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GOLDEN PALACE: FACED WITH PROBLEMS
by Michael Rosenblatt

One official at Golden Palace Online Casino said the attacks on the casino that are appearing on many Web sites all stem from two ex-players who were angry because their rights to bonus money had been cut off after they committed "bonus abuse."

An anonymous post on Casino Meister (http://www.casinomeister.com) makes the following unsubstantiated claim:

On top of having to be lucky at gambling, you also have to pass their audit. During one weekend, myself, as well as 37 other players, as I found out, didn't, so they took back the bonus, cashed-in the balance, locked me out, and for some strange reason I'm in a negative database now, so that most casinos from the Antigua region won't accept my credit cards any more. There is no reason for me to be in that database, I never disputed any charges. Also, I never was informed of it, nor does anybody admit having put me in the database. On the other hand, nobody seems to be capable of removing my name from there. Has anybody ever had an experience like that?

Golden Palace told me straight in my face (through the phone) that "they are in the business of making money", and that "I didn't lose enough", and that they rather close my account than pay me out. I guess they figured they wouldn't make as much money on me as they owed me, or in other words, you only get payed if you already spent more than what you won, or if it seems as though you will spend it again, soon. In any case, why be foolish and play at the Golden Palace, when there are so many other casinos around who pay you what they owe, without first auditing your play.

While the above person's claim can not be proven, after numerous Q&A with Golden Palace executives, as well as other online casino support representatives, we have discovered the following truth: Player abuse of sign-on bonuses is rampant.

What does this mean? How can someone take advantage of the Casino? It's quite easy: because most casinos insist that you first "drop" or put into play the amount of their Sign On Bonus before you can cash it out, players are signing on, putting even money on red and black in roulette, and spinning the wheel. Since they're more or less guaranteed a push, they've just qualified to withdraw the bonus.

Example: You receive a sign-on bonus of $30 at your favorite online casino.  You can't officially withdraw this money until you put at least $30 or more into "play" in the casino. You can go to their roulette table, place $15 on red and black, spin the wheel, and get your money back. You may then proceed to cash out.

Getting back to our original complaint, executives at Golden Palace publically responded:

We occasionally offer promotional weekends where all purchases made by our clients are given an extra 20% bonus to enhance their play. This is a gesture of goodwill on our behalf and according to feedback, is very popular with the players. Out of hundreds of players who take part, very few are audited. The audits only happen when players collect their bonus, play very few hands or none at all, and cash-in immediately. Therefore, collecting their initial purchase as well as the bonus. Please understand that the promotional bonus is given to enhance the play of our players, and as a means to try out new games.

So who is right and who is wrong? Ultimately, it comes down to the casino house rules. We interviewed several V.P.'s of land-based casinos who wished to remain anonymous, but were able to come to some conclusions: if the house has even the mildest proof that a player is attempting to cheat the casino, or take advantage of a promotional offer, that person will be barred from the casino at the very least, and barred in conjunction with police arrest at the very most.

Although it is not our attempt to judge the original poster's complaint above, we can make some generalizations:

1. If Golden Palace casino did determine that the player only dropped the bare minimum amount before trying to cash out with the sign-on bonus, and did it explicity with craps or roulette so as to not lose anything, the player is more than likely aware of what they are doing, hereby referred to as Rossenblatt's Theory of Sign On Bonuses: if they try it once, assume they're just unhappy with the casino. If they try it twice, with separate accounts, assume they're trying to scam you.

2. Negative database "additions" should only be processed when a player charges back casino losses on their credit card, and not for attempting Sign On Bonus Fraud. It is unlawful to tie the two no-no's together.

3. Negative databases are often only shared across casinos owned by the same group of people. Do your homework. Before you cry out to the world your credit is ruined, first determine if your credit is ruined only for a select group of casinos, or many of them. It can never be ruined for all of them.

Conclusions: The world is indeed filled with scam artists. Casinos must do their due diligence to determine who is really interested in playing at their site vs. who is interested in cheating them for several hundred dollars and moving on. Because the only real way to determine a Sign On Bonus Fraud is to analyze the players drop, casinos must not let roulette or craps count toward active play, which should force the player to spend the bonus money on real gambling, and not real trickery.

Golden Palace has adopted the rule of NO ROULETTE NO CRAPS for Sign On Bonus drop. This is surely the first of what will be a decade full of great compromises as the online gaming industry reacts to issues the land casinos never dreamed possible.

(Written by Michael Rosenblatt)


 

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