Curaçao Gaming Authority Seeks Operator Feedback on ADR Policy

The Curaçao Gaming Authority (CGA) has launched a public consultation on its new alternative dispute resolution (ADR) policy, inviting operators to provide feedback before the consultation period closes on 8 March. The policy is part of the updated LOK gambling framework, which mandates that Curaçao-licensed operators offer ADR services to players to prevent disputes from escalating to court.

The CGA, formerly known as the Gaming Control Board (GCB), outlined the requirements for ADR services in a consultation document released on 24 February. Under the policy, ADR providers must operate independently of B2C-licensed gambling operators and serve as neutral entities tasked with resolving disputes fairly. If a player’s complaint cannot be handled by customer service, ADR providers will determine whether the case requires mediation or adjudication and will facilitate the exchange of relevant information between the involved parties. However, ADR providers will not have investigative powers beyond reviewing submitted evidence. The CGA has also stated that when ADR divisions uncover sensitive information, they must share relevant details with the regulator, which could help identify broader industry-wide issues.

To comply with the new requirements, ADR entities must operate standalone websites that players can access separately from an operator’s platform. Additionally, they must be based in Curaçao. Each ADR team must include a qualified lawyer and at least three staff members with experience in the gambling industry. The CGA is already accepting applications for ADR approvals, with processing expected to take around six weeks.

The formation of a formal ADR framework follows a major player dispute involving Curaçao-licensed operator BC Game. In November 2023, BC Game was taken to court by a group of players who claimed they were owed significant winnings, leading to the company being declared bankrupt by a local court. BC Game had operated under the previous master licence system, and after both the original company and the business it was later sold to were declared bankrupt, affected players pursued compensation through the legal process.

The high-profile case led to allegations of corruption, fraud, and money laundering within Curaçao’s new licensing system, with opposition politician Luigi Faneyte publicly criticizing the CGA. The regulator denied these accusations and announced the establishment of an independent ADR policy to provide a structured process for resolving legal disputes outside of court. The new ADR system will include mediation, arbitration, and negotiation measures within the LOK framework.

The LOK framework was approved by Parliament in December, introducing a significant overhaul of Curaçao’s gambling regulations. One of the primary objectives of the reform is to improve Curaçao’s reputation as a gambling jurisdiction, particularly regarding its association with grey-market operators. Minister of Finance Javier Silvania has emphasized the importance of these regulatory changes, describing them as a “safety net” against unlicensed gambling activities. The new licensing system now provides multiple application categories for B2B, B2C, and B2B2C operators, marking a shift towards stricter oversight and increased transparency in the gambling sector.

By fLEXI tEAM