Under the new LOK gambling policy in Curaçao, licensed operators are required to provide alternative dispute resolution (ADR) services to players, aimed at preventing player disputes from escalating to court.
Requirements under the ADR policy have been detailed in a consultation document released on 24 February by the CGA (previously known as the GCB/Gaming Control Board).
ADR providers will be independent entities separate from the B2C licensed operators. Their role is to offer impartial advice while handling player complaints that cannot be easily resolved by customer services.
Approved by the CGA, ADR providers will assess whether a case filed by a player needs mediation or adjudication and will facilitate communication between the relevant parties to obtain all pertinent information related to a case.
However, ADR entities will not have the authority to investigate a dispute beyond the evidence provided by the parties involved. When revealing sensitive information, the CGA has stated that ADR divisions are responsible for sharing significant details with the regulator.
This could potentially indicate where industry-wide issues are arising.
**ADR expertise requirements**
ADR divisions will be required to operate standalone websites for players to access independently of the operator’s products. The entity must be based in Curaçao.
Regarding staffing, each team will need a qualified lawyer and at least three members with experience in the gambling industry.
Applications for ADR approvals are currently being accepted by the CGA and are expected to take six weeks.
**High-profile player cases prompt ADR policy formation**
The formation of an ADR policy was first suggested in November when Curaçao-licensed operator BC Game was involved in a prominent player dispute case, resulting in it being declared bankrupt by a local court.
BC Game was licensed under the regulator’s previous master licence framework and faced legal action from a group of players claiming to be owed significant winnings.
Both BC Game’s founding company and the business it was subsequently sold to were declared bankrupt, allowing players to seek compensation through the process.
The case led to accusations of corruption, fraud, and money laundering within the CGA’s new licensing framework from opposition politician Luigi Faneyte.
The CGA refuted these claims and announced the establishment of an independent ADR policy to resolve legal disputes outside of court within its LOK framework. This would include mediation, arbitration, and negotiation measures.
Parliament approved the LOK framework in December, marking a new era for gambling regulations on the island.
One of the goals of the LOK is to enhance Curaçao’s reputation as a refuge for grey market operators. The finance minister, Javier Silvania, previously described the reforms as a “safety net” against unlicensed gambling operators.
The new system offers 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.