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Curaçao License: Pitfalls, Benefits and Application Process

26 July 2019, 14:31
Votes: 1

Curaçao license is a solution for all types of gambling business: casino, sports betting, lottery and poker. The main feature of the Curaçao license is that the operator obtains EU operating license with a net profit tax of 2%.

Curaçao License: Pitfalls

Curaçao is a part of the island group often called the Netherlands Antilles, whose main part belongs to the Netherlands. The islands are located off the coast of South America and have been traditionally developed as the trade routes intersection. Historically, Curaçao was the stopping point for ships sailing from South America to Europe.

Currently, the unique status of the islands as part of the Dutch territory gives them special advantages such as the European Union country status and the absence of high tax rates inherent in the European continent. That was the trigger for multiple industries development, including distance learning, banking and investment.

How to Obtain a Curaçao License?

The Curaçao online gambling industry is regulated by Curaçao E-Gaming, a well-known licensing authority that provides eGaming and IP licenses for all online casinos. In 1996, online operation licenses were separated from land-based gambling licenses, and since then Curaçao E-Gaming has been granting licenses to entrepreneurs around the world. The Curaçao land-based gambling business is now controlled by the local Gaming Control Board.

The Process of Applying for a Curaçao License is Divided into the Following Stages:

Stage 1: Pre-Approval Process Completion

Before applying for a license, an applicant must start with requesting prior approval through a corporate service provider. It is usually provided within 24 hours.

The preliminary approval process is completed after the basic documentation submission and the payment of €1,500 fee.

Stage 2: Application

Stage 2: Application

A completed application for participation, together with the necessary supporting documents, including the established fee receipt, should be sent to the Curaçao eGaming gambling commission.

After receiving the application fee, the estimation process begins.

Approved applicants will be required to pay all the necessary one-time fees and deposits.

Stage 3: Application Assessment

If the IP application and the required attachments are incomplete or do not meet the requirements of IP eGaming, Curaçao eGaming should inform the IP applicant and attach a checklist indicating missing or inappropriate items. If all requirements are met, the license will be issued.

Stage 4: Initial Operations and Independent Audit

Within 60 days from the moment of obtaining the license, upon the completion of all three stages, the applicant must implement a plan and start operating.

If all documents comply with the requirements, the process can be completed within 2-4 weeks.

Creating a Land-Based Company

The main requirements for the company registration in the E-zone Curaçao are:

• Company administration should be performed exclusively in the E-Zone.

• Only an insignificant part of business operations can be carried out by persons who do not work in a company established in the E-zone.

• Company offices, work premises and / or warehouses in the E-zone are required to work during standard business hours.

• A company established in the E-zone must display its products and offer its services in or from the E-Zone.

• A company established in the E-zone must have a bank account in Curaçao.

• It is necessary to appoint local directors.

Curaçao License: Advantages and Disadvantages

Curaçao License: Advantages and Disadvantages

Many operators choose a Curaçao license because of its undeniable advantages. The advantages of this license, as a rule, include:

  1. Quick registration procedure. In addition, the process of Curaçao license obtaining is much easier than, for example, complying with the requirements of the British Gambling Commission.
  2. Favorable tax laws. Curaçao levies a tax of 2% on net income.
  3. Relatively inexpensive registration procedure. The basic license fee is $34,000 with a monthly surcharge of $5,600 for the first two years of use.
  4. Primary license holders are allowed to provide sublicenses. However, the main owner is responsible for all sublicense owners’ operations.
  5. Any type of gambling requires only one license.
  6. In addition to licensing, Curaçao eGaming provides technical and financial support for the online gambling industry. Some of these services include specialized services, private cloud servers, international finance, and assistance with other issues related to online casino launching.
Interesting Fact:

The most significant Curaçao license disadvantage is that it is not considered prestigious. Everyone who has certain financial capabilities and honest business can obtain a gambling license.

Players are well aware that Curaçao licensing standards are significantly lower compared to other jurisdictions where license obtaining criteria are more demanding. In case a licensed casino suddenly disappears together with clients' money, Curaçao will not get involved. From a player’s point of view, the Curaçao license provides no guarantees.

Curaçao License for Cryptocurrency Projects

Curaçao License for Cryptocurrency Projects

One of the last year’s trends was the use of cryptocurrency in business. Gambling industry has not been spared by cryptocurrency as well. Previously, it had been used as a means of payment. And most recently, blockchain technology began to be used to create casinos.

Assuming that the introduction of blockchain technologies is a new trend, there are no one-size-fits-all solutions in this area yet. Each operator is independently developing a project.

It is important that in order to manage such projects it is necessary to obtain a special license. In fact, this is the same Curaçao license, but with additional conditions: higher price and duration of the registration procedure. In the future, such projects will cease to be uncommon, therefore the companies already using blockchain technology now will have a competitive advantage.

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