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The GCB faces allegations of funds mismanagement regarding license portals
On the 25th of November, the Real Alternative Party, backed by Luigi Faneyte, submitted a 400-page report to the country’s Attorney General’s Office where it accused the Curacao regulator, ex-MGA chief Mario Galea, and the current finance minister Javier Silvania of several criminal allegations relating to the new gambling system that was supposed to go live by the end of 2024.
The Curaçao Gaming Control Board has responded, categorically denying the allegations and asserting that the new system, named the National Ordinance for Games of Chance (LOK), is designed to enhance regulatory oversight and promote transparent gaming practices.
The Board released its statement on the 29th of November 2024 and touched on issues regarding its ability to issue our licenses and the plans for the coming future.
The GCB’s Legal Right to Issue Out Licenses
One of the highlights of Faneyete’s report was the assertion that the GCB lacked the authority to issue licenses under the National Ordinance on Hazard Games (NOOGH). In response, the Board clarified that it operates under the mandate established by a 2020 ruling from Kenneth Gijsbertha, who was the finance minister at the time. The mandate was later amended in 2023, and even then, the GCB added that their licenses are not provisional but full and subjected to stringent regulations.
With the introduction of the National Ordinance for Games of Chance (LOK), the license status would change to provisional, and operators would have only a year to comply with the new requirements. There are also talks of a new multi-phase licensing process, which will see the board evaluate business plans, review operator websites, verify documents, and conduct due diligence.
Responding to Criminal Allegations
Another major claim from Faneyete in his report was that the GCB was laundering money through its licensing process. He mentioned that “All in all, this is a matter of tens of millions, and if this continues, it could amount to hundreds of millions in lost government funds, plus claims for damages against the government as a result of affected players taking legal action against our government.”
The GCB has countered, maintaining that all license fees are paid directly into an official government account and that there was no room for funds mismanagement. Regarding the issue, the Board mentioned in their statement that “There is no scope for mismanagement. The assertion that funds may have been embezzled is therefore not correct. Once the payment has been received, the licence will be granted by the GCB,”
The BC.Game Bankruptcy Case and a Fresh Approach to Dispute Resolution
Stakeholders will be looking forward to the now LOK licensing system, which is set to make Alternative Dispute Resolution (ADR) mandatory. This will allow for more independent dispute resolution and will involve several out-of-court methods like arbitration, negotiation, and mediation.
The GCB statement also mentioned the BC.Game case briefly. It stated that the bankruptcy ruling on the operator was less insolvency-related and more administrative. The Board also confirmed that it had appointed a trustee who would oversee the payment of player funds.
This year saw Curacao-licensed operators come under increased scrutiny and even face fines in countries around Europe. On this issue, the Curaçao Gaming Control Board emphasized that it does not have the authority to enforce its regulations on operators in foreign jurisdictions.
While the board is committed to maintaining high standards within its jurisdiction, it concluded by saying that these operators must comply with the laws and regulations of the jurisdictions in which they operate.
Source: iGamingBusiness
