Under the new LOK gambling policy in Curaçao, licensed operators are required to provide alternative dispute resolution (ADR) services to players to help prevent disputes from escalating to court.
Requirements under the ADR policy have been outlined in a consultation document released on 24 February by the CGA (previously known as the GCB/Gaming Control Board).
ADR providers will be separate entities from the B2C licensed operators, and their role is to offer independent and impartial advice while handling player complaints that cannot be easily resolved by customer services.
ADR providers, approved by the CGA, will be responsible for determining whether a case filed by a player requires mediation or adjudication and will liaise with the relevant parties to gather all pertinent information related to a case.
However, ADR entities will not have the authority to investigate a dispute beyond the evidence provided by those involved. When handling sensitive information, the CGA stated that ADR divisions are expected to report relevant details to the regulator.
This could, the CGA noted, point out where industry-wide issues are occurring.
**ADR expertise requirements**
It will be mandatory for ADR divisions to operate standalone websites accessible to players outside of the operator’s products. The entity must be based in Curaçao.
Regarding staff requirements, each team must include a qualified lawyer and at least three staff members, all with gambling industry experience.
Applications for ADR approvals are currently being accepted by the CGA and are anticipated to take six weeks.
High-profile player cases prompt ADR policy formation
The formation of an ADR policy was first hinted at in November when Curaçao-licensed operator BC Game was involved in a high-profile player dispute case that led to it being declared bankrupt by a local court.
BC Game was licensed under the regulator’s previous master licence framework and was taken to court by a group of players who claimed to be owed large sums in winnings.
Both BC Game’s founding company and the business to which it was subsequently sold were declared bankrupt, allowing players to claim compensation through the process.
The case brought about allegations of corruption, fraud, and money laundering within the CGA’s new licensing framework from opposition politician Luigi Faneyte.
The CGA refuted these claims and stated it would establish an independent ADR policy to resolve legal disputes outside of court within its LOK framework. This would include measures of mediation, arbitration, and negotiation.
Parliament approved the LOK framework in December, marking a new era for gambling regulations on the island.
One of the objectives of the LOK is to enhance Curaçao’s reputation as a haven for grey market operators. Minister of Finance Javier Silvania previously described the reforms as a “safety net” against unlicensed gambling operators.
The new system provides multiple application types for B2B, B2C, and B2B2C operators.
The Curaçao Gaming Authority (CGA) has requested feedback from operators on its new alternative dispute resolution (ADR) policy as part of a public consultation running until 8 March.