The Curaçao gambling sector recently came under the responsibility of the country’s Ministry of Justice, and its head, Shalten Hato, has already introduced significant updates to the LoK regulatory framework.
Hato immediately began reforming the Alternative Dispute Resolution (ADR) process, which had been criticised for having a potential “industry-centric bias embedded in the complaints-handling system.” Earlier, iGaming Expert had pointed out possible shortcomings in the ADR policy. However, the latest reforms have eliminated the risk of “territorial ringfencing of ADR approval.”
These recent changes have largely removed concerns and closed potential loopholes in the ADR process. Hato has prohibited ADR providers from having any affiliate or B2B relationships with operators. Additionally, ADR officials are banned from offering any B2B services to Curaçao operators. Independent lawyers are now required to participate in the ADR process. To ensure neutrality and prevent bias, conflicts of interest are prohibited, and the Curaçao Gaming Authority (CGA) has the power to remove any ADR body at any time.
One of the key concerns was the requirement for an ADR lawyer to have experience in Curaçao, which raised fears that ties to the gambling sector would be unavoidable regardless of who was selected. The updated text emphasizes that official ADR entities only need to meet CGA certification criteria, and any requirement for local incorporation or Curaçao residency has been entirely removed. Furthermore, if lawyers are willing to undergo CGA due diligence, the process is effectively open to international professionals.
A notable innovation is the introduction of a 90-day deadline for handling ADR cases – a significant milestone for Curaçao, as no timeline previously existed.
Hato has strengthened the focus on consumer protection as Curaçao enters a new era of gambling regulation with the implementation of the LoK.
Equally important for all parties is the finality of ADR decisions: once the ADR process concludes, the dispute cannot be transferred to another ADR provider. This adds certainty and prevents “ADR shopping.” However, ADR decisions are binding only on operators, not on players. This means operators must accept any ADR ruling, while players may reject an unfavorable outcome and pursue the matter through other legal or regulatory channels.
As a result, operators are likely to act cautiously, realizing that a determined player can effectively “walk away” from an ADR decision and escalate the dispute through courts or other bodies, despite Curaçao prohibiting ADR from being reopened with another provider.
Hato’s initial steps may strengthen his position in the industry, especially after oversight of the CGA was transferred from the Ministry of Finance to the Ministry of Justice. This occurred amid a scandal involving Curaçao’s Finance Minister, Javier Silvania, who resigned. Among the main accusations against him was the issuance of several “provisional” online gambling licenses before the LoK came into force, raising doubts about their legitimacy. However, the CGA assured that the process of appointing new board members is underway and that LoK implementation is proceeding on schedule without delays.
The CGA’s Aideen Shortt stated: “Supervision and governance within the CGA continue uninterrupted. The Authority remains fully functional and independent, continuing to implement and enforce Curaçao’s new regulatory framework under the LOK.
“Despite sensationalist headlines and fake-news articles, there is no delay or deviation in the rollout of the LOK, and no disruption to the CGA’s licensing or compliance programmes.”
Hato is a far less polarizing figure and appears to be taking a tougher stance on money laundering in the country, publicly emphasizing that prosecutions for the crime have increased. At a recent parliamentary session, he presented statistics showing that 26 individuals had been convicted of money laundering. He also noted that the number of money-laundering cases related to drug trafficking increased last year, demonstrating a stronger crackdown on illicit finance.
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