Investors interested in developing a business in the gaming and gambling industry can find the most suitable conditions and attractive legal framework in Curacao. This is given by the fact that Curacao has the longest experience in the gaming industry compared to all other countries.
Curacao has legalized the gaming sector since 1993, when it adopted a law that was created to regulate this industry – the National Ordinance on Offshore Games of Hazard. Therefore, those who want to start the steps for offshore company registration in this industry have the ideal environment in Curacao.
| Quick Facts | |
|---|---|
| Law on gaming/gambling in Curacao | National Ordinance on Offshore Games of Hazard |
Types of gaming licenses | B2C and B2B gaming licenses |
Entities that must obtain the gaming license | It is mandatory to obtain a Curacao gaming license for all types of operators involved in this industry. |
| Duration of the license issuance | The license can be issued in approximately 6 weeks. |
| Registration fee for gaming operators | During the registration, applicants are required to pay a fee of EUR 4,000. |
| Yearly license fee (yes/no) | Yes |
| Value of the yearly license fee | All licensed businesses will need to pay a yearly fee of EUR 12,000. |
| Main regulator of the gaming sector in Curacao | Curacao Gaming Control Board |
| Offshore bank account required (yes/no) | Yes |
| Documents to present for the issuance of the license | – certified passport copies, – police clearance certificate, – CV, – banking reference letter, – letter from an accountant and/or lawyer, – software agreeements, – website domain ownership proof, – the terms and conditions under which the business carries out its activity. It is mandatory to present personal documentation for all shareholders, directors, beneficial owners and authorized persons representing the company. |
| Certification/translation obligations | In order to obtain a Curacao gaming license, it is necessary to present certified and/or translated documents issued abroad.
Only documents issued/translated into English are accepted. |
| Deadline to submit translated/certified documents | Local authorites will accept translated/certified documents that have been issued/signed/stamped with maximum 90 days before the date when the application file is submitted. |
| Tax advantages for developing a business in Curacao | Gaming companies operating here are exempted from most of the taxes charged to businesses, as long as the company revenue is obtained from sources outside Curacao.
However, they must pay a 2% tax on the net profits. |
| The advantages of a gaming license in Curacao | – it is simpler to obtain a Curacao gaming license compared to other jurisdictions, – the process takes around 6 weeks (shorter amount of time compared to other countries), – a gaming license covers all gaming activities (it is not required to obtain a license per activity, as it can be the case in many countries), – low taxation, – low fees and operating costs. |
| Services offered by our team | – our consultants can help you in the process of incorporating a business, – set up an offshore bank account, – apply for the required licenses (in this case, a gaming license), – pay the necessary tax, – complete reporting obligations, etc. |
| License validity | 1 year. |
Mandatory registration forms | One can obtain a Curacao Gaming License by completing the Online Gaming License Application Form, the Business and Corporate Disclosure Form and the Personal History Disclosure Form. |
License transferability policy | Those who receive the gaming license are forbbiden to transfer their license to any third party. |
| Parties who can’t engage in gaming activities developed by the licensed company | – residents of Curacao; – persons with an age below 18 years old; – an employee of the licensed company; – any beneficial owner of the gaming company. |
| Obligations concerning a client’s account | Those who obtain a Curacao Gaming License can’t create gaming platforms that allow their clients to have a negative balance on their account. |
| Player registration obligations | License holders can allow players to engage in gaming activities only if they set up a player account, which must be used everytime when participating in any type of game. |
| Payments to winning players | Payments are made only through the player’s account. |
| Currencies for bets/wagers | They are established by the entity that holds the license. |
| Policies that must be respected by licensees | Any entity that will obtain a Curacao Gaming License must incorporate all the below-mentioned policies: – customer identification; – anti-money laundering; – player account; – responsible gaming; – player account suspension. |
| Can the license be suspended? (yes/no) | Yes |
| Situations when the license can be suspended | – the licensee is in breach of any of the laws mandatory for all license holders; – the licensee is suspected of offences such as money laundering, fraud, terrorism; – the licensee does not respect the financial obligations towards players; – the licensee is bankrupt, etc. |
| Can the license be suspended at the request of the licensee? (yes/no) | Yes |
| Mandatory reports | The licensee is required to report on any incidents breaching the applicable law, as well as on any security incidents. |
| Complaints from players | License holders must ensure a suitable procedure for dealing with complaints received from players. These complaints should be resolved in maximum 8 weeks since the date when they were received. |
| Are virtual currencies accepted as a means to pay players? | Yes |
Our consultants in offshore company incorporation can provide the necessary legal support to start a business in this industry.
Table of Contents
What is the Curacao gaming license?
The Curacao gaming license is a permit that must be obtained by all companies interested in developing business activities in the field or gaming/gambling. All operators must obtain the Curacao gambling license, and there aren’t any exemptions from this rule.
The main difference relies in the type of license a company must obtain. Currently, the Curacao license system provides for 2 types of licenses. Up until 2023, gaming operators were required to obtain either a master license, or a sub-license.
However, starting with 2023, the system has been modified and the authorities will issue, from now on, 2 categories of licenses as well, only that they are now known as B2C (business to client) and B2B (business to business) licenses.
Previous Curacao license holders, who were issued with master licenses or sublicenses, will be given a period of 18 months to transition from the previous licenses to the new ones, in accordance with the type of activity they develop.
Where to initiate the process of obtaining the Curacao gambling license?
The applications for the issuance of the Curacao gambling license are initiated on the portal of the Gaming Control Board. Investors interested in obtaining the license can apply directly on the platform starting with 15 November 2023.
The Gaming Control Board (GCB) is the sole institution in charge with the issuance of the license and has the responsibility to impose the procedures and stipulations of the National Ordinance on Offshore Games of Hazard (P.B. 1993, no. 63) Law.
Are there any prohibitions imposed to license holders?
Yes, the holder of a Curacao gambling license is prohibited from allowing certain types of clients to participate in games of chances, among many other requirements. Regarding this, it must be noted that the holder of the license can’t allow the following categories of persons into participating in gambling activities:
- the person is underage (under the age of 18 years old);
- the person is a resident of Curacao;
- the person is a representative/employee of the gambling company.
Additionally, it must be noted that all license holders are not allowed to let clients play gambling games on credit. Players can’t be allowed to play if they have a negative balance on their account.
Validity of the Curacao gaming license
According to the Conditions to Curacao Online Gaming License, Article 2, Paragraph 2, the validity of the license is 1 year. It must be noted that the process toobtain the license can take around 2 months.
What are the advantages of obtaining a Curacao gaming license?
Foreign investors who want to start the process ofoffshore incorporation in Curacao for a gambling business can have many advantages when choosing this business destination. Below, you can find out some of the highlights of this type of license:
- the Curacao license can be obtained in approximately 6 weeks;
- the corporate income tax is charged at a tax rate of 0%;
- companies are required to pay a tax of 2% on the net gains;
- it is also necessary to pay a registration fee of EUR 3,500, which is then charged on a monthly basis, reaching a total of EUR 42,000 per year;
- after that, once the company becomes operational, it is necessary to pay a license fee of EUR 18,500 on a yearly basis.
Therefore, the Curacao gambling license cost can be of minimum EUR 60,000, not including other costs, such as the ones necessary for the process ofoffshore company formation.
It is worth knowing that this document provides a major advantage in the sense that license holders are licensed for all types of gaming and gambling activities, in accordance with thetype ofpermit they will qualify for.
Given the development of the crypto sector, investors should know that cryptocurrency payments are also accepted, as long as the operators comply with the necessary anti-money laundering laws currently in force. The only regulator of the industry is theCuracao Gaming Control Board, which is also in charge with imposing the Anti Money Laundering laws.
Investing in the gaming industry can be very fruitful in the current context, as the sector is rapidly expanding. For example, in 2014, the industry accounted for minimum EUR 25 billion at a global level. In 2019, it increased above EUR 50 billion, while the estimates for 2023 show that the industry will further expand, reaching more than EUR 75 billion.
What is the Curacao gambling license cost?
We have mentioned above that the overall Curacao gambling license cost can be around EUR 60,000. The fee refers to the annual licensing cost, as the license has a validity of only 1 year, as mentioned earlier. Of course, those who want to continue their activity can renew the license.
In this case, they are expected to pay a Curacao gambling license cost following the same fee policy imposed upon the initial registration. Please know that the registration with the CGB portal is free of charge.
What is the process of obtaining the Curacao gaming license?
One of the main matters in obtaining a license in the gaming industry is to complete the process of offshore company formation. Although this process can be seen as a straightforward one, it is still required to conduct many operations.
Therefore, obtaining specialized company formation services is highly recommended, as local specialists will know all the procedures involved and the steps investors have to follow. During this process, it is necessary to gather all the documents required for company registration, which also implies addressing local institutions for the purpose of obtaining various certificates and licenses.
The company representatives have to contact all the institutions involved in this process, including the institution that can issue the gaming license. Paying the registration/processing fee is another obligation of all applicants.
All legal entities must also have an offshore bank account, therefore you must also contact bank representatives to complete this procedure. It is allowed to complete this step through the services of our company formation team, therefore you do not have to directly address a local bank.
Please know that our consultants can assist in the process of opening an offshore merchant account, which is necessary for online platforms that sell various goods or services to local and foreign clients.
We invite to watch a short video presenting how to obtain a Curacao gaming License:
What documents are necessary for the gaming license?
When you submit the application for the gaming license, you must prepare specific documentation. Please know that if you don’t provide the entire list of documents, the institutions can stop the processing of your application.
All applicants, regardless of the type of license they want to obtain, must prepare the following:
- the identity document and a copy of the passport;
- a resume;
- a utility bill that was issued in the last 3 months;
- a bank reference letter, in original.
Please mind that these documents have to be prepared following very strict rules. For instance, the copies of the identity documents have to be submitted as certified copies. Certification of documents is a common method that is also used during the process of offshore company formation.
Considering that the Curacao gaming license is issued for online gaming businesses, the company’s representatives must present information concerning the domain name that they have purchased for the online platform (proof of ownership is required).
They must also present details concerning the software they use, along with details concerning the rules and regulations for gaming activities (know-your-customer policies, gaming activities addressed solely to adult players, etc.).
It is mandatory that the documentation is prepared in English. All documents must have a date/signature that is not older than 90 days at the moment when the application file is submitted. Our team can also present the conditions you must fulfill if you want to obtain an offshore merchant account for your business.
Preparing paperwork is one of the most crucial matters when setting up a company in a foreign country, as many procedures have to be followed as such and sometimes, foreigners are unaware of certain procedures and this can lead to the delay of the overall process.
The same can apply when opening an offshore bank account, as each bank can have its internal policies regarding the minimum conditions imposed to foreign businessmen or foreigners who want to set up an account for personal purposes.
Therefore, we invite you to send any inquiry you may have to our team, who can help you in obtaining gaming licenses and any other licenses and permits for your business, depending on the business field. You can rely on us if you want to open an overseas bank accountas well.
Can a Curacao gambling license be revoked?
Yes, the Curacao authorities retain the right to revoke a gambling license provided that there is a suspicion or direct evidence that the license holder concluded any unlawful activities and/or any operations that are outside the conditions the license holder agreed upon the issuance of the documents.
The license can be revoked if the license holder violated any of the conditions and terms imposed as obligations, or if any of the parties that have concluded the offshore company formation for a gambling company are suspected of unlawful activities punishable under the Penal Code.
These activities can be related to money laundering, tax evasion, terrorism or any other type of activity that can be punishable under the Curacao law. A company licensed in Curacao can also lose the license if a player who has gained a sum of money is not paid as per the terms and conditions of the gambling activity.
It is also possible to revoke a Curacao gaming license when the winnings and credit balances of the gamers are improperly used by the company. Other reasons that can lead to this can be related to financial issues – the company does not have a sufficient return so that it can sustain its activities.
The law also stipulates that the license can be revoked provided that the owners of the company require this (for instance, if they want to close their business or if they want to enter other types of activities unrelated to gambling). The same is true if the investors want to close down their offshore bank account.
They don’t need to have a specific reason as to why they have decided to close it down, they simply have this right, which is extended to other types of accounts, such as the offshore merchant account. Of course, in some cases they may need to pay certain fees, as agreed in the contract with their financial institution of choice.
Curacao gambling can have many other advantages, including that the issuance of a Curacao gaming license is a straightforward procedure.Our consultants can help you learn more about the process.