WILLEMSTAD - On October 4, 2024, the Court of First Instance in Curaçao rejected bankruptcy petitions filed by the SBGOK against Blockdance and Small House. However, SBGOK appealed, arguing that the gambling companies were unable to meet their financial obligations to players. On October 31, 2024, both cases were jointly reviewed by the Court of Appeal in Curaçao. 

During the hearing, Blockdance and Small House presented separate defenses, asserting a clear division of responsibilities between the two entities. Blockdance claimed it had operated the BC.Game platform until April 30, 2024, at which point control of the site was fully transferred to Small House. Small House, in turn, confirmed the takeover of the website and software but denied assuming any financial liabilities towards existing players. 

SBGOK, however, contended that despite the formal separation, both companies shared common stakeholders and that player funds had largely disappeared following the transition to Small House. According to SBGOK, players still had outstanding claims, and Small House was ultimately responsible for the funds in question. 

Two players filed claims for significant losses: one seeking $1,482,162.10 (€1,394,585.34) and the other $680,000 (€639,820.72), both amounts allegedly lost after Small House took over operations. Additionally, a claim of $10,948.50 (€10,301.81) remained unsettled, which Blockdance claimed had been resolved through a credit to the player's account. SBGOK disputed this, arguing that the payments had not been properly processed. 

Failure to Meet Payment Obligations 

The Court ruled that both Blockdance and Small House had failed to meet their financial obligations. In Blockdance's case, the Court noted that not only had the company ceased operations, but it had also been fined €5 million by Spanish authorities, a fine that remained unpaid. Blockdance denied receiving such a penalty, echoing a similar response when the operator of BC.Game was fined in the Netherlands for illegally offering online gambling. 

As for Small House, the Court determined that the players' claims remained valid, despite the company's denial. SBGOK presented evidence that player funds were lost between April 30 and August 10, 2024, a period during which Small House had already been listed as the official operator of BC.Game. The Court further found that Small House had failed to comply with Curaçao's licensing requirements, including the obligation to operate with a local or reputable bank account. 

In a significant ruling, the Court of Curaçao overturned the previous judgments and declared Blockdance and Small House bankrupt. This decision opens the door for affected players to potentially receive compensation through the bankruptcy proceedings.