Curaçao GCB Responds to Corruption Allegations in Licensing Reform

Curacao-gambling-regulator-refutes-licensing-reform-corruption-allegations The Gaming Control Board (GCB) of Curaçao has issued a strong rebuttal against allegations of corruption, fraud, and money laundering in its gambling licensing reform. The claims, brought forward by local politician Luigi Faneyte of the opposition Real Alternative Party, accuse the GCB of issuing licenses without proper legal authority and leading to financial mismanagement. Faneyte filed a report with the attorney general’s office on November 25, asserting that these practices have caused significant financial losses.

Addressing Licensing Allegations

Faneyte’s allegations specifically targeted Curaçao’s finance minister, Javier Silvania, suggesting that licenses were being issued unlawfully. However, the GCB clarified that it exclusively manages the licensing process, a responsibility it has held since 2020 when the Minister of Finance delegated this authority.

“The GCB has the authority to grant, amend, suspend temporarily, revoke, or deny licenses, as well as attach terms and conditions to licenses. The allegation that the GCB lacks the legal authority to grant licenses is therefore incorrect,” the board stated.

The GCB emphasized that its licensing process involves multiple rigorous stages, including document verification, due diligence on decision-makers, and an evaluation of business plans and websites. All interactions occur through the GCB’s online portal, ensuring transparency and enabling applicants to track their progress in real time.

Financial Integrity and Fee Payment

In response to accusations of financial mismanagement, the GCB underscored that licensing fees are paid directly into an official government bank account. “There is no scope for mismanagement. The assertion that funds may have been embezzled is therefore not correct,” the GCB asserted. Only after payments are confirmed is a license granted.

Enhancing Player Protections

The GCB also addressed recent concerns stemming from the bankruptcy ruling involving Curaçao-licensed operator BC.Game. The Foundation for the Representation of Victims of Online Gaming (SBGOK) had filed a case against the operator for failing to pay out player winnings. The GCB clarified that player complaints are currently managed by operators under their terms and conditions.

Looking ahead, the introduction of the National Ordinance for Games of Chance (LOK) will require mandatory Alternative Dispute Resolution (ADR) mechanisms. These measures aim to ensure independent evaluations of player complaints and strengthen the overall regulatory framework.

Foreign Compliance and Enforcement

Curaçao-licensed operators operating internationally remain responsible for adhering to the laws of the jurisdictions in which they operate. The GCB noted its limited jurisdiction over such matters but relies on formal decisions from competent foreign authorities to guide its enforcement actions.

Moving Forward

The GCB is collaborating with global experts to implement its new licensing framework effectively, which includes transitioning existing licensees to provisional licenses under LOK by 2024. This phased approach aims to ensure compliance with enhanced regulatory standards.

As the GCB continues to modernize its oversight capabilities, including exploring advanced technologies, it remains steadfast in its commitment to transparency and accountability in Curaçao’s gambling industry.

Source:

Curaçao gambling regulator refutes licensing reform corruption allegations“, igamingbusiness.com, November 29, 2024.

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Crooked L.A. Pol’s Aide Avoids Prison in ‘Casino Loyale’ Corruption Case

The former aide to disgraced ex-Los Angeles city councilman Jose Huizar dodged a prison sentence Friday despite being a point man in his boss’ corruption racket and initially lying to the FBI when the scheme unraveled.

George Esparza, Jose Huizar, Casino Loyale, Shenzhen New World, Wei Huang
Jose Huizar, above, was sentenced to 13 years in prison in January for tax evasion and racketeering after pleading guilty to extorting bribes from property developers. His aide, George Esparza, avoided prison after cooperating extensively with the FBI. (Image: NBC Los Angeles)

In 2020, George Esparza pleaded guilty to a single count of conspiring to violate federal anti-racketeering law. He was a major cog in the complex $1.5 million graft scheme that bought Huizar 13 years in prison in January for tax evasion and racketeering.

The investigation was codenamed “Casino Loyale” by the FBI.

On Friday, U.S. Dist. Judge John Walter sentenced Esparza to 12 months of home detention and 300 hours of community service for conspiring to violate federal anti-racketeering law. He must also pay restitution of $130,459 to the city of Los Angeles.

‘Extraordinary’ Cooperation

Walter went easy on Esparaza because of the defendant’s extensive cooperation with federal authorities, which the judge described as “nothing short of extraordinary,” as reported by The LA Times.

“In my 20 years as a district court judge … I have not seen a defendant who has provided such extensive and helpful cooperation to the government,” Walter said.

Huizar operated a sprawling pay-to-play scheme at City Hall that involved extorting at least $1.5 million in kickbacks from property developers.

As chairman of the Los Angeles Planning and Land Use Management Committee, Huizar had the power of life and death over major construction projects in the city.

When Chinese developer and owner of downtown’s LA Grand Hotel, Shenzhen World, wanted to embellish the property with a 77-floor mixed skyscraper, Huizar demanded inducements.

From 2013 to 2018, Shenzhen World chairman Wei Huang showered Huizar with “cash, casino gambling chips, flights on private jets and commercial airlines, stays at luxury Las Vegas hotels and casinos, expensive meals, spa services, prostitution services, [and] political contributions,” according to court documents.

Politically Exposed

Esparza was a frontman for Huizar, relaying demands for bribes using coded language. He accompanied his boss on numerous trips to Las Vegas with Wei and shared the perks.

Huizar and Wei made eight trips to Las Vegas casinos together from 2014 to 2016, some of which also involved Esparza, according to prosecutors.

The FBI was alerted to this arrangement by staff at the Palazzo Las Vegas who recognized Huizar as a prominent politician and therefore a “politically exposed person” (PEP).

Anti-money laundering directives urge casinos to pay close attention to PEPs because they present greater risk of involvement in bribery or corruption and therefore money laundering.

Billionaire Wei was not present at Shenzhen World’s 2022 bribery trial and is considered a fugitive by the U.S. government.

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