Final answer:
Curacao is globally recognized as a Caribbean island hosting online gambling, due to its comprehensive regulatory framework that attracts many online gambling businesses.
Step-by-step explanation:
The Caribbean island well-known for hosting online gambling is Curacao. This island has established itself as a hub for internet gaming, attracting online gambling businesses with its favorable regulatory environment. Curacao offers a single license that covers all forms of online gaming, making it an attractive destination for operators looking to run online casinos, sports betting, and other gambling platforms. Even though other Caribbean islands are working to increase their visibility in financial services, Curacao stands out in the online gambling sector.