Premier League side Leicester City could be about to lose out on £30 million after their front-of-shirt sponsor was declared bankrupt by authorities.
BC.Game, a crypto gambling operator licensed by the Government of Curacao, has reportedly failed to pay out on a series of big winning bets, with two punters – who won just over half-a-million and £1.08 million each – taking them to court.
As it stands, Blockdance BV and Small House BV – two subsidiary companies that have run the BC.Game platform – have shown no intention of paying out, citing irregularities in the prosecution case.
And it could all mean that Leicester City miss out on £30 million; much needed cash as they battle to stay in the Premier League.
A Losing Game
It was as recently as July that Leicester had penned their sponsorship deal with BC.Game, which is set to run until the start of the 2026/27 season – at which point, a voluntary ban on gambling firms sponsoring Premier League clubs will kick in.
And the ongoing issues with the offshore betting outfit could cost Leicester £30 million per season if a resolution can’t be found – not ideal for a club that has struggled to adhere to financial sustainability rules over the past few seasons.
Because BC.Game are licensed in Curacao, it was there that they made to face the legal action brought by the wronged punters. SBGOK, an organisation also known as the Foundation Representation of Victims of Online Gambling, had petitioned to have a bankruptcy order imposed upon the betting firm.
That, if accepted, would have enabled their clients to make a compensation claim against Blockdance, who owned and operated BC.Game up until the end of April, and current operator Small House.
According to the SBGOK, when BC.Game changed hands from Blockdance to Small House, some player funds had ‘disappeared’ while others still had outstanding withdrawal requests pending.
The bankruptcy petition was initially rejected, however a trip to the Court of Appeal was more fruitful, with the judge agreeing that BC.Game had ‘failed to meet their financial obligations’ in not paying out on the winning bets.
Referring to Blockdance, the Court of Appeal noted that the firm had ceased to operate and had an existing £4 million fine, issued by authorities in Spain, outstanding. They were also fined in the Netherlands for offering illegal gambling.
Moving on to Small House, the Court of Appeal adjudged that the players’ claims on their unpaid bets were valid, as they had occurred in the period after Small House had taken control of BC.Game.
To make matters worse, the appeal court also decided that Small House had failed to comply with the already-lenient licensing conditions in Curacao by not having an account with a ‘reputable’ banking institution.
And so the Court of Appeal had no choice really but to overturn the previous judgements, declaring both Blockdance and Small House – and thus BC.Game – bankrupt.
Nothing to See Here
But the plot could yet thicken.
A spokesperson for BC.Game has claimed that the company has no current financial issues, and that the court case was brought ‘erroneously’.
“Recently, BC.Game has been involved in legal actions initiated by some players,” their statement reads.
“The plaintiffs’ accusations include alleged platform misconduct and claims of user losses due to system issues or improper practices. However, BC.Game disputes these allegations, asserting that they lack substantive evidence and fail to demonstrate any violations by our platform.
“BC.Game has no issues with liquidity, financial standing or adhering to any of its existing contractual obligations. BC.Game is continuing its international operations as usual, maintaining business continuity and our commitment to users worldwide.”
The statement also reveals that the company ‘strongly disagrees’ with the court’s ruling, and that they too plan to appeal.
As for Leicester City, they have received ‘strong assurances’ that they will be paid in full (£31.6 million, to be exact), and there are currently no plans to remove the BC.Game logo from the front of their shirt.
A Club statement on https://t.co/P2as0jX8eI:
— Leicester City (@LCFC) November 21, 2024
In a statement, the Foxes commented:
“BC.Game have provided the club with the strongest assurances that they are actively appealing this case, and that the process which has been initiated in Curacao has not arisen due to any concerns with their financial standing.
“BC.Game have further assured us that they have no issues with liquidity and that they remain fully committed to meeting their ongoing contractual and financial obligations, including those to the club.”