Curaçao – the largest island belonging to the Dutch Caribbean. During a pandemic, the state received colossal support from Netherlands. As a response, the kingdom demanded significant changes in the legislation from the authorities of Curaçao. What influence will affect the gambling business, and how the license will be issued in 2021, will be considered in this article.
Content:
- Causes of changes in the conditions for obtaining license Curacao
- What is said in the contract?
- Cost on license Curacao will rise
- Tightening requirements for gambling organizations
- When preparing for reforms?
- Will virtual gambling establishments wish to stay in Curaçao after changing licensing
- Curaçao can find loopholes to avoid tax payments.
Causes of changes in the conditions for obtaining license Curacao
Interesting fact: Curaçao is the component of the Kingdom of the Netherlands, but the state does not enter the EU, which is due to its partial autonomy. European laws and restrictions related to gambling are not valid here. Official currency on the island is the Netherlands Antille Gulden (ANG).
LandSpakket Curacao agreement has been concluded between the Curaçao and Kingdom authorities. It provides for reforms due to which the state in the future should achieve stability in the field of finance and economy. The Governments of the Island and the Netherlands concluded that such measures are needed, since the economic recession over the past year as a whole amounted to 30%. This value continues to increase due to the fact that the second wave of coronavirus infection has occurred. The content of the document is posted on the site of the Central Netherlands Government on November 2. At the same time, a message was received from the US Secretary of State a message for the House of Representatives and the Royal Senate on the agreement of the Netherlands and the Isle of the Third Trench of Economic Support of Liquidity in 2020.
What is said in the contract?
LandSpakket Curacao Agreement provides a change in several areas: government, social garant and education, state economy and strengthening the rule of law. As for reforms in the field of gambling entertainment, the last section. According to this Agreement, the Curaçao government is obliged to perform a voluminous analysis of the virtual and ground sectors of the gambling industry. According to its results, a plan for improving and changes in the gambling market will be developed.
The basic requirements are as follows:
Release the law and relevant regulations on the autonomous state authority regulating the gambling business.
- Develop a scheme for monitoring and control over to gambling organizations with licenses Curaçao respected local laws and requirements of the state for the services of which services are provided.
- Ensure the direction of profits from gambling entertainment and tax fees in the state budget.
In addition, in the text of the document it is said that the Government of the island independently develops a schedule for integrating reform. The authorities of the kingdom were named only two mandatory dates, which will be discussed below.
Licensing authority – Curaçao Gambling Control Council. The Gaming Control Board (GCB) will start working in March of this year. It will issue relevant licenses to gambling organizations and bookmakers, as well as monitor compliance with the operator of local laws and requirements.
Selecting applicants for obtaining a license, this department will use the most strict policies. Such actions are due to the Order of the Netherlands authorities – to prevent all illegal activities under the cover of gambling establishments. Including, meaning money laundering or sponsoring terrorist organizations.
In addition, the authority of the Gambling Council will include the collection and accounting of the movement of money and taxes from the profits of providers. Thanks to strengthening control over gembling, operators with an unreliable reputation that resorted to the licensing of Curaçao to work without adhering to the requirements of the remaining jurisdictions. To this opinion came to the Ministry of Finance of the State. Undoubtedly, issuing licenses for gambling establishments is one of the most promising state budget profit articles.
According to preliminary data, the price of a new gambling license will reach 240 thousand Netherlands Antille Guldenov (133 thousand dollars). At the moment, this amount is approximately 35 thousand dollars. However, the issuance of new master licenses by the current regulator is not made. The following licensees are operating on the island: Curacao Interactive Licensing (CIL), Cyberluck Curacao and The Elite Surf Club.
According to reports from the Ministry of Finance Curaçao – the government does not know about two organizations. Since the state is completely absent from the state, unknown companies can safely engage in issuing a license, formally verifying the applicants. The Islands Ministry of Finance declares that the price of such subceneurs is about 111 thousand dollars. The whole amount is fully run by the state budget, while licensees are engaged in their activities around the world, using the famous reputation of Curaçao.
Cost on license Curacao will rise
Specific information about the fact that in the future we are waiting for the licensing institution in the insurance package, there is no. The likelihood of its liquidation is high, as the main thing that requires the power of the kingdom is to create a single authority issuing licenses. In addition, it is unknown that it is waiting for operators who have received permission to reform.
Tightening requirements for gambling organizations
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AK as in the Netherlands there are quite strict laws of the European Union, companies issuing licenses should be prepared for updated standards. Namely, such moments will be taken into account:
The provider will have to confirm that it is financially reliable, honest and able without delay to pay jackpots and large winnings.
Compliance with the requirements of the European Union governing the confidentiality of personal data of the players.
It is forbidden to change, distorting IP addresses of customers, as well as aggressive advertising on the Internet.
The new regulator will be constantly analyzed, and test operators that have received licenses. If necessary, the latter are required to present all the information confirming that new requirements are observed.
Additional events in the framework of the tax system change will be:
- expansion of the tax base, fees for income taxes, corporate taxes, as well as licensed taxes from each provider, regardless of license type;
- the creation of an indirect taxation system, the introduction of a mandatory collection from the implementation of services (according to preliminary data it will be at least 12.5% of sales);
- the creation of a general system of controlling the tax, banking and customs industries, so it will be easier to follow financial transactions carried out by operators;
- restriction of the administrative intervention of civil servants to ensure preferential conditions for licensees, including the provision of tax holidays;
- Introduction of general tax and banking regulation for the islands that are part of the Netherlands and the Kingdom itself for the purpose of tracking tax payments.
To date, the master licensees pay 2% of corporate tax. Control over them with relevant organizations is practically not conducted, so the necessary deductions do not fall into the state budget. The activities of most sub-licenseates are conducted in the markets that are not related to Curaçao, but recognize the state license of the state.
When preparing for reforms?
According to Kenneth Gisbert, who heads the Islands Ministry of Finance, the authorities of Curaçao are positively configured to changes in the field of gambling industry. He expressed categorical disagreement with the opinion of some specialists who declare that reforms on the island are held due to the pressure of the Netherlands government. Gisbert argues that the proposal was initially arrived directly from the authorities of the island. He said that the online gembling sector in Curaçao is one of the largest in the world, but independently the state has no benefit from this that it is necessary to urgently correct.
In the Ministry of Finance, commenting on future changes, remember the positive experience of the reform of the informative industry in 2010 in 2010 in Malta. The task of the Government is that, above all, the benefits of licensee activities were felt by residents of Curaçao, and after – the markets for which operators work.
Will virtual gambling establishments wish to stay in Curaçao after changing licensing
Since the exit of the contract, current providers and experts began to fear that there will be a significant reduction in the available licensee audience. As a result, the revenues of operators will decrease, which means that Igor licenses will massively refuse.
In the Ministry of Finance, these concerns dispelled. Kenneth Haybert argues that reforms are beneficial for both operators themselves. The government will increase industry financing, will provide more official vacancies, organizes a digital learning process and advanced training system. Thanks to such measures, the gambling market in Curaçao will be prestigious and attractive for potential investors. In the first stages, operators will actually be forced to adapt to altered conditions. The Ministry of Finance adheres to the opinion that this is the only way to avoid cash outflow by the state budget.
In fact, local markets can suffer, for example, Australia, in which the maximum number of gembrelors per capita. Here, more operators operates on licenses Curacao. In addition, the Spanish market and the Netherlands market may fall, or rather their mainland. According to information from the National Senate, in Spain, gembler providers also work in the shadow sector, since in the current legislation. Conclusion
Curaçao can find loopholes to avoid tax payments.
On the regulated market of providers in Europe reforms will affect less noticeable. Most of the states that are part of the European Union have already made changes to the laws in accordance with the requirements of the European Commission, and therefore the operators are already known to the measures that are going to take in Curaçao. It is possible that licensees from Romania, the Czech Republic and Hungary will fall under the blow – in these countries the shadow sector is sufficiently developed.
Curaçao Ministry of Finance believes that the reform of the gambling industry for the year will bring 100 million ANG to the state budget (about 56 million dollars). Master licensees will be carried out 2 times more deductions, that is, not 10 thousand ang, and 20 thousand. However, the main dynamics, according to the government, will be created by sublicenzia. It is planned that the upgrade process will be completed by September 1, 2021.