The recent bankruptcy ruling against BC.GAME, a Curacao-based gambling operator and sponsor of Leicester City FC, has brought renewed focus to the Caribbean island’s troubled gaming licensing system. This high-profile case exposes significant regulatory gaps and highlights the ongoing challenges in ensuring transparency and accountability within the global gambling industry.
Collapse of a gambling giant
BC.GAME, operated by Small Dance B.V., has long been a prominent name in online gambling. However, its alleged involvement in illegal betting networks across Europe has tarnished its reputation, culminating in a bankruptcy declaration on 12 November 2024. The bankruptcy stems from a $2 million debt owed to five gamblers, a claim Small Dance B.V. has disputed but failed to resolve. The operator’s financial troubles have sparked broader questions about its business practices and compliance with legal standards.
Investigative findings
Investigative website Josimarfootball revealed that BC.GAME ran a vast illegal betting network using mirror sites. These platforms circumvented local regulations, targeting users in countries like Germany and Denmark. Beyond gambling, BC.GAME offered cryptocurrency trading without obtaining the necessary financial licences. This practice exposed users to significant risks. The operator’s failure to verify player identities facilitated underage gambling and other illegal activities, highlighting systemic flaws in oversight.
BC.GAME has faced regulatory action in multiple jurisdictions, including the UK, Greece, and Bulgaria, where it was blacklisted for non-compliance with local laws. The British Gambling Commission flagged BC.GAME as an illegal operator in 2023, leading to Google blocking its URL within the UK—a major blow to its operations.
BC.GAME issue official statement
BC.GAME have since issued an official statement in reply to the accusations, in which they raise issues with the evidence presented by the plaintiffs, suggesting that there was a lack of evidence to support the claims made. The statement also raises concerns about the lawyer representing the plaintiffs. The statement reads: “We suspect potential collaboration between this lawyer and certain groups or individuals, raising concerns that this may be a malicious lawsuit orchestrated by external forces aiming to exploit the legal system for unjust gain. Particularly concerning are this lawyer’s past attempts to exert undue pressure on us to force a settlement, a tactic that has attracted the attention of our legal team.”
New licensing framework
National Ordinance for Games of Chance (LOK) aims to improve transparency and align Curacao’s gaming industry with international standards. Despite its promises, the LOK framework has been criticised for perpetuating many of the old regime’s issues, including allegations of corruption and inefficiency.
According to the Curacao Chronicle, local financial and political analyst Dr. Luigi Faneyte has filed a criminal complaint against Finance Minister Javier Silvania and others, alleging corruption, fraud, and embezzlement in the licensing process. Faneyte alleges that foreign interests have co-opted Curacao’s gaming industry, further undermining the credibility of its regulatory framework.
With Curacao’s regulatory framework in flux, many operators are relocating to jurisdictions with more robust oversight, such as Vanuatu and Kahnawake. Curacao could learn from these jurisdictions by prioritising enforcement and addressing corruption to rebuild trust in its gaming industry.
Subscribe here to SiGMA’s Top 10 News countdown and SiGMA’s Weekly Newsletter to stay up to date with all the latest iGaming News, and benefit from Subscriber-Only Offers.
