If you're tuned into the iGaming world, you've likely caught wind of the recent controversy involving Sherbet Casino, one of the newest crypto casinos, and a high-stakes player. This dispute went viral, especially with $125k on the line. Intrigued? Let's walk through the situation.
The Dream Win That Turned Into a Nightmare
Our story kicks off with a player who, after losing $45k in 2023 left Sherbet but was quickly lured back by Casino's VIP team who contacted him about a remaining $500 balance. Despite initially declining due to prior losses, he eventually returned as Sherbet offered tempting conditions due to him being a high-roller, VIP player.
From the screenshots provided by the player, it is very obvious that he made it clear that he will come back when he feels ready as currently, he is not able to, due to the monetary losses. However, Sherbet remained persistent and eventually lured the player back in. Casino's pursuit of the player despite his initial losses was a failure in responsible gambling practices that can hardly be justified.
However, the story gets more complicated as the player's comeback makes him lose $6k initially, but Sherbet, determined to keep him active, offers him loss reimbursements and other perks that he admits got him "hooked." Soon after, he made a $10k deposit and swiftly climbed to a $50k balance. Keen to withdraw the amount he ran into the first problem which was a withdrawal limit. The casino had a 10k withdrawal limit per 24h which would make the withdrawal of $50k slower than expected. That's when the player decided to contact Sherbet to raise the withdrawal limit, they informed him that they will need to check what can be done. However, in the meantime, he racked up his winnings up to $125k and Sherbet had kicked back with a KYC request. This move sparked criticism, as it appeared that the KYC was only required after he began winning, potentially delaying his withdrawal on purpose and hoping that a player gambles it through - often a casino tactic.
At this point, it is very much visible from the screenshots that Sherbet is no longer invested in communication with the player like before.
Shortly after, the player's account was blocked with Sherbet citing a location issue---Malta. According to Curacao licensing terms, Sherbet doesn't accept players from Malta, but it raises questions on why he was not geo-blocked from the start? A geo-block would have prevented the player from even registering, especially if the casino is strict about its eligibility criteria. When we also consider that the player was reactivated at the casino's initiative, the justifications in the casino's favor begin to lose credibility.
Sherbet's Response: Refunds, Terms, and Legal Loopholes
Nonetheless, Sherbet responded by pointing to their terms, claiming they were clear. However, their terms only vaguely mention Malta under the phrase "any other location where the use of the service is prohibited," which, while safeguarding the casino, leaves users with questions.
To make matters more complex, Sherbet stated the decision was based on their Curacao license, but they were actually transitioning to an Anjouan license, with their Curacao license already expired. This raised doubts about the applicability of the terms while the casino was operating without an active license.
With that said, as you would expect, Sherbet attempted damage control. They refunded $42k of the player's recent deposits---a move likely to mitigate complaints reaching larger arbitration platforms. While this is considered an act of good faith, it highlights Sherbet's missteps in responsible gambling practices.
Additionally, Sherbet updated their terms and conditions, making it challenging to confirm the exact wording prior to the revisions. These changes, however, were implemented to address potential future issues.
At the end of the day, while Sherbet's approach wasn't flawless and there were missteps along the way, they did the right thing by refunding the player's deposits. This proactive move may help soften their reputation.
However, it's important to remember that, according to most casino's terms, players are ultimately responsible for ensuring they comply with the rules and regulations in their jurisdiction. Even with the casino's being at fault, players hold the primary responsibility. That is unfortunately the harsh reality.
The Endgame: A New Ownership, A New Beginning?
In a final twist, the CEO of Shuffle Casino has spoken out and announced their plans to acquire Sherbet, marking an end to Sherbet's operations. Although Sherbet was once a key competitor, Shuffle's goal is to make this transition smooth for Sherbet's users, guaranteeing that all player balances are secure.
Nonetheless, this saga serves as a reminder to always check terms, especially around the casino's eligibility criteria and location restrictions.
This situation also underscores the need to be cautious about VIP offers, which can sometimes push the limits of responsible gaming.