Curaçao Gaming Authority cracks down on illegal operators

The Curaçao Gaming Authority (CGA) has reaffirmed its dedication to combating unauthorized gambling activities conducted both within the country and by entities operating from its territory. In a formal announcement, the regulator confirmed it will issue cease-and-desist orders to all Curaçao-registered entities that continue to operate under foreign licences without valid local authorization. This marks a significant step in the nation’s evolving efforts to reinforce regulatory oversight and ensure full compliance with its updated gaming laws.

Regulatory shift under LOK framework

The CGA’s renewed stance is rooted in the legislative foundation established by the National Ordinance for Games of Chance (LOK). Article 1.2(1) of the LOK explicitly prohibits individuals or entities from organizing or offering games of chance in or from Curaçao without a gaming licence granted by the CGA or without other lawful authority.

The article reads:
“Without, or contrary to, a CGA-issued gaming license, or without any other legal authority to do so, it is not allowed to organise, or provide the opportunity to play, any game of chance in or from Curaçao.”

This legal provision underscores the exclusive role of the CGA in authorizing gaming activities within the jurisdiction. While the LOK framework does accommodate legal B2B and B2C licensing structures, the CGA is now addressing concerns around Curaçao-based companies using foreign-issued licences to operate, often without transparency or proper disclosure.

Use of foreign licences by local businesses under scrutiny

The regulator’s latest statement highlights an ongoing issue: a number of businesses incorporated in Curaçao are using foreign business-to-business (B2B) gaming licences to operate, despite being subject to local regulation. According to the CGA, this practice is not only a violation of the LOK but also raises serious concerns about misleading conduct.

Operators engaged in this practice may be misrepresenting the scope or legitimacy of their operations to consumers, partners, or other regulatory bodies. This misrepresentation may create the false appearance of lawful compliance while bypassing the oversight intended by the LOK. The CGA emphasized that such actions could amount to facilitating illegal gambling, which may further implicate operators under Curaçao’s Criminal Code.

The regulator has made it clear that this practice is unsustainable under the new legal environment. To address the issue, the CGA will formally serve cease-and-desist notices to all Curaçao-registered businesses found to be operating under unauthorized foreign licences. The notices are expected to be issued in the coming days, and non-compliance may trigger further legal consequences, including criminal prosecution or regulatory sanctions.

Historical regulatory leniency gives way to reform

For many years, Curaçao was seen as having a permissive regulatory regime, especially when it came to online gambling. The island became a popular jurisdiction for gaming operators due to its relatively low licensing fees, limited enforcement, and historically broad interpretation of compliance standards.

However, this reputation has increasingly drawn international criticism, particularly from European regulators and advocacy groups concerned about money laundering, lack of consumer protection, and inadequate monitoring of licensed entities. Responding to these concerns, Curaçao’s government has sought to modernize its regulatory infrastructure through the LOK framework, which aims to align the country’s standards with international best practices.

The passage of the LOK legislation in December 2024, after two years of parliamentary debate, marked a decisive turn in policy. It replaced the legacy system of master licences and sub-licensing, which had been in place since the late 1990s, with a more centralized and transparent regulatory model. Under the new framework, all gaming operators are required to apply for licences directly from the CGA and adhere to clearly defined compliance obligations.

Licensing under the new regime

One of the first companies to receive a licence under the LOK framework was BC.Game, which was officially approved in April 2024. This licensure signaled the beginning of the CGA’s direct engagement with online gambling operators under the reformed regulatory structure.

According to the CGA, future licensing decisions will be strictly contingent upon full adherence to the provisions of the LOK. Companies that attempt to circumvent the system by relying on foreign licences while registered in Curaçao will face regulatory enforcement actions.

The new licensing regime also introduces enhanced due diligence requirements, technical standards, anti-money laundering protocols, and consumer protection mechanisms. All these measures are intended to promote transparency and integrity in the gaming sector.

International alignment and reputational recovery

Curaçao’s government has made it clear that these reforms are intended not only to protect the domestic market but also to improve the country’s international standing. For years, Curaçao has been listed in various reports as a jurisdiction with insufficient regulatory rigor in the gambling sector. Its lax approach has also raised red flags in the context of anti-money laundering (AML) and counter-terrorism financing (CFT) obligations.

In aligning its laws with global standards, the CGA aims to build stronger relationships with other regulatory bodies, particularly in Europe. The LOK framework allows for cross-border cooperation and information sharing, which could facilitate coordinated enforcement efforts and improve market surveillance.

The CGA’s move to crack down on companies abusing foreign licences within its territory is seen as a litmus test for its regulatory maturity. Should these efforts prove effective, it could signal a transformative shift in how Curaçao is perceived within the global gaming industry.

Legal implications of non-compliance

Entities found in violation of the LOK and Curaçao’s Criminal Code may be exposed to a range of legal consequences. These could include revocation of their operating licences, financial penalties, or criminal proceedings, depending on the severity and intent of the breach.

The CGA has issued a clear warning: non-compliance with local licensing requirements will not be tolerated. Businesses that continue to operate without a valid CGA licence or that seek to obfuscate their legal status by relying on foreign authorizations may find themselves subject to formal investigations or legal action.

The CGA has also encouraged operators to seek legal counsel and regulatory clarification if they are uncertain about the implications of the LOK or their current licensing status.

Impacts on the local and international industry

These enforcement actions are expected to have a substantial and immediate impact on the iGaming industry. Businesses currently operating in Curaçao under foreign licences will be forced to either transition to CGA-approved licences or cease operations altogether.

This may cause some disruption in the short term, particularly for smaller operators unaccustomed to the compliance demands of more stringent regulatory environments. However, the long-term effect could be a healthier, more transparent industry with improved accountability and consumer trust.

At the international level, the CGA’s actions may help foster greater cooperation with other gambling regulators, encouraging shared standards and mutual recognition of compliance procedures. This could ultimately lead to a more harmonized global framework for regulating online gaming.

Conclusion

The Curaçao Gaming Authority’s recent announcement marks a pivotal moment in the island’s regulatory transformation. By formally committing to enforcing the LOK framework and targeting Curaçao-registered businesses operating under unauthorized foreign licences, the CGA is sending a clear message: regulatory leniency is no longer the norm.

This shift signifies more than just a local policy update—it reflects a broader alignment with international legal and compliance standards. While the crackdown may create short-term challenges for some operators, it ultimately fosters a more credible, transparent, and accountable iGaming sector. The CGA’s actions aim to restore confidence in Curaçao’s regulatory reputation, protect consumers, and prevent the misuse of the jurisdiction by unlicensed or misrepresentative operators.

As Curaçao positions itself within the modern global gaming landscape, operators must take proactive steps to ensure full compliance with local laws. Failure to do so could result in not just business disruption, but serious legal consequences. The message from the CGA is unequivocal: the era of regulatory ambiguity is over, and the future of Curaçao’s gaming sector lies in lawful, transparent, and responsible operation.

FAQs

What is the Curaçao Gaming Authority's role?
The CGA is the primary regulatory body overseeing all gaming activities in Curaçao. It issues licences, enforces compliance, and ensures operators follow legal standards.

What does the LOK framework regulate?
The LOK governs the provision of games of chance in Curaçao. It sets out licensing rules, compliance requirements, and criminal penalties for unauthorized gaming.

Why is the use of foreign licences a problem?
Curaçao-registered companies using foreign licences bypass local regulatory oversight. This can mislead players and regulators and violate national law.

What will happen to companies using foreign licences?
The CGA plans to issue formal cease-and-desist notices. Non-compliant operators may face criminal investigation, penalties, or revocation of business rights.

Is BC.Game operating legally in Curaçao?
Yes, BC.Game received its licence through the CGA under the new LOK framework in April 2024 and is considered compliant.

When was the LOK law passed?
The LOK was passed by the Curaçao Parliament in December 2024 after two years of legislative debate and preparation.

Can operators appeal a cease-and-desist notice?
Operators may have legal avenues to contest CGA decisions, but they must demonstrate compliance with the LOK and applicable regulations.

Is the CGA aligning with European regulators?
Yes, the CGA aims to improve international cooperation and meet global standards for gaming regulation, AML, and consumer protection.

What are the penalties for non-compliance with LOK?
Penalties can include fines, licence suspension or revocation, and criminal prosecution, depending on the severity of the violation.

How does this impact international gambling companies?
Companies with operations in Curaçao must review their licensing structures. Only those licensed by the CGA can lawfully operate under Curaçao jurisdiction.