On October 4, 2024 the Court of First Instance rejected the bankruptcy petition of Stichting Belangenbehartiging Gedupeerden Online Kansspelen (SBGOK) and a number of affected players against both Blockdance and Small House. However, both judgments were annulled by the Court of Appeal on November 12, 2024.

 

SBGOK and players argued that both companies ignored and failed paying the claims of the players involved. Blockdance and Small House argued during the hearing at the end of October that there was a clear division in their responsibilities. Blockdance would have operated BC.Game until April 30, 2024, after which the operation of the gambling site was fully transferred to Small House. The latter stated that they had taken over the website and software, but that existing players – even if they continued to play on the site after April 30, 2024 – would not fall under the responsibility of Small House.

 

SBGOK and the players stated that, despite said formal separation, both companies had the same stakeholders – in other words: there was abuse of identity differences by the same owners to circumvent player claims and government sanctions and that both entities are liable for the claims and a 2022 Spanish sanction.

 

During the hearing in the appeal, it was established that Blockdance is no longer active and very recently stricken off from the trade registry of the Chamber of Commerce. The foundation and the players pointed out that the claims nevertheless were still open and that both companies are responsible for the claims.

 

The players claim USD 1,482,162, USD 500.000, USD 10.948 and USD 680,000 in confiscated balances respectively. A Spanish government fine of EUR 5.000.000 dated March 30, 2022 to Blockdance was left unpaid as well. All claims remained left unanswered until the bankruptcy request was filed.

 

The Court of Appeal found that both companies were in a situation where they had ceased to meet their payment obligations.

 

For Blockdance, it was important to the judges that it had not only ceased its activities just before the bankruptcy hearing, but that it was also fined 5 million euros by the Spanish Dirección General de Ordenación del Juego (DGOJ) authorities, which was left paid. Although Blockdance denied that it received a Spanish penalty, this looked like a similar response Blockdance gave after the operator of Bc.Game was fined with a recent Kansspelautoriteit (KSA) penalty for illegally offering online gambling in the Netherlands as well.

 

With regard to Small House, the judges of the Court ruled that the players’ claims, despite all denials, continue to exist as obligations. Furthermore, it appeared that Small House did not comply with the Curaçao licensing conditions, including the obligation to work with a local or international reputable bank account to maintain sufficient funds to honor winnings, so players can rest assured that their winnings would always be honored.

 

SBGOK successfully demonstrated that the player and sanction funds were lost between 30 April and 10 August 2024, while Small House was already listed as the official operator on the gambling site BC.Game at that time.

 

Blockdance was licensed by Curacao Interactive Licenses (C.I.L.) # 5536/JAZ while Small House was February 22, 2024 licensed by the Curacao Gaming Control Board # OGL/2023/118/0060 .

 

SBGOK and players were represented by LMS lawfirm and mr. R.E.F.A. Bijkerk, while mr. D.D. Zahavi of ZL Attorneys at Law represented Blockdance and Small House. The lawfirm of mr. Barbara Nagelmakers was appointed as bankruptcy trustee/curator. Although bankrupt, the Curacao Gaming Control Board avoids revoking their license for casino, citing Small House/Blockdance only did not pay the players due to a administrative dispute.

 

 

The role of the (lack of) supervision of the many thousands of Curaçao online casinos is currently being discussed in the House of Representatives (‘Tweede Kamer’) of the Netherlands.