The Curacao Gaming Authority ("CGA") has launched a formal process for the recognition of independent gaming test laboratories ("Testlabs") that wish to provide testing services to Cura?ao-licensed operators.

A Testlab is defined as an independent, accredited laboratory that tests gambling software and systems, such as RNGs, games, and platforms, to ensure they are fair, secure, and compliant with regulatory technical standards. Testlabs cannot provide regular B2B services, or any services of liberal professions, such as lawyers.

For this purpose, CGA also incorporates the public Register of Recognized Testlabs, which is not an endorsement but rather confirmation that the entity meets the regulator’s minimum regulatory and technical standards.

CGA Testlabs’ Recognition

To be recognized, a Testlab must comply with two main requirements:

1. Technical Compliance

To be considered compliant, Testlab must hold a valid ISO/IEC 17025 accreditation – the international standard for the competence of testing and calibration laboratories.

The accreditation must be issued by a recognized national or international accreditation body that is a signatory to the ILAC Mutual Recognition Arrangement (MRA) or by a comparable body such as UKAS.

The scope of accreditation must explicitly cover:

• Testing of online gaming systems;
• Random Number Generators (RNGs);
• Game fairness;
• Return-to-player (RTP) calculations;

Other components necessary to validate compliance with CGA-recognized standards.

As for the technical standards, CGA accepts standards from the following jurisdictions: United States (New Jersey, Pennsylvania); Canada (Ontario, British Columbia); United Kingdom; Malta.

2. Corporate compliance

To obtain the CGA recognition, Testlab must provide the regulator with: (a) a signed declaration of impartiality, and (b) corporate documentation.

The declaration of impartiality is required to confirm Testlab independence from B2C operators and B2B software suppliers. Therefore, general restrictions apply:

The Testlab must not participate in the design, development, programming, or manufacture of gaming products;

There must be no conflicts of interest, including:

• No financial interest in or involvement with B2B providers, manufacturers, distributors, or B2C operators;
• Independence of methodologies and reporting.

Corporate documents include the organizational and governance structure of the Testlab, details of an authorized representative, contact information for the primary office or branch interacting with the regulator, as well as any other document CGA can request further.

CGA Testlabs’ Certification

After the documents’ submission, in six (6) or a maximum of twelve (12) weeks, CGA will issue a certificate of recognition for compliant Testlabs which will make it easier for them to work in the market and will allow them to gain recognition from international stakeholders. The certificate is valid for up to three (2) years and is issued to natural or legal persons, who does not need to be incorporated in Cura?ao.

Once certified, Testlab will become subject to reporting obligations – which is a general requirement to notify the CGA of any material changes or incidents within three (3) working days of awareness (e.g., regarding winding up of the company, change in shareholding, control, key management positions, and etc.)

It shall be noted, that CGA certification of recognition can be withdrawn at any time if the Testlab fails to maintain compliance with the applicable criteria.

4H Opinion

CGA invitation for independent gaming test laboratories to seek recognition marks a significant step in the island's ongoing regulatory reform. This move underscores CGA's commitment to enhancing the integrity and fairness of its gaming sector.

However, while the initiative is commendable, it also highlights some challenges. Notably, the CGA is planning to establish its own technical standards which are not provided as of now, when interested Testlabs are starting to obtain the certificates.

The current regulator’s approach relies on technical standards from other jurisdictions and will be changed with time. This reliance may create uncertainty and even lead to certificate withdrawals for Testlabs, as well as operational challenges for operators, who must navigate varying international standards while awaiting a unified local framework.

Furthermore, the CGA's approach after LOK enactment still suggests a phased implementation of partial regulations, with expectations of additional guidelines and mandates in the future. This incremental rollout, while allowing for adaptability, may also lead to ongoing adjustments for stakeholders striving to remain compliant.

Image credit: Casino Guru News