Cryptocasino BC.Game announced it had voluntarily surrendered its Curaçao license, preempting a decision by the country’s regulator on whether to revoke it. According to its website, it is now regulated by the Government of the Autonomous Island of Anjouan.
The operator cited a “lack of legal protection” for license holders in Curaçao as its primary reason.
The announcement came on December 5, a day before the Curaçao Gaming Control Board was to decide whether to revoke the license. About a week before, the regulator indicated its intention to withdraw the license. It cited unaddressed concerns regarding whether BC.Game is following regulations.
BC.Game assured its international customers that the move won’t impact its operations, as it holds licenses in other jurisdictions. However, the move comes in response to questioning by the regulator on the financial stability of BC.Game’s parent company, Small House BV, which Curaçao courts had previously declared bankrupt.
Anjouan is an autonomous island within the Comoro Islands, just off the eastern coast of mainland Africa and part of the Union of Cormoros. Curaçao was once known as a “rubber stamp” jurisdiction, imposing few restrictions or oversight on its licensees. However, it has begun efforts to rehabilitate its international image, driving some operators to seek licenses from more hands-off regulatory jurisdictions like Anjouan.
BC.Game Calls Curaçao a “Hostile Environment”
In a press release, BC.Game says withdrawing its license results from the increasingly “hostile environment” towards license holders in Curaçao. While it acknowledged Curaçao’s steps towards reforming its gambling industry, the operator says there’s a lack of legal protection for operators:
Despite ongoing efforts to modernize Curaçao’s iGaming law, proper legal protection for all operators established in Curaçao is severely lacking, such as its bankruptcy law which dates to 1931 via the “Curaçao Bankruptcy Decree” which can easily be exploited by malicious actors and used against legitimate operators.
BC.Game once again dismissed rumors and emphasized that its financial health is good. It also reaffirmed its commitment to safety, security, and reliability in its services, as well as meeting all legal and financial obligations. However, in the past week, the operator decided to shut down its UK business, which operated through a TGP Europe licensing agreement.
Anjouan Could Replace Curaçao for Many Offshore Operators
In recent years, Anjouan has attracted many offshore operators. The primary appeal is that the financial and logistical requirements for setting up a license are minimal. The initial and annual license fees start at €17,000 ($18,000), with no taxation on gross gaming revenue. Also, the licensing process in Anjouan often takes less than four weeks. That’s much faster than many other popular jurisdictions, such as Curaçao, Isle of Man, and Malta. Furthermore, companies can do everything remotely and don’t need servers or staff on the island.
The Anjouan license does restrict holders from operating in excluded territories. They include Australia, Austria, the Comoros Islands, France, Germany, Netherlands, Spain, the UK, and the US. To test it out, I logged into the BC.Game website. Immediately, I received a message stating that the casino does not accept US players. After I closed the message, I could browse the site, but when I attempted to register, it told me that services were unavailable in my area.
The island gambling regulator is The Gaming Control Anjouan, while the Anjouan Offshore Financial Authority is the financial regulator. According to their websites, license holders are regularly inspected to ensure they follow regulations. Operators also must frequently test and certify their systems. The regulators also monitor operators for financial stability and user complaints and disputes. Opinions online vary on the strictness of Anjouan’s regulatory approach. Some companies promoting licensing services describe it as relaxed, while others sell it as a tightly regulated jurisdiction.
As Curaçao is working on reforming its gambling industry, many operators are likely to follow BC.Game to Anjouan. Numerous publications compare the two countries’ license structures, supporting the idea that the African island could become an even more popular offshore licensing option in the near future.
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