Curacao Pressured by Dutch MPs to Reform Gambling Regulations

There’s a range of risks to the gambling sector considering its nature of dealing with large sums of money, in cash or online. While monitoring of the vertical is in the hands of gambling regulators, it also falls under scrutiny by organizations that monitor global transactions, such as the Financial Action Task Force. In the fight against money laundering, Members of Parliament (MPs) in the Netherlands recently called for stronger regulations of the gambling sector in Curacao.

New Motion Encourages Lawmakers in Curacao to Tighten the Reins on Gambling

The topic was discussed last week in the Dutch Parliament. A two-minute debate on the matter highlighted risks related to money laundering and the need for tougher regulations in Curacao. Besides the debate, MPs filed a motion that encouraged the jurisdiction’s local government to undertake measures that will help better regulate the sector and combat unlawful activities.

As reported by local news outlets, the motion received the support of Dutch MPs, including Van Nispen, Michon-Derksen as well as Van der Werf. In the motion, the lawmakers pointed to the growing number of links between criminal organizations and legitimate businesses. According to those MPs, such links “undermine the integrity of public administration,” which is why it is imperative for Curacao to implement changes that will help in the fight against unlawful activities.

Changes to the Regulatory Framework Will Help Fight Crimes

The motion pointed to the importance of regulating gambling, recognizing it as a “national responsibility.” At the same time, MPs wrote that unlawful activities tied to the gambling sector put at risk Curacao’s government and its interests. An overhaul of the gambling regulations on the island is ultimately expected to benefit licensed operators by cutting ties to criminal organizations and fighting money laundering.

Following the introduction of the motion last week, lawmakers are expected to vote on the proposal this week. It is highly likely for the motion to pass, considering the strong support for effective gambling regulations.

While implementing draconian measures may be one way to combat crimes associated with the gambling sector, it is unclear if that’s the most effective way. Recently, a report called for urgent changes to the Dutch Gambling Act. The white paper released by the country’s research agency, WODC, deemed the current gambling regulations “inadequate,” supporting the implementation of targeted changes to protect Dutch gamblers.

Back in October, the Netherlands reported an increase in its gambling revenue year over year and a 95% channelization to the legal sector.