Curaçao-licensed crypto gambling operator BC Game has rejected a November court ruling that declared it bankrupt and has assured its sponsorship partners Leicester City Football Club and esports teams Cloud9 and GuardiaN that it “has no issues with liquidity.”
The case against BC Game, heard by Curaçao’s Court of First Instance, relates to bankruptcy petitions filed against the operator. These were made by player advocacy network, The Foundation for the Representation of Victims of Online Gaming (SBGOK) in October.
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.
In BC Gaming’s case, the bankruptcy ruling relates to its parent-company Small House as it failed to pay out over $2 million (£1.6 million/€1.9 million) in player winnings after acquiring BC Game in February.
BC Game’s previous owner Blockdance was also embroiled in the case, as one of SBGOK’s claims related to a player that claimed they were owed $10,948. Blockdance BV argued it had credited the player. It said it handed control of the BC Game site over to Small House in April.
But Small House argued that it had not assumed financial liabilities towards existing players when it acquired the operator. The player losses were down to system issues or improper practices, SBGOK had argued.
The court ultimately decided that both companies had failed to meet their financial obligations to players and declared them both bankrupt. Players will be able to claim for compensation through the process.
BC Game operated illegally in Australia and Netherlands
BC Game has been flagged by numerous gambling regulators for operating illegally without a licence in both the Netherlands and Australia. The Australian Communications and Media Authority issued previous owner Blockdance BV with a warning to cease offering online casino games in the market in October 2022.
Meanwhile Netherlands’ gambling regulator KSA issued Blockdance with a €840,000 fine on 18 October for operating the BC Game brand in the market without a local licence.
BC Game to appeal “erroneous judgement”
In a statement dated 21 November, BC Game heavily disputed the ruling and said it would appeal the case.
“We strongly disagree with the court’s latest rulings and we 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,” BC Game said.
It said there had been inconsistencies throughout the case including in the witness statements.
“The allegations lack sufficient supporting evidence, with many claims based solely on unverified statements. Our internal investigations have revealed discrepancies in the cases cited by the plaintiffs, with most accusations lacking a clear legal or technical basis,” it said.
The operator assured its sponsorship partners it has no issues with liquidity and would remain fully committed to these deals.
BC Game was awarded one of Curaçao’s new look gambling licenses on 22 April 2024, under its new regulatory framework called the National Ordinance for Games of Chance (LOK).
