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“The Netherlands Antilles was one of the earliest participants to provide gaming licences to qualified applicants,” Herman Behr, chief executive of e-management in Curaçao, says.

And with the rising importance attached to credibility in the egaming industry, Curaçao is rightly beginning to attract a lot of interest again.

As one of the five islands that makes up the Netherland Antilles, Curaçao lies off the coast of South America. Although famed for its calm sunny climate, Curaçao is not just a tourist Mecca: it has a long history as an established financial centre.

Financial strength

Curaçao has been the home of the Dutch offshore banking sector since the late 1930s, and is a major player in the international funds industry. As a result, the island has a skilled workforce and an absence from any international regulatory blacklist.

“Curaçao’s stability, sophistication and business environment provide all the required elements for a successful e-business,” Behr says.

It is also one of the few jurisdictions with respected egaming legislation in place. Operators seeking to use Curaçao as a base need either to apply directly to the government for a master licence, under The Offshore Games of Hazard Act, or for a sub-licence from an existing licensee. In the latter, more common, case the operator is designated by the licence-holder as an information provider.

The former route can take as long as six months, the latter as little as a few days. Applying for a sub-licence is not a rubber-stamp procedure, however, and there are still some strict guidelines to adhere to.

The basic procedure involves an application and submitting a business plan, various Know-Your-Client (KYC) documents and a wealth declaration form.

“All egaming operators, small or big, are welcome in Curaçao, provided they can comply with the strict KYC rules,” Behr says.

The legitimacy of its egaming operations is an integral part of Curaçao’s approach.

Legitimate operation

“Curaçao seeks to assure customers of the legality of internet gambling, the security of their business and legitimacy of their operation. Its strict adherence to complying with KYC rules, combined with absolute confidentiality has proven to be the key competitive edge as an international financial centre,” says Behr.

For those who pass the test, a favourable tax structure is waiting just off the South American coast. For companies granted an e-zone status, a formality for most egaming operators, there is a simple tax rate of 2% on net profits, and an exemption from all import duties and sales taxes.

To qualify, a company must be established in an economic zone area and direct its product offerings towards markets outside of the Netherlands Antilles. There are no additional taxes other than a monthly gaming licence fee, which varies depending on whether the owner is a master or sub-licensee.

Top-tier telecoms

The telecoms infrastructure compares favourably with the competition, with Curaçao offering safe, reliable, 24/7 hosting and a state-of-the-art expandable fibre-optic network.

This is due to the domicile’s well-developed e-commerce sector and a deregulated telecom market.

“Brand new fibre-optic networks such as Arcos and Americas II put Curaçao on the map for the profitable online companies,” Behr says.

“They are environmentally controlled and in addition to the secure facilities, uninterrupted power supplies, 24/7 monitoring and substantial bandwidth, Curaçao has everything you need to meet your web-hosting needs.”

Behr insists the government is committed to the future of the egaming industry, and will continue to build its infrastructure to cope with cross-border information, products, and taxation. But whatever happens in the future, there is no doubt Curaçao has a great deal to offer any egaming operator.

“Curaçao is an attractive solution,” Behr says. “Unlike many other domiciles we can offer the synergy between the available technological infrastructure and the long-standing experience as a financial centre.”