The recent bankruptcy declaration of BC.GAME, a Curacao-based gambling operator and Leicester City FC sponsor, has brought renewed scrutiny to Curacao’s controversial gaming licensing regime.
The case has unveiled what appear to be extensive wrongdoings, raising serious questions about the island’s ability – or willingness – to regulate its gambling industry effectively, as exposed by investigative website Josimarfootball.
BC.GAME, operated by Small Dance B.V., has been accused of running one of the largest illegal betting networks in continental Europe. The Curacao Gaming Control Board (GCB) is now poised to revoke the operator’s license following a bankruptcy order issued on November 12th, 2024. This legal action stems from a claimed $2 million debt owed to five gamblers, a financial obligation that Small Dance B.V. failed to honor and that BC.GAME is disputing.
The GCB’s move to revoke BC.GAME’s license appears logical given the operator’s bankruptcy, which casts doubt on its ability to meet its financial obligations to customers. Yet, this action is being called an anomaly by some due to Curacao’s otherwise light touch regulatory environment, where in the past four master licensees essentially played the role of regulator in everyday operations. Historically, gaming licenses, or sub-licenses, have rarely been revoked, even amidst mounting public complaints and international criticism.
For years, Curacao’s gaming industry has been characterized by minimal oversight and allegations of money laundering and criminal activity. These issues have tainted the jurisdiction’s reputation, both locally and in the Netherlands, to which Curacao remains linked as an autonomous territory.
A recent regulatory overhaul, known as the National Ordinance for Games of Chance (LOK), was intended to address these deficiencies and brought underway due to pressure from the Netherlands. However, early indications suggest that the new system is plagued by many of the same problems.
Curacao Finance Minister Javier Silvania has defended the LOK, claiming it would promote transparency and compliance with international standards. A delegation from Curacao also presented an update on the new licensing process and answered questions during a panel session at the recent SiGMA Malta event, giving the impression that meaningful change for the better was within reach. However, local politician Dr. Luigi Faneyte has filed a 392-page criminal complaint against Silvania, alleging corruption, fraud, embezzlement, and money laundering.
Dr. Faneyte’s complaint also implicates the GCB, alleging that the licensing process has been co-opted by foreign interests, including Maltese nationals such as Mario Galea and Mario Fiorini.
Fiorini, listed as a statutory director of Small Dance B.V., is accused of facilitating fraudulent practices. According to Dr. Faneyte, the GCB has been reduced to a mere facade, allowing foreign operators to dominate Curacao’s gaming industry without meaningful oversight, an allegation that undermines the official narrative coming out of the Caribbean island state.
The allegations leveled against BC.GAME paint a damning picture. The operator is accused of offering illegal gambling services across Europe through a sophisticated network of mirror sites and online guides. These platforms provide step-by-step instructions to circumvent local regulations, often targeting users in countries like Germany, Denmark, and Switzerland where a local license is required to operate legally.
Dr. Faneyte’s complaint highlights additional regulatory violations, including offering cryptocurrency trading services without the requisite financial licenses. The operator is also accused of failing to verify the identities of its players, enabling underage gambling and other illicit activities.
BC.GAME’s questionable practices extend beyond Europe. The company has been blacklisted in multiple jurisdictions, including the UK, Greece, Lithuania, and Bulgaria, for non-compliance with local laws. In July 2023, the British Gambling Commission flagged BC.GAME as an illegal operator, prompting Google to block its URL within the UK.
BC.GAME’s saga appears to underscore the systemic failures of Curacao’s regulatory framework. Despite numerous red flags, the island’s authorities allowed BC.GAME to operate unchecked for years. The operator’s ties to Curacao were further cemented when Small Dance B.V. took over the brand in April 2024, despite the bankruptcy of its predecessor, BlockDance B.V.
Critics argue that Curacao’s licensing system has long prioritized revenue generation over regulatory enforcement. Under the old regime, gaming licenses were granted with little scrutiny, enabling operators like BC.GAME to flourish. The introduction of the LOK was meant to address these shortcomings, but its implementation has been marred by allegations of corruption and mismanagement.
The BC.GAME case has far-reaching implications for Curacao’s gaming industry and its global reputation. The operator’s bankruptcy in the jurisdiction not only jeopardizes its ability to pay winnings but also exposes the broader risks associated with Curacao-licensed platforms. Customers and regulators worldwide are increasingly viewing Curacao as a hub for rogue operators, an image the island state tried to rid itself of, unsuccessfully as it now appears.
Curacao’s inaction has also drawn criticism from the Netherlands, which has expressed growing concern over the island’s role in facilitating illegal gambling. The Dutch government has called for stricter oversight and greater accountability, warning that Curacao’s lax approach could damage its international standing. Much of the pressure to change and clean up the gambling framework came from the Netherlands in the first place, and the continued dissatisfaction being voiced by The Hague doesn’t bode well.
It also casts doubts on the new framework which was due to be implemented in the not-so-distant future. Holders of the around 155 interim licenses that were given out as a stop gap measure by the regulator are now also left with continued legal uncertainty, as are thousands of other companies who held previous sub licenses or were looking at obtaining a Curacao license. The continued state of instability will benefit other jurisdictions such as Anjouan, Vanuatu, Kahnawake, or even the Isle of Man.
The case of BC.GAME exemplifies the deep-rooted problems in Curacao’s gaming industry. Despite promises of reform, the island continues to serve as a haven for questionable operators, undermining its claims of transparency and accountability. BC.GAME itself is unlikely to be insolvent as a brand and AGBrief previously posted exclusively that the operator is moving its license to Vanuatu, where the renewed gaming licensing framework has seen an influx of big names, many of which previously held Curacao licenses. How this latest chapter of grey market licensing will develop is something that will remain to be seen.
