Curaçao Online Gaming License: A Comprehensive Guide

Introduction

Curaçao has long been recognized as one of the most favorable jurisdictions for online gaming operations. Its stable political and economic environment, coupled with an efficient regulatory framework, provides an attractive foundation for companies looking to enter the global online gaming market. This guide offers a detailed overview of Curaçao’s online gaming licensing structure, including key requirements, processes, and associated fees. It is intended to help independent professional service firms in Cyprus understand the offering and guide their clients effectively.

1. Curaçao as a Strategic Online Gaming Hub

Stable Political and Economic Environment:

Curaçao has established itself as a leading jurisdiction for online gaming businesses due to its political stability and robust economy. The government actively supports the development of the online gaming sector, providing a secure and predictable environment for operators.

Favorable Tax Regime:

Curaçao offers a highly competitive tax regime, with corporate income tax set at a low rate of 2% for online gaming operators. There is also no VAT, capital gains tax, or withholding tax on dividends, making it a cost-effective jurisdiction for establishing an online gaming business.

Global Market Access:

Curaçao’s geographic location and its internationally respected regulatory structure make it an ideal gateway for online gaming companies seeking to access a broad global market, including Europe, Asia, and Latin America.

2. Curaçao Online Gaming License Types

As of recent regulatory reforms, Curaçao has shifted from the former master and sub-license system to a new license structure comprising two primary license types:

B2C (Business-to-Consumer) License:

This license is for operators offering gaming services directly to consumers, such as online casinos and sports betting platforms. A B2C license covers the entire suite of gaming services, including slots, live casino games, poker, and sports betting.

B2B (Business-to-Business) License:

The B2B license is for companies that provide services to other gaming operators. This includes software providers, platform developers, and payment service providers. Holding a B2B license allows firms to offer their products and services to licensed B2C operators in multiple jurisdictions.

Key License Requirements:

Corporate and Substance Requirements:

The license holder must be a Curaçao-incorporated company. The company can either be managed by a local, resident Managing Director or a foreign, non-resident Managing Director; however, in the case of a non-resident Managing Director, the company must retain a Local Representative.

Three Key Differences between Managing Director & Local Representative in Curaçao:

1. Decision-Making Authority: The Managing Director has decision-making power; the Local Representative/Attorney-in-Fact typically does not.
2. Legal Accountability: The Managing Director bears more responsibility and liability, whereas the Local Representative’s role is more administrative.
3. Operational Role: The Managing Director manages the company’s operations, while the Local Representative primarily fulfills local presence and compliance needs.

No matter the client’s strategic preference, we can assist in fulfilling the above options for the Curaçao license holder, including establishing a company and registering it with the Curaçao Chamber of Commerce. Fees for corporate services available upon request.

Financial Requirements:

For both B2C and B2B licenses, there are financial criteria to be met, including proof of sufficient capital to operate. This ensures the license holder can cover operational costs and ensure player payouts. While the minimum capital required may vary depending on the scope of the operation, most operators need to demonstrate that they have solid financial backing.

Technical Requirements:

License holders must have a fully operational online gaming platform, including a website with the necessary security measures, such as encryption and secure payment gateways. They must also demonstrate their ability to maintain servers and technical infrastructure.

Compliance and Regulatory Requirements:

Curaçao places a strong emphasis on responsible gaming practices, anti-money laundering (AML) measures, and player protection protocols. Licensed operators are required to comply with local and international regulations on player identity verification (KYC) and reporting suspicious transactions.

3. Application Process and Timeline

The application process for a Curaçao online gaming license involves the following key steps:

Application Submission:

All required documentation, including business plans, financial statements, and technical specifications, must be submitted to the Curaçao Gaming Control Board. The process is designed to ensure transparency and thorough review.

Review and Due Diligence:

The GCB will conduct a detailed review of the submitted materials. This includes a background check on the applicants, verification of financial and technical capabilities, and ensuring compliance with the required standards.

Issuance of License:

Once the application is approved, the license is issued. The timeframe for approval varies, but it generally takes between 6 to 8 weeks, depending on the complexity of the application.

4. Fees and Associated Costs

The fees for obtaining and maintaining a Curaçao online gaming license are structured as follows:

License Fee:

The annual license fee is ANG 120,000 (approximately USD 66,850) for licenses covering up to 40 registered domain names. This fee is subject to future adjustments, which may include additional charges for approval of changes, such as adding domains or updating Ultimate Beneficial Owners (UBOs).

Payment Schedule:

The payment of the license fee is structured as follows:

• ANG 36,000 (approximately USD 20,055) is payable upon the granting of the license, as stipulated by the Gaming Control Board (GCB).
• ANG 7,000 (approximately USD 3,900) is payable monthly, starting from the first month after the license is granted.

Additional Domain Fees:

For each additional domain name added to the license, an annual licensing fee of ANG 500 (approximately USD 280) per domain name will apply.

This fee structure ensures flexibility for operators looking to scale their operations, with a clear framework for both the initial and ongoing costs associated with holding a Curaçao online gaming license.

Conclusion

Curaçao’s online gaming license provides an excellent opportunity for operators to enter the global online gaming market. Its favorable tax regime, stable regulatory environment, and affordable licensing costs make it a preferred choice for many businesses. By securing a Curaçao online gaming license, operators can position themselves for growth in a rapidly expanding industry. We are here to assist you with navigating the licensing process, and ensuring compliance with all necessary requirements.