Crypto-gambling operator BC.Game, licensed in Curaçao, has contested a recent court decision declaring it bankrupt. Despite the ruling, the company maintains it is financially stable and committed to its sponsorship agreements, including partnerships with Leicester City Football Club and esports teams like Cloud9.
The bankruptcy case, overseen by Curaçao’s Court of First Instance, stems from claims filed in October by the Foundation for the Representation of Victims of Online Gaming (SBGOK). The non-profit advocacy group represents players allegedly harmed by offshore gambling operators, including BC.Game, and has pursued cases against several Curaçao-based companies.
SBGOK’s case against BC.Game is rooted in allegations of unpaid player winnings. Specifically, the dispute involves over $2 million in claims tied to the operator’s parent company, Small House BV. The conflict arose after Small House acquired BC.Game in February 2024, inheriting operations from its previous owner, Blockdance BV.
Blockdance was implicated in earlier complaints, including one involving a player who alleged they were owed $10,948. The company, however, claimed it had already addressed the issue before transferring operations to Small House in April.
’’ The non-profit seeks to advocate and represent the interests of players and victims of offshore online gambling. It has initiated a number of cases against Curaçao-licensed operators since its formation on 25 March 2019, including 1xBet.com’s 1xCorp and Usoftgaming. ’’
Small House argued that its acquisition excluded financial liabilities linked to prior operations, while SBGOK maintained that player losses resulted from systemic issues or misconduct. The court ultimately ruled that both Small House and Blockdance failed to meet their financial obligations, resulting in a bankruptcy declaration.
The controversy is further compounded by regulatory scrutiny. BC.Game has faced penalties for operating without licenses in jurisdictions such as the Netherlands and Australia. The Dutch Gambling Authority (KSA) imposed an €840,000 fine on Blockdance in October for offering services in the Netherlands without authorization. Similarly, Australian regulators issued warnings against the company’s activities in their market in 2022.
Amid these challenges, BC.Game secured a new gambling license under Curaçao’s updated regulatory framework, the National Ordinance for Games of Chance (LOK), in April 2024.
In a public statement dated November 21, BC.Game refuted the bankruptcy ruling and announced plans to appeal. “We strongly disagree with the court’s latest rulings and will spare no expenses to appeal this erroneous judgment which failed to give due consideration to facts. We are confident that justice will ultimately prevail,” the company asserted.
The operator also highlighted discrepancies in the plaintiffs’ evidence, describing the allegations as “lacking sufficient supporting evidence” and based on unverified claims. It emphasized that internal investigations revealed inconsistencies, challenging the validity of accusations brought forward by SBGOK.
Despite the legal turmoil, BC.Game assured stakeholders and partners of its financial stability. Leicester City Football Club confirmed ongoing discussions with BC.Game, emphasizing that the case is administrative and unrelated to liquidity concerns. “BC.Game has provided the club with the strongest assurances that they remain fully committed to meeting their obligations, including to the club,” a spokesperson said.
This case unfolds as Curaçao attempts to reform its gambling licensing system, which has faced criticism for insufficient oversight. SBGOK has been involved in other high-profile cases, including the recent bankruptcy of former master license holder Cyberluck.
For BC.Game, the legal challenges represent a critical moment. The operator insists on its compliance with industry standards and vows to protect its operations and user trust. As the appeal process begins, the outcome will likely have significant implications for both the company and Curaçao’s evolving regulatory landscape.
Source:
''Curaçao-licensed BC Game rejects bankruptcy ruling amid claims it owes players'', igamingbusiness.com, November 22, 2024.