Twelve online casino operators in Curaçao have agreed to an out-of-court settlement for not properly verifying player identities, a key requirement under the island’s law. This case is the first in which the Curaçao gambling sector has been held accountable for ignoring identity verification regulations. The Public Prosecutor’s Office (PPO) determined that these operators did not follow necessary Know Your Customer (KYC) procedures, which are essential to preventing fraud, money laundering, and underage gambling.

The settlement comes after an extensive investigation called Operation Nebraska, which examined seventeen gambling websites. This investigation began following media reports and complaints from the Foundation for Representation of Victims of Online Gaming, leading the Special Police Taskforce (RST) to investigate further under the PPO’s Central Team.

According to Openbaar Ministerie Sint Maarten, the investigation found several casinos allowed player accounts and deposits without verifying their identities, breaching Curaçao’s legal requirements. The lack of KYC checks is particularly concerning, as these measures protect against identity fraud, money laundering, and underage gambling.

KYC procedures are crucial for online casinos to know their users before forming business relationships. These safeguards are part of broader anti-money laundering (AML) measures to prevent the misuse of online gambling for illegal purposes. The PPO’s settlement underlines the importance of these procedures for compliance and protecting vulnerable players from gambling harm.

Despite the legal mandate, the investigation revealed that identity checks were inconsistent or ignored in some cases. This non-compliance led to significant legal consequences, including fines and the cancellation of the settlement for one operator that did not fulfill its financial obligations.

Under the settlement terms, eleven of the twelve operators agreed to pay a fine of 22,500 Caribbean Guilders (approximately €10,650.80) for each casino operated, totaling 360,000 Guilders (€170,412.80). Despite agreeing to the settlement, the operators did not admit guilt or accept the investigation’s findings. This settlement is seen as a practical solution since convictions in criminal court would likely result in fines, given the operators are legal entities.

One operator failed to pay its fine, resulting in the settlement agreement’s cancellation. The PPO will pursue legal action against this operator in court for not complying with the settlement terms.

This action occurs as Curaçao’s online gambling sector faces increasing international pressure. The jurisdiction has long been criticized for weak regulatory oversight and insufficient consumer protections. In response to scrutiny, Curaçao recently reformed its gambling regulations to align local operators with global standards. These changes are a significant step forward, yet challenges remain, as some operators continue to work under foreign licenses now deemed illegal by the Curaçao Gaming Authority (CGA).

The PPO’s action is part of a larger trend where jurisdictions are intensifying the focus on KYC compliance and anti-money laundering protocols in online gambling. This case highlights the growing role of technology in combating fraud and ensuring compliance, with solutions like biometric verification and advanced identity-checking methods becoming increasingly important for the industry.

• SCCG Management. The Gambling Industry’s Global Connector. Access Here.
• Source: SCCGManagement.com