Exclusive: Pinnacle supportive of Curaçao gambling legislation

Pinnacle CEO Paris Smith is willing to offer her company’s online gambling expertise to Curaçao officials with the island under pressure to form a new regulator in just four months’ time.

The pandemic has left Curaçao relying on aid from other nations, including the Netherlands, although these handouts have not come without consequences.

As part of a third financial settlement package with the Dutch government, the island has agreed to formulate a legitimate gambling regulator and sustainable regulation by March 2021.

And Smith is confident the Curaçao government can execute a quick turnaround despite the tight deadline since some foundations are already in place. “If it’s done right, it could be a very positive thing for the island,” Smith told EGR.

“They [Curacao government] want to understand gambling and they are serious about it, they were already looking into it before the start of the pandemic and, because like every other place in the world they’ve been affected by Covid-19, they see the need to develop an existing economic pillar, but even more so due to the loss of tourism.

“They want to be able to create jobs and effectively regulate, so I’m optimistic they will achieve that by the March deadline,” she added.

The Pinnacle CEO welcomed the move towards gambling regulation

EGR understands an initial license fee of $50,000 is being considered as Curaçao bids to legitimise its online gambling framework, which has long been neglected.

Historically, the government granted responsibility for gambling to a handful of master licensees, who can provide operators with licenses for a fee. That was sufficient years ago, although the gaming world has since moved to a more stringent regulatory framework.

These licenses are not subject to the same amount of scrutiny as in other jurisdictions like Malta, and the format has seen the Curaçao government fail to reap any financial reward from the taxation of operators, while the island has seen little benefit.

An estimated 2,500 operators are licensed in Curaçao under these arrangements after master licensees were originally handed power by the island’s Ministry of Justice. Power has now shifted to the Ministry of Finance for oversight of gambling.

However, the new-look legislation is likely to introduce a genuine tax rate, which Pinnacle hopes will bring igaming operators to the island, rather than drive them away.

Provided the tax rate is reasonable, Smith is in favour of legitimate legislation as it would reduce the stigma associated with Curaçao-licensed igaming firms, including Pinnacle.

“The moment you mention you are licensed in Curaçao, the tone of the conversation changes and it’s as if there is a black mark against you for being licensed here,” Smith told EGR.

“Having a framework like this would give everyone stability and certainty. It would allow the island to generate substantial revenues from operators and it would allow the operators to have that reputable licensed operational base.

“The key is to be fair, transparent and genuinely understand the industry to make the best decisions for the country and the sector.

“The infrastructure here is very solid, it’s just the regulation which has previously been lacking,” she added.

Pinnacle has been based on the island for 21 years, while Smith has lived there for the last 14.

The operator’s 125-strong staff helps bolster the country’s economy, which is now under threat due to Covid-19 as vital international tourism revenue has dried up.

EGR understands several Manilla-based igaming firms have expressed an interest in relocating to Curaçao as they struggle to operate due to strict Covid-19 restriction enforcement in the Philippines.