Months of customer complaints have led to software supplier Microgaming Systems cutting nearly all its ties with its licensee, Tropika.
The Online Players Association (OPA), a consumer watchdog group, issued a statement via its website on Thursday "strongly advising" its players to avoid a list of casinos operated by the Toronto-based company because there was "a considerable list of unpaid players dating back to December and it is clear that there are insufficient funds to pay them."
Hours after the statement was posted, along with a letter from an OPA attorney sent to Tropika, Microgaming issued a statement of its own to allegedly defrauded players letting them know they had an option to recoup their money.
The statement also said the licensing agreement between Microgaming and Tropika had been terminated and that ties were severed between Microgaming and all of Tropika's online casinos except for Golden Riviera casino.
"Microgaming is aware that for some time there have been player allegations that payouts to players have not been made by Tropika casinos," the Microgaming release said. "In the interests of fairness, arrangements have been made for players that have still not had their claims paid by Tropika, or the relevant Tropika casino."
The statement went on to inform players with unpaid claims that they should take their issue up with
PriceWaterhouseCoopers, which reviews payouts at Microgaming-licensed sites, and explained the process players need to take.
"PWC will receive players' complaints with a view to verifying the correctness thereof, and advising of any amounts that should be paid," the company stated. "This process is entirely under the control of PWC, and Microgaming will not be involved in any way. The funds to be used for such payouts have been placed by Microgaming in a trust and are not under the control or ownership of Microgaming. PWC will advise the trustees of any amounts that should be paid."
According to the letter sent to Tropika, the company failed to pay winnings to OPA members of more than $40,000.
Don Powers, the OPA attorney who wrote the letter to Tropika, said the unwillingness to pay winners their due amount was ethically wrong and illegal.
"Your refusal to honor your obligation pursuant to your trade raises your conduct to that of an unconscionable trade practice at a minimum and outright fraud at the other end of the spectrum," Powers wrote.
Powers said that if Tropika doesn't have the capital to pay the players, the OPA will target other assets the company has.
"We are presently interviewing Canadian counsel to assist in the collection of these wrongfully withheld monies," the letter said. "I would implore you to do the ethical and commercially rational act of effecting the payment of the winnings immediately before corporate assets are imperiled and shareholder confidant (sic) further deteriorates."
The letter also warns that if the issue is forced into the courtroom, it will wind up costing Tropika more money in the end.
"Be advised that once suit (sic) is initiated the costs of litigation will increase damages exponentially because of the international complexity of this case," it read. "Those damages are recoverable should judgment be obtained in either jurisdiction."
On the top of the list for both the OPA and Microgaming was Fairplay Casino. The OPA also warned its players about a host of other Tropika operations, including Jetset, Bulls 'n Bears, Orient Express, Bingotops, Iceberg, Astrobet, Atlantis, Star, Aztec Gold, Flying Dragons, Old Glory and Magic Carpet.
According to the post on the OPA site, the group had been in negotiations with Tropika's chairman John Ashbee for months but was unable to reach a compromise. According to the OPA there were outstanding player payments dating back to December of 2000.
"This company has still not met its obligations despite several deadlines and extraordinary patience on the part of the players involved," the post read.
According to the post, the OPA went public with its displeasure with Tropika after the operator continued taking bets despite the fact that several players hadn't received their winnings.
"It is clear that Tropika is either unable or unwilling to honor its obligations, and the OPA has therefore no option but to proceed with a consumer action and complaints to various official bodies with influence over this company," the post read.
That was where Microgaming came in. The OPA often targets the software suppliers of casinos that have failed to pay winnings or when online operators close up shop.
Microgaming agreed to work with the OPA in resolving the issue.
The company is willing to settle claims, but wants the issue resolved as soon as possible.
"All players who believe that they have a valid claim should approach PWC from the 6th of July 2001 at the e-mail address given below (trustadmin@pwcgaming.co.za)," Microgaming said in its statement. "Players should note that a time limit has been placed on the lodgment of such claims, and all claims should be lodged by the 6th of August 2001."
An official with Tropika told IGN that the company will issue a statement regarding the situation within the next few days.
Microgaming's Announcement in Its Entirety:
Microgaming announces that the licence for the operation of the group of casinos owned by Tropika, and notably Fairplay Casino, has been terminated with immediate effect. This termination does not affect Golden Riveira casino. Microgaming is aware that for some time there have been player allegations that pay outs to players have not been made by Tropika casinos.
In the interests of fairness, arrangements have been made for players that have still not had their claims paid by Tropika, or the relevant Tropika casino, by the 5th of July 2001, to put their claims to PricewaterhouseCoopers Inc. (Johannesburg) (PwC). PwC will receive player's complaints with a view to verifying the correctness thereof, and advising of any amounts that should be paid. This process is entirely under the control of PwC, and Microgaming will not be involved in any way. The funds to be used for such payouts have been placed by Microgaming in a trust and are not under the control or ownership of Microgaming. PwC will advise the trustees of any amounts that should be paid.
All players who believe that they have a valid claim should approach PwC from the 6th of July 2001 at the e-mail address given below. Players should note that a time limit has been placed on the lodgement of such claims, and all claims should be lodged by the 6th of August 2001.
Claims must be addressed to: trustadmin@pwcgaming.co.za. These claims should clearly state the claimant’s full name and login-id as registered at the casinos involved.