Curaçao Finance Minister Emphasizes Benefits of New Gambling Legislation

Silvania discussed the National Ordinance for Games of Chance (LOK) which is set to usher in significant changes in Curaçao’s gambling landscape. 

Finance Minister Silvania Highlights LOK as Curaçao’s Shield Against Grey-Listing Threat

Minister of Finance Javier Silvania stressed the importance of the LOK, highlighting its role as a “safety net” to protect Curaçao from the threat of grey-listing. Silvania’s concern stems from the vulnerability Curaçao faces in terms of anti-money laundering (AML) systems.

The case of Gibraltar serves as a stark reminder of the consequences of inadequate AML measures within a gambling hub. Gibraltar’s recent placement on the Financial Action Task Force’s (FATF) grey list, partly due to insufficient fines for AML failings, has raised concerns among Curaçaoan authorities.

The risk of grey-listing looms large for Curaçao, as it faces a financial evaluation by FATF next year. At the event organized in collaboration with SiGMA, Minister Silvania highlighted the real and worrying possibility of being placed on the grey list, which could result in restricted or prohibited trade with certain governments and negatively impact local companies’ revenues.

Silvania’s emphasis on the LOK as a safeguard against grey-listing is grounded in the potential far-reaching consequences for Curaçao’s economy. A grey-listed status could lead to negative perceptions about the island’s compliance with international standards and may prompt governments to restrict trade with Curaçao.

LOK Legislation Aims to Transform Curaçao into a Thriving Gambling Hub

One of the key motivations behind the LOK is to enhance the economic prospects of Curaçao. The current disparity between Curaçao’s licensing revenues and those of other jurisdictions, such as Malta, is striking. In 2022, Malta reported licensing revenues of €82 million, while Curaçao’s earnings were approximately €250,000 during the same period.

This substantial contrast underscores the need for Curaçao to rethink its approach. Minister Silvania has encouraged a shift from being a destination for affordable and straightforward licenses to becoming a jurisdiction that not only generates higher revenue but also provides better protection and benefits for operators and its citizens.

Minister Silvania also highlighted that the economic impact of well-managed gambling jurisdictions extends beyond licensing fees. It includes a ripple effect that affects various sectors of the economy, from corporate and banking services to property leasing and software development, along with job creation and local economic growth.

Curaçao’s move towards a more robust gambling framework is expected to open up employment opportunities, improve education through industry-specific training, rejuvenate business districts, and enable the broader population to acquire valuable skills.

Curaçao recently extended master licenses for a year ahead of the regulatory changes as part of its LOK plan, aiming to simplify the licensing process and enhance compliance with AML rules and responsible gambling standards.