Curaçao’s recent enactment of the National Ordinance on Gambling (LOK) has ignited significant concern, with critics labeling it a “money laundering law.” Financial expert and whistleblower Luigi Faneyte warns that this legislation could transform Curaçao into a sanctuary for organized crime, jeopardizing the international standing of the Kingdom of the Netherlands.
A Law for Reform or a Gateway for Organized Crime?
While LOK aims to introduce much-needed regulation to Curaçao’s gaming industry, Faneyte contends that it is fraught with deficiencies, permitting unvetted operators, including obscure “Maltese investors,” to dominate the market. He asserts, “We have handed control of our economy to faceless investors,” questioning the opaque assurances of job creation and economic benefits.
Under LOK, the Gaming Control Board (GCB) is set to become the Curaçao Gaming Authority (CGA), an ambitious yet underfunded transformation. With unclear guidelines, minimal staffing, and a history of incompetence, the GCB appears ill-prepared to oversee a rapidly expanding crypto-enabled gambling industry. The accumulation of lawsuits, bankruptcies, and player complaints against Curaçao-based casinos underscores Faneyte’s dire warnings.
The Crypto Wild West
One of LOK’s most alarming aspects is its implicit acceptance of cryptocurrency payments without adequate oversight. Despite explicit warnings from the Central Bank of Curaçao and Sint Maarten, as well as the Dutch Central Bank, the GCB has commenced accepting crypto payments on behalf of the government. Faneyte cautions, “This unregulated approach to crypto creates a magnetic effect for organized crime. Without a legal framework, the GCB has zero control over crypto flows, making the island a playground for money launderers.”
For instance, Dama N.V. secured a new Curaçao gaming license despite allegations of malpractice. Such approvals in an already overwhelmed and under-regulated system align with Faneyte’s concerns that LOK could position Curaçao as a global hub for illicit finance.
Scandals Amplify the Alarm
Recent failures of operators like Rabidi and BC.Game highlight the consequences of regulatory neglect. Both left players and creditors without recourse, exemplifying how weak oversight enables fraudulent operators to exploit the system and disappear without accountability.
The case of Dama N.V. further illustrates flaws in Curaçao’s regulatory framework. Despite its controversial history, Dama was granted a new gaming license, prompting outrage and calls for an independent investigation. This raises questions about whether Curaçao’s gaming authority is complicit or merely inept.
A Threat to the Kingdom
Faneyte’s gravest concern is the potential impact on the Kingdom of the Netherlands. LOK’s leniency towards crypto and its failure to enforce robust oversight could place Curaçao on the Financial Action Task Force (FATF) blacklist. Such a designation would tarnish the Kingdom’s reputation in the international financial system, deterring global financial institutions from engaging with Curaçao and triggering severe economic repercussions. Faneyte warns, “The chaos has begun, but the worst is yet to come. This law threatens the integrity of our country and, by extension, the Kingdom itself.”
He pledges to support players, operators, and stakeholders harmed by LOK’s implementation. As the gaming industry braces for potential fallout, the pressing question remains: Will the Kingdom of the Netherlands intervene to safeguard its global standing, or will it allow Curaçao to descend into regulatory and financial turmoil?
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