agency is now expected to occur in the first quarter of 2025.
The delay in the development of the agency’s operational framework means that the necessary structure and processes for effective regulation are not yet in place. As a result, although the LOK is ready for publication and only awaits the signature of the governor, oversight and enforcement of the new regulations cannot begin.
The new regulatory body is meant to address the lack of transparency and control in the gambling sector. It will be responsible for ensuring compliance with the law, issuing licenses, and collecting licensing fees and taxes. Without this oversight body in place, the risk remains that the gambling industry will remain insufficiently regulated, leading to lost government revenue.
While the gambling industry plays a significant economic role in Curaçao, it has been under pressure for years due to weak oversight and a lack of control mechanisms. Despite the new law being passed, effective regulation is still postponed, delaying the reform of the gambling sector in practice.
Legal Complications and Allegations
The gambling policy in Curaçao is further complicated by legal issues and allegations of irregularities. According to reports from Luigi Faneyte, former head of the Treasury, accusations have been made against the minister for alleged misconduct and conflicts of interest within the gambling sector.
Faneyte’s reports highlight the use of opaque structures through Malta, which allow operators to evade taxes and oversight. These structures enable gambling companies to operate under a Curaçao license while actually conducting business from Malta or other jurisdictions. This not only leads to a loss of tax revenue for Curaçao but also undermines control and transparency in the sector.
The delay in setting up the new regulatory body exacerbates this issue. Without a functional oversight agency, it remains difficult to address these practices and effectively regulate the gambling industry. While the LOK is seen as a crucial step toward better regulation, enforcement and monitoring of compliance with these laws remain a significant challenge for the time being.