Trusted online casino operator MagicRed Inc. (NASDAQ: CSNRM) has made a costly mistake after launching their online casino in South Africa that caused the company to lose hundreds of thousands of euros to its players.
This glitch has already lost them close to 4 Million South African Rands (about $300,000 USD) in free spins and cash prizes and the loss is going to continue to increase until when their new customer agreement takes effect.
What Exactly Happened?
Michael McGee, an experienced casino player from Pretoria who was one of the first players to discover the loophole explains, “MagicRed new promotional campaign for new customers in South Africa was supposed to give up to 3,150 ZAR (about $270 USD) of additional free credits to all new customers that deposited at least 60 ZAR to their account. Unfortunately for them, they had a wording error in the agreement so each new customer can get up to 12,000 ZAR of free credits based on the amount of their first deposit.
As a result, people are using the free credit and hitting jackpots that are costing MagicRed South Africa heavily. What is making matters even worse for the company is that there is no way for them to fix it due to the strict gambling laws in South Africa which require casino companies to notify at least 7 days in advance before changing their terms and conditions. So getting these bonuses for free is completely legal.”
Thousands of Winners
One company’s mistake can be incredibly profitable for everyone else. One lucky woman, 26-year-old Karen Hammond from Durban, registered with MagicRed South Africa and claimed the free credit and after using just 175 ZAR for spins she won the progressive jackpot of 1 Million South African rand (about $77,000 USD). “I used to dread waking up each morning and going to a job that I hate, all to just be able to cover my rent and bills, now I have so much freedom.”
MagicRed’s CEO in South Africa, Stuart Rogers was fired immediately after the incident and the new manager Phillip Halstead has a lot of fixing to do. Halstead responded to our inquiry via email, “This has been a very unfortunate and costly mistake for the company but we have to learn from it and move on. The South African market is very important to us and we are here to stay even after this costly error for the company.”
Here is how South African people are claiming their free money:
1. They sign up on the MagicRed South Africa page
2. They will make a small deposit of at least 60 ZAR and then use the free credits they receive to win money without a risk of losing and completely legally