For those who decide to open an online casino, bookmaking company, or combine both directions, the issue of receiving an appropriate license arises at the early beginning. What are the benefits and disadvantages of a Curacao license? How long does it take to get it? How much does it cost? The BetProduct representatives will answer all these questions specifically for Login Casino.
What is Curacao, and why has it become the place for receiving a gambling license?
The picturesque country called Curacao is situated on the island of the same name, which is located on the south of the Caribbean Sea and not far from Venezuela. Officially, it is part of the Kingdom of the Netherlands, which has the same rights in this union as the well-known European country with the capital in Amsterdam.
In practice, Curacao is a small independent island country with its own laws and business approaches. Due to the lack of drinking water and insufficient rainfall, this state cannot rely on agriculture and related industries. Even though there is a refinery situated in its capital city Willemstad, it gives only about 15% of the whole economy of the country. In such a situation, the regarded state was forced to find other sources of finances.
So, during the 20th century, Curacao turned its look at tourism. The picturesque beaches attract a lot of tourists, but transforming its sea-port into a free trade zone has given even more to the economy. The government understood that it could earn enough money if it created advantageous financial conditions for other countries. It led to changing fiscal laws and opening borders for international digital financing activity. It began to provide other countries with gambling licenses as an outcome.
In fact, as the experts from BetProduct, a provider of gambling software, report, the island of Curacao was one of the first to start licensing foreign online gambling providers. According to their data, at present, over 450 online casinos in the world work with this permission.
Traditions of offshore business on the island
The success story of the offshore financial destination began in 1993 when the National Ordinance on Offshore Games of Hazard was presented. In three years, the first licenses for online gambling could be given, and Curacao became one of the world's most welcoming countries due to their low taxes and friendly environment in this business sphere.
An important event for online gaming took place in 2001 when the Curacao Internet Gaming Association appeared. It controls the activity and legislation in the online gambling sphere and is a member of the Interactive Gaming Council.
In order to join an international anti-money laundering (AML) community, which is combating financial terrorism (CFL), the government of Curacao has announced the appearance of AML-CFL in their country. What is interesting, the EU is still on the path to adopting AMLD5 across its members, while the little island has already made this step.
Another important aspect that relates to Curacao gambling traditions is the availability of the interested parties to receive two kinds of certificates: a master license and sub-license. Both of them are covering the whole spectrum of possible online gambling, including sports betting, random-number generator games, poker and fantasy sports. It means that the owner of only one license received in Curacao can provide all the possible gambling activity.
However, those who want to receive a Curacao master license can relax – there are only four holders of this kind of certification, which are giving sub-licenses to others. They are Cyberluck Curacao, Gaming Curacao, Curacao Interactive Licensing, and Antillephone. Nevertheless, it doesn't mean that dealing with smaller organisations is an easier task as they try to set the newest rules for getting a valid license.
The situation with getting a gambling license in 2020
Amid the primary reasons why gambling licenses are in demand is the predictions for this industry. Thus, online casinos and bookmaking websites are showing steady growth for more than a decade, and the forecast for the upcoming years is also positive. The situation with coronavirus signaled that tough social changes could lead only to an increase in interest in gambling.
There are still a lot of fake and short-life gambling providers, who are offering higher odds or other tempting conditions to attract clients, and then disappear. However, those who understand that the industry is gaining momentum, the issue of licensing and developing this business is a must. A desirable certificate allows growing of the gambling company without risks to get banned or his owner to be imprisoned.
Also, modern online gamers tend to check the credibility of the platform they use for entertainment. They understand that gambling licenses like Curacao's one are the guarantee of much higher online security and the ability to resolve contradictory situations. In practice, it begins on the registering and depositing stages, when the client forms the first impression of the firm. So, having a gambling license is a must for those who come to the regarded business and want to receive long-lasting benefits.
Financial aspect: how much a Curacao gambling license costs and related spendings
Curacao gambling license cost
Approximately, the needed certificate will cost about 20 000 euros annually. However, it's not a fee for the application or other services. Thus, before requiring a gambling license, one has to register a trusted company in Curacao, sign an IP agreement, and organise hosting and server conditions for a new firm functioning. The numbers are like €7000, €9000 and €4000 accordingly, and their sum leads to €20 000 per year that has been mentioned above. However, those numbers can vary depending on some additional factors, but those average spending can be an orienteer.
Taxes and related fees
Among the primary advantages of receiving a Curacao's gambling license is their 'fantastic' 2% net profit tax. It opens wide opportunities for business owners to enjoy this kind of proposition from the Netherlands Antilles.
Possible additional spendings are mostly related to the master license provider and your wishes. As one of the aforementioned companies is responsible for other sub-license firms, they can ask for additional documents or certificates that can cost a few extra thousand euros.
How long does it take to get a Curacao gambling license?
The BetProduct experts inform that the process of receiving a certificate for online casinos and betting websites usually takes six weeks or 1,5 months. It includes opening a trusted firm in Curacao, finding a needed hosting provider, and collecting all the other documentation. Be ready to present: CV, passport, utility bills, reference letters, bank accounts, diverse certificates that confirm the hardware equipment serviceability, etc.
However, one has to understand that this stage can take more time if some delays appear during the application process. It may be related to the procedures that are held on the island or missed preparation steps. Thus, master license holders can require a clear business plan, a well-functioning website, or appropriate staff for maintenance. So, if one relies on six weeks as the time for making gambling business from scratch, he is wrong and should do a lot of other preparation work before sending an application. Even casino software choosing may take a lot of time, nothing to say about hiring needed employees.
How to get a Curacao license from the first request?
“A significant part of applicants make mistakes while preparing for the procedure. In case of refusal, the license fee is not refunded to the person, therefore the turnkey service provided by BetProduct is highly popular,” the company's specialist says.
He clarifies that the client is being assisted in setting up a functioning corporate structure and collecting the required paperwork before contacting the Curacao gambling regulator. Thus, the future operator saves time, since thanks to the efforts of the company the receipt of the permission takes only three days, resources, and also gets a guarantee of successful completion of the licensing procedure.
Advantages of getting a Curacao gambling license
The major advantages of receiving a wishful certification in Curacao have been mentioned above, but there are also a few additional ones. The full list of benefits looks like the following:
- Single sub-license allows providing all the possible online gambling and betting activity.
- Incredibly low taxes and payments related to opening and maintaining the regarded permission.
- A rather fast process of receiving a license if all the preparation work was done appropriately.
- All the available infrastructure is present in Curacao, including opening a new firm, finding hosting providers, etc.
- The modern approach of master-license holders to the newest laws and regulations in the gambling sphere.
- Ability to implement crypto payments and join the AML-CFL community.
In general, Curacao looks like a desirable destination for those who want to receive a license for gambling activity. The legislation of this small country is aimed to make all the related procedures as simple as it is possible. Moreover, the government understands that maintaining aspects is also crucial, so everything starting from taxes and ending with choosing a hosting firm is a cheap and pleasant process. Furthermore, Curacao is keeping their finger on the pulse of the latest trends in the gambling industry, so joining AML initiatives or adding the newest depositing and withdrawal methods cannot be a problem if one has Curacao's license.
Disadvantages of possessing a Curacao gambling license
Amid the variety of possible gambling certificates, Curacao's one is among the most attractive due to the aforementioned benefits. However, there are some drawbacks related to this type of documentation:
- Cannot give permission to operate in some countries, which have their own license providers.
- Limited possibilities of the players to resolve controversial situations.
- Not the most authoritative type of gambling license, which doesn't give the highest-level guarantees for players that gambling provider is not cheating.
Even though Curacao tries to implement all the technical and legislative innovations into its licensing system, this country is still not considered as the most reliable place for registering a gambling company. In other words, if a player sees that a bookmaker or online casino has Curacao's license, he or she cannot be entirely sure that everything will be OK and all the needed protection steps are made.
For companies, it means that getting a gambling license in Curacao will not make a few initial steps towards authority on the market. There are plenty of other countries, whose licenses are serving as a guarantee for punters. However, it leads to a classic dilemma, whether the owner of the entertaining company should choose lower spendings or more authority.
Comparison of Curacao with other gambling licenses destinations
According to the representatives of the BetProduct company, at the current time, about 40 countries are suggesting diverse kinds of gambling licenses all over the world. Comparing Curacao's conditions with every state doesn't make enough sense as it will take too much time for reading and will only confuse the whole analysis process.
To make the situation a bit easier, we have grouped countries into five big categories, where the representatives of the same group will have very similar elements regarding gambling licenses. Such an approach will give the possibility to understand the primary strategies in gambling certification and compare them with Curacao's policies. We will not name particular countries in order not to confuse a reader as those categories are only our observations of the situation with gambling licenses.
Highly reputable licenses with strict regulations focused on the internal market
The representatives of this category are mainly developed European countries, which have decided to establish their own licensing to implement more control over the internal market. Some of them have even moderate tax approaches, but they are not the destinations for the rest of the world. As a rule, they have strict age restrictions but suggest reliable issue resolution policies, which can help players to resolve controversial situations. Amid their original ideas are full legality, tight control over the gambling operator, and durable protection of the players.
Compared to this group, Curacao looks more perspective in terms of taxes and chances to receive a license. Moreover, the country from the Netherlands Antilles is more predictable concerning the time of receiving a license as it is focused on international clients. In terms of players’ loyalty, almost all local license providers of gambling in Europe seem to be better for players. It means that choosing a Curacao license with the aim to conquer the country that can give its own reputable certificate makes a little sense.
Highly reputable licenses with proper regulations, aimed at international clients
Usually, such an approach is used by small but developed countries, which try to attract big international clients. As a rule, they have long gambling traditions and can be regarded as leaders in terms of implementing more protection or legislation renewals. Prices for a license in those countries vary from moderate to high, depending on the needs of potential gambling operators.
It's quite hard to compare Curacao with this group of states as the considered small island is on the way to this category. Today, Curacao cannot be regarded as the representative of this group due to some reputable conditions and rules, but the pricing policy makes them a favourable choice if someone makes an emphasis on it.
Moderate and flexible approach with some attractive conditions
That is probably the most widespread category in the gambling license receiving, and Curacao also belongs to it. However, one has to understand that different countries from this list may have diverse conditions.
For instance, Curacao looks attractive due to a moderate reputation, low prices, and a quite simple process of getting a license. Some other countries may suggest more authority but for higher rates, stricter application rules, or specificity of the licensing directions. Another can be quite cheaper but have some initial limitations concerning opening a business in such a state.
In general, the representatives of this group are aimed at some beneficial factors without forgetting other aspects. Those states with a good reputation cannot be included in the previous item due to reasons like small jurisdictions, limited gambling options, or short-term licenses.
Young representatives that are on the way to creating a balanced system
This category has one primary common aspect – a lack of reputation on the international market among both players and potential clients. Still, here one can find attractive propositions in terms of prices, adoption procedures, or player protection. However, they all seem to be interesting for the potential clients, who are looking for some local providers or quite specific needs.
Instead, Curacao looks a more balanced variant compared to those license providers as it suggests a moderate level in almost all directions. Nevertheless, if a potential business client is situated in one of the countries from this category and doesn't plan to expand internationally, even Curacao can be not an optimal variant.
A rather specific examples, which look not so attractive for the international partnership
States that form this category are hardly understandable, but they still exist. It seems that their initial aim is to create their own licensing centres to satisfy local needs. However, their rules seem to be not optimal even for the internal market. One can assume that they have made this step to legalise national lotteries, online poker sites, or something like this.
Curacao seems to be a perfect destination compared to the countries from this group, but one has to understand one crucial aspect. Countries from this group do not actually apply for some international recognition, and they are happy to satisfy the local market. It makes a little sense to compare Curacao with them as they are not competitors at all.
The issue of receiving a gambling license is quite a hard task as it includes numerous details that should be taken into account. They vary from price and appliance process to reputable conditions and legislation specifics. However, if one seeks help from the industry’s experts, such as the BetProduct representatives, most difficulties can be avoided.
Curacao gambling license is considered as one of the most flexible approaches to receive needed certification permission for online casinos and bookmaking. Their meagre taxes and a quite simple application process give them international recognition, although they are still on the way to a more reputable destination.
As there are a lot of countries that can give a gambling license, they are forming a rather big market in the regarded sphere. It leads to a natural competition among the states and the huge variety of possible items for comparison. To know more, we recommend reading the latest gambling news and reviewing other our materials on this topic.