Announcement from the Curacao Gaming Control Board (GCB)

What is it about:

The announcement outlines the procedures for obtaining online gaming licenses from the GCB under the current regulatory framework known as the National Ordinance on Offshore Games of Hazard (NOOGH). The authority of the GCB stems from the NOOGH, which delegates the responsibility of issuing licenses. The purpose of these guidelines is to assist applicants in completing their applications thoroughly and to understand the expectations set forth by the GCB. It is crucial for applicants to carefully review these guidelines.

Since November 2023, the GCB has been accepting and processing online gaming license applications from operators who seek to obtain a license directly from the GCB through a new application process. All applicants must be entities incorporated in Curacao, and individuals (or natural persons) are not eligible to apply through alternative legal structures.

This process will eventually be integrated into a new gambling ordinance (LOK) under the Curacao Gaming Authority (CGA), the successor of the GCB. According to the current draft of the LOK, licenses granted directly by the GCB under the new application process will automatically transition to the new LOK licensing regime, and the license will be considered as granted by the CGA.

The number of licenses will not be limited but will be determined by the suitability of the applicants. Currently, the GCB is only mandated to grant B2C licenses, meaning licenses for applicants who directly provide remote gaming services to end-user customers. B2B2C service providers, entities that are involved in critical player account and funds management, are also considered a form of B2C and are eligible to apply for a license with the GCB.

Pure B2B entities, which solely provide technology-based services, may be considered for a license before the enactment of the LOK, but the GCB will announce further details regarding this option later in the year.

License Categorization and Application Flexibility:

Under the current NOOGH legislation, all licenses issued by the GCB are categorized in the same manner. However, the GCB must be informed of any material changes to a licensee’s operational model. This includes:

  • Companies which are directly interacting with players, controlling player funds and/or player data management (B2C).
  • Companies, such as platforms, that significantly facilitate B2C operations concerning player funds and player data (B2B2C). B2B2C licenses are issued to entities genuinely involved in these operations. It’s important to note that this license type is not a replacement for the Master License/Sublicensee business model, and sublicensing will be prohibited under these licenses, as well as under the LOK licenses in the future. Additionally, these licenses are intended to be issued only to entities supplying B2C license holders.

After the enactment of the LOK:

It is anticipated that B2B licenses will be mandatory only for B2B entities established in Curacao, while they will be optional for other relevant international entities.

Key Points:

i. A License Account is established by the Curacao-registered entity operating the business intended to receive a successful license(s) grant. Corporations are not limited to making one application; they can apply multiple times under a single License Account.

ii. Any license can have unlimited domains, but each domain is exclusively allocated to a single license.

iii. No Sublicenses will be permitted.

 

Census and Account Application Deadline: March 31, 2024

Registration of Sublicenses on the GCB portal and any application for direct licenses of those Sublicensee operators (including Master Licensors wishing to operate a B2C or B2B2C business) will cease after midnight on March 31, 2024 (Curacao time).

Regarding the Census:

The Master Licensor is responsible for ensuring that all its Sublicenses and related domains are registered. This can be done via a Census Account, unless the Sublicensee registers some or all of their domains through a License Application. In the latter situation, the applicant must grant Census Account rights to the Master Licensor (via the GCB portal) if requested, to ensure compliance with all information being complete and accurate.Only registered domains will be recognized by the GCB under the terms of the Master License. Any unregistered domain can no longer be sheltered under any Master License.

License Application Submission and Consequences of Non-Submission:

An application will be deemed submitted by midnight on March 31, 2024 (Curacao time) if all three forms are fully complete and uploaded, along with their associated enclosures, and the “Submit” button has been pressed.

An applicant with a properly submitted application may continue its business operations uninterrupted per the terms of the Sublicensee agreement until a direct license is issued.

Placeholder or blank documents are not permitted, and any such documents uploaded to hit the “Submit” button will result in the application not being deemed submitted by March 31, 2024. Operations under this application will have to cease unless included on the Census and their Sublicensee contractual arrangements are still valid.

If the application is not submitted by midnight on March 31, 2024, existing Sublicensees risk losing their opportunity to apply directly to the GCB, which may lead to termination of their right to operate.

License Issuance Pre or Post March 31, 2024, and Resultant Consequences and Obligations:

Operators must comply with general and specific conditions, policies, and regulations set by the GCB.

Operators must ensure they only use the domains referenced in their license application or those domains that are proxies or derivatives of those listed in the license application.

Operators must ensure that every active domain correctly displays the Dynamic Seal using the unique token issued for that domain on the portal. New domains may be added subject to an administrative fee.

Policies and procedures referenced in the application must be submitted in full no later than six months after license issuance or earlier at the request of the GCB.

Operators choosing to run their direct license from the GCB in parallel with existing Sublicenses within the same legal entity must disclose details of the business under the Master License and outline the rationale for the separation of business activities. The GCB may impose further license conditions at its discretion to address any legitimate concerns.

The GCB will issue regulations regarding minimum KYC requirements for its license holders to apply to their customers, expected in April 2024.

Post March 31, 2024: Portal Restrictions

Applications from all license holders made after midnight on March 31, 2024 (Curacao time) will not be considered.

Applications from new entities (not existing Sublicenses or Master Licensors) can be submitted any time before the enactment of the LOK, including after March 31, 2024.

All applications submitted before March 31, 2024, are more likely to be considered first, given the high existing volumes.

Any applications submitted after this date risk losing the “grandfathering” rights afforded to applications submitted before March 31, 2024.

Any license issued before midnight on March 31, 2024 (Curacao time) or to an application in progress by that date will automatically be grandfathered into the new framework via a provisional license at the changeover from the NOOGH to the LOK, subject to the conditions of the LOK.

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