Public Prosecutor reaches settlement with online casinos, providing services without verifying client identity is a criminal offense

According to the PPO, the online casinos failed to comply with the regulations applicable at the time of the investigation as they did not verify the identity of players in situations where this was required to do so. All legal entities have accepted the settlement offer but do not admit to any facts or accept any guilt under criminal law.

As a result of several media reports and multiple criminal complaints filed by Foundation for Representation of Victims of Online Gaming (Stichting Belangenbehartiging Gedupeerde Online Kansspelen), the Special Police Taskforce (RST) investigated seventeen gambling websites. This investigation, codenamed Nebraska, was carried out under authority of the Central Team of the PPO.

According to the PPO, the outcome of the criminal investigation confirms the suspicion that online players were able to create an account and subsequently deposit funds without their identities being verified. Despite the fact that online casinos were legally obliged to verify the identity of players before entering into a business relationship.

An adequate know your customer (KYC) procedure, which includes identity verification, is essential to prevent games of chance from being misused for illegal activities such as (identity) fraud or money laundering. It also serves to prevent minors or gambling addicts from using the services of online casinos.

The PPO sees several reasons to settle the matter out-of-court. Since the suspects are legal entities it is unlikely – in the event they are proven guilty – that the criminal court will impose a penalty other than a fine. Furthermore, this is the first time that the online gambling business on Curaçao is being held accountable for non-compliance with The National Ordinance on Identification of Clients when Providing Services (Landsverordening identificatie bij dienstverlening).

As a result of this settlement, eleven of the twelve legal entities paid a fine of XCG 22,500 to the country of Curaçao for each online casino it operated. This brings the total amount of fines paid to XCG 360.000.  In spite of its obligations under the settlement agreement, one legal entity did not pay its fine. For this reason the settlement agreement between the PPO and the legal entity has been cancelled. The legal entity will be summoned to appear in court.

Publication of this press release is part of the settlement.