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SUNNY GROUP VS MICROGAMING - THE REAL STORY?

by AmateurSleuth
August 7, 2002


Time has passed since Sunny Group of Casinos and Microgaming Software have severed their business relationship.

In that time, several reports have been made about the circumstances that caused this to happen.  Below are excerts from articles, and links to the complete articles, that relate the story from both points of view.

Note that some of these references are from Press Releases from the affected companies.

FROM PRWEB
http://www.prweb.com/releases/2002/3/prweb35964.php

SUNNY CASINOS PRESS RELEASE

"...An International auditing company is employed by Microgaming and Casino Fortune to review the output of the random number generator embedded in the Microgaming software used by Casino Fortune.  The auditing company confirms that the generator consistently produces random numbers and is a fair basis for the outcome of games that have been played.  Presently, Casino Fortune is not convinced that this is accurate.

The January 2002 audit report was released late February.  At that time December’s report had also not been sent.  Casino Fortune repeatedly asked for the figures, which are usually published to its customers...

...On 20th February Casino Fortune’s IT Director wrote again "We are very concerned about our payout percentages.  We also have not received our audit reports for the last 2 months.  I was forced to review the previous problem we had sometime ago regarding payout percentages as shown in
emails below….”

The IT Director made reference to a November 2000 settlement Microgaming made with several licensees after it was suspected that they (Microgaming) had tampered with the random numbers generator causing losses.  The Director copied letters from other operators who claimed that the settlement represented only one fifth of what was actually lost...

On March 17th, credits for guest customer accounts were tampered with. Upon investigation, it was proven that this was not caused by any employee of Casino Fortune.  Microgaming was promptly contacted and they denied any allegation that their staff had anything to do with the interferences. Casino Fortune attempted to no avail, to speak directly to the Microgaming principle, Martin Moshal.  Mr. Moshal did not respond to emails and his cellnumber was no longer active. "
These are serious allegations from Sunny Casinos regarding whether Microgaming actually paid a settlement to a complainant, in essence admiting some wrongdoing.

In fact, the registered owner of the domain name "Microgaming.com" is now listed as "David Black".  Attempts to contact Mr. Black have been unsuccessful.

Microgaming issued the following Press Release on March 27, 2002:
 http://www.casinomeister.com/news/march2002.html#microgamingpr

MICROGAMING PRESS RELEASE

"MICROGAMING REGRETS TO ANNOUNCE THAT THE SOFTWARE LICENCE AGREEMENT WITH THE SUNNY GROUP OF COMPANIES (WHICH OPERATES CASINO FORTUNE, MAPAU AND MIAMI BEACH CASINO) HAS BEEN TERMINATED.

Sunny Group has not been settling its outstanding licensing fees for some time, and its current licensing fees were severely in arrears.  Microgaming was left with no alternative but to terminate the Software Licence Agreement with the Sunny Group.  Notice of the termination was given and confirmed by Microgaming's lawyers.

Microgaming and the Sunny Group have had a long relationship.  The termination was not taken lightly and was done with a heavy heart.

Microgaming is doing everything possible to assist the Sunny Group of casinos to finalise its data so that it can pay out its players.

Microgaming has noted a press announcement from Sunny Group, stating that the licence was terminated by the Sunny Group, and citing a variety of spurious grounds for this.  The allegations made in support of these grounds in the release, are quite simply false, and are known to the Sunny Group to be false.  Microgaming regrets that the Sunny Group has sought to hide its financial embarrassment in this manner."
Reports of malicious conduct against Casino Fortune, were also alleged by Sunny Casinos in a subsequent Press Release dated May 8, 2002.

FROM CASINO TIMES NEWS:
http://www.casinotimesnews.com/APR2002/press_release_sunnygroup_2.htm

SUNNY GROUP PRESS RELEASE

"...On April 6th an anonymous mailer sent a Trojan Virus in a promotional offer seemingly from Casino Fortune to some Casino Fortune customers who had signed an online petition against Microgaming.  This resulted in a crash on their hard drives.  I guess this is a strategy to make people fearful of playing with us.  The few players that reported this incident were given new hard drives to accommodate their misfortune, said Anand Rajkumar, Promotions Director.

On April 7th, Jackpot.com/Vendare Group began spamming subscribers with promotional email sent as coming from Casino Fortune.  Further down the page the name Atlantic Casino Fortune is given.  The registered address of Atlantic Casino Fortune is an Isle of Man address used by Microgaming...
In the same Press Release, Casino Fortune claims to have received the following email:

"On May 5th, 2002 Casino Fortune received the following email, which was traced to a Johannesburg address:

Random number generators work in the following fashion:

1.  Take a range of fractions (usually between 0 -1) and run the random function on the range.

2.  Then apply this fraction to the actual range of numbers that you are interested in (e.g. in a card game with 4 decks the probability of choosing an arbitrary each card decreases by a factor of 4)

3.  What you can do to influence the outcome is to weight the outcome based upon some other event by applying a variable to the function you create that generates the outcome.

If you want it to be truly random you can weight the values based upon some value, which is infinitesimal such as the current server time down to microseconds.

By the same token you can also pass a blank variable, which will register as a NULL value, and then at any point in time to weight the outcome values upwards or downwards, you can then pass a non-null variable and this will then skew the outcome of the randomness.

Basically this is how the Random Number Generator (RNG) works:

1. Client software connects to the port on the Gaming server.

2. Client software requests a game that player wants.

3. Player requests to be dealt or to spin Client software connects to gaming server and asks for a random number to be generated on a specific port.

4. Based upon the weighting of the RNG the result will come back as within probability or skewed.

5. On the MGS Gaming server the following parameters are passed to the RNG:  game, game type, time (hh:mm:ss:ss.sss) and client parameters request # etc. The MGS Gaming server RNG service can be weighted according to a variable that is usually left blank.

6. Request result is then recorded and sent back to the client."
At this time, it is not known which casino Microgaming is alleged to have paid a financial settlement.  However, this information would, if true, validate Sunny Group's concerns about the validity of Microgaming's Random Number Generator.

It should also be noted that PriceWaterhouseCoopers(PWC) only validates information provided by Mircogaming itself, and does not have access to the Random Number Generator itself.  Consequently, PWC is confirming the Payout Ratio based only on Microgaming's own reports.

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