On December 7, 2023, I have sent the below email to the Curacao Gaming Control Board
I contact you because you are tasked with the supervision of the online gaming sector.
I ask you to intervene against the criminal crypto currency online casino operation stake.com which publicly claims to be operated by Medium Rare N.V.
Their in-house Black Jack system is provably rigged and I unjustifiably lost BTC worth around 30,000 USD (more info and proof see below).
They also do not fulfill Article 16 of the 8048/JAZ license:
Quote: "1. The license holder keeps a daily overview of the games of chance played, the number of times each game has been played, the bets made and the prize money achieved.
2. The data referred to in the first paragraph will be stored in a proper manner during the period that company data must be stored pursuant to the National Ordinance on Profit Tax 1940 (P.B. 1965, no. 58)."
I asked
complaints@stake.com to send me my daily overview of the number of Black Jack hands I played, the bets made and the prize money achieved, but they did not send it.
Below is proof that the Stake in-house Black Jack system is rigged!
Info 1)If you take a look at my statistics here
https://ibb.co/Hxf8NpR you can see the following total numbers:
Bets: 180,904
Wins: 78,285
Losses: 86,612
If we reduce the number of wins from the number of losses, we can see that I lost 8,327 bets (86,612 minus 78,285 = 8,327)
Losing 8,327 bets out of 180,904 bets placed = 4,6% of the bets lost.
Info 2)The advertised house edge for the Stake in-house Black Jack is 0,5%, which means longterm I will lose 0,5% of all bets placed.
Losing 0,5% out of 180,904 bets placed = 900 bets lost.
If you compare Info 1) with Info 2), you can see that I lost 8,327 bets instead of the 900 bets I should lose = 9 times more!
While there is a deviation from the expected outcome, it can not be 9 times more after 180,904 bets!
Info 3)When the house edge is 0,5% and you placed 180,900 bets, you will lose 900 bets and the remaining 180,000 bets are coin flips.
The remaining 180,000 bets are coin flips, because they are neutral and you will win 50% = 90,000 bets and lose 50% = 90,000 bets.
4,6% of the bets lost while I should lose only 0,5% means my experienced deviation of the 180,000 coin flips is 4,1%!
Now let's take a look at the standard deviation for 180,000 coin flips:
A) Standard deviation for 180,000 coin flips = 212 coin flips = 0,12% (In 68% of all attempts, the deviation is up to 0,12%)
My experienced deviation of 4,1% is 34 times higher than the standard deviation (4,1% : 0,12% = 34)
B) 3 times standard deviation for 180,000 coin flips = 0,36% (In 99,7% of all attempts, the deviation is up to 0.36%)
My experienced deviation of 4,1% is 11 times higher than the 3 times standard deviation (4,1% : 0,36% = 11)
Info 4)The Stake bet transaction history only states 180,000 single bet events and no overview of my experienced house edge.
To get my experienced house edge from the bet transaction history, I would need to take a look at all 180,000 bets and calculate it manually!
If the cards were dealt fair and I lost only 0,5% of all bets placed while the statistics states that I lost 4,6%, then the Stake statistics is rigged!
In either case, the Stake in-house Black Jack system is provably rigged and Stake has to compensate at least the 30,000 USD I lost from my pocket.
Awaiting your reply
Dear Sir / Madam,
Thank you for your email.
Unfortunately, the Curaçao Gaming Control Board (GCB) is currently not able to handle your request.
The government of Curaçao is actively in the process of modernizing our gambling legislation and setting up our online gaming policies and procedures. We expect to be of more help as soon as the new legislation enters into force, which we expect to be the case in the second half of 2024.
We kindly point out in advance that the GCB will not investigate all complaints. For example, the GCB does not have the authority to adjudicate disputes between the complainant and the accused party and to settle claims or award damages. Only if a complaint indicates a violation of the applicable regulations, the supervisory task of the GCB entails that this will be investigated further.
For the time being, we kindly suggest, that at all times you seek legal advice for any claims you may have vis-à-vis the license holder or other party or parties. We refer to the following page that contains a list of law firms established in Curacao that may be able to assist you:
http://www.dutchcaribbeanlegalportal.com/legal-contacts/law-firms?sid=102:Law-Firms-Curacao.
Sincerely,
Curaçao Gaming Control Board
Their website states that since March 2020, they have been tasked with the licensing for and supervision of the online gaming sector on behalf of the Minister of Finance.
But even though they are tasked with the supervision of the online gaming sector in Curacao, they do not enforce it, because otherwise Medium Rare N.V. would not be able to run a provably rigged in-house Black Jack system!
"Only if a complaint indicates a violation of the applicable regulations, the supervisory task of the GCB entails that this will be investigated further."
And as a provably rigged in-house Black Jack system is a violation of the applicable regulations, they have to investigate this further.