Curaçao is an island country in the southern Caribbean Sea, a part of the Dutch Caribbean region, which are also called ‘Lesser Antilles’ in the Caribbean. The island is about 444 square kilometers, situated north of the coast of Venezuela, and it is currently a constituent country within the Kingdom of Netherlands. Besides its beautiful scenery, Curaçao has one of the oldest and most politically stable providers of regulated online gaming services, offering a privileged license regime for countries all over the world.
Why have a Gambling License?
It is a fact that several online gambling services may have been operating without the attainment of a gaming license. Nevertheless, besides moral and financial reasons, there are a few factors which render a license necessary for any gambling endeavors. Firstly, online players perceive websites with a gambling license as more reliable and likely to treat them fairly; secondly, banks can offer a business bank account to companies which hold a gambling license; and lastly, operating without a gambling license is illegal in many countries, often resulting in legal action, conviction of criminal action, fines or termination of the business.
Benefits of Gaming License with Curaçao
Ever since 1996, the jurisdiction of Curaçao has been offering gambling licenses for countries all over the world, having become one of the leading and most respectful license providers. The Curaçao Gambling license is offered to entrepreneurs wishing to set up their online gaming business in a straightforward and hassle-free manner.
Michael Chambers and Co. LLC are a legal firm of Cyprus lawyers that can offer professional advice and help you with an online gaming licence in various juristictions.
The minimal market restrictions and low obstacles of entry allow the applicants the freedom to set up their gaming company fast and easy. The Curaçao regime requires one single license for any type of gambling service, whether it is a club, a sportsbook or a website. One of the most noteworthy benefits the Curaçao system offers is the low cost and tax rate. The Curaçao government charges only 2% of the tax from the profits of an online gambling business.
Types of Licenses
There are two types of gambling license under the Curaçao jurisdiction.
- First, there is the ‘master license’ which grants businesses the right to run a complete online gaming company.
- Secondly, there is the ‘sub-license’ which grants businesses the right to run a number of specific gambling services, such as online slots and scratch cards, online table games and poker rooms, live broadcast casino games and online sports betting.
Nevertheless, both types of license provide coverage for online gaming operators and offer the basic rights for an online gaming business.
Check out the article “Online gambling jurisdictions” to find out more about different online gambling juristictions.
Requirements and Procedures
The establishment of a gaming company must comply with the legal provisions of Cyprus Company Law, in addition to the Gambling laws and regulations. The Cyprus Betting Law of 2016 prescribes the establishment of a local company to qualify as an applicant for an online betting license, after which an application for the Curaçao gambling license can be made.
It is common practice for gaming entrepreneurs to apply for an Information Provider Agreement (IP Agreement) after the establishment of a company, which is also known as a sub-license from one of the existing license holders. Then, the company owner must obtain an E-Zone status and apply for the Curaçao gambling license. During this process, the applicant companies must go through “fit and proper tests”, file the respective application forms and present their online gaming platform for technical compliance checks. A licensed IP provider status is only granted when all the requirements are satisfied.
All the applicants must provide the necessary documentation:
- Proof of the ownership of a domain name
- Copies of the terms and conditions of the company which include underage gaming policy, responsible gaming policies and AML policies
- Details of the Software Agreement or the 3rd Party Certification of RNG application
- The original professional letter or reference through the accountant of lawyer
In addition, the following conditions must be complied with:
- Only authorized entities with a capital split into shares may conduct activities in an E-Zone
- The trading or services must be provided to businesses or persons located outside Curaçao
- The actions of the business in question must contribute to the financial growth of Curaçao, either by generating earnings or employment
- The financial records of the business must be drawn up in accordance with commonly allowed accounting measures and evaluated by a qualified auditor
- The transfer price rates of goods and services rendered in inter-company relations should not differ largely from generally acquired methods, like the OECD transfer pricing guidelines.
It is recommended to plan the gaming website in such a way that the monitoring agencies and the international certification system can control it, as well as to prevent and eliminate activities involving minors. For a website offering any type of gaming services to be successful, it is important to maintain a high level of attention towards the players, offer them assistance and collect claims to keep a high level of quality and usability, and also promote an attitude and actions to encourage responsible gaming.
The legalization of gambling and online game services is giving the opportunity to entrepreneurs to create their own online company. The Curaçao gambling license makes this idea come to life with ease, lots of benefits and in a reasonably short period of time, in just one month. Now is the time to stay home and build a successful online gaming business.