The Social Economic Council (SER) observes that the draft legislation of the new gambling law (LOK 2023) does not provide sufficient information on how supervision and enforcement of the online gambling sector will be carried out in practice. According to the council, it is crucial to take concrete measures to ensure compliance with the regulations and protect the integrity of the sector.
The SER advises policymakers to establish a clear and transparent enforcement framework. This includes, among other things, defining the responsibilities and powers of the regulatory authorities, specifying sanctions for violations, and establishing an effective system for reporting and handling complaints.
Additionally, the SER emphasizes the importance of collaboration between various government agencies, such as the CGA (Curaçao Gaming Authority), the Public Prosecution Service, and the Tax Authority.
Curaçao Gaming Authority
The Socio-Economic Council (SER) emphasizes the importance of effective enforcement of regulations for the online gambling industry, with specific attention to the role of the Curaçao Gaming Authority (CGA).
The CGA will be responsible for assessing license applications, certifying service providers, ensuring compliance with legislation, monitoring tax payments, and maintaining a register of gambling licenses, supplier licenses, and sanction decisions.
However, the SER expresses concerns about the institutional capacity of the future gambling authority in the short term. The implementation of the new law is expected to create a significant workload for the CGA, considering the transitional provision that requires existing businesses to apply for a license within three months of its enforcement. Therefore, the SER urges policymakers to allocate sufficient resources and personnel to enable the CGA to carry out its duties effectively.
Additionally, the SER is of the opinion that the proposed maximum number of members of the Supervisory Board (RvC) of the CGA is too limited considering the authority’s tasks and responsibilities. The SER advises expanding the number of RvC members from three to five and ensuring that the RvC members have expertise in finance, law, AMUCFT (Anti-Money Laundering, Countering the Financing of Terrorism), and responsible gaming.
Furthermore, the SER advocates for strict rules regarding potential conflicts of interest among RvC members, similar to the provisions for members of the Board of Directors (RvB). It is important to exclude individuals working in or affiliated with the gambling sector from being appointed to the RvC to prevent potential conflicts of interest.
The SER believes that the financial dependence of the CGA on the national budget undermines its independence. According to the FATF recommendations, regulators should have sufficient financial resources. The SER recommends taking measures, such as amending the Financial Management National Ordinance, to enable the CGA to generate income and be less reliant on the government.
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