SunWest International, the operator of GrandWest Casino and Entertainment World in Cape Town, is embroiled in a legal dispute with three accused over payment of over R6.24 million in credits from a malfunctioning slot machine, following a settlement with a fourth claimant, Cape {town} Etc reports.
According to a case file, the three accused – Maganathan Padayachee, Sharnetha Harilall, and Sherilee Padayachee – allegedly withdrew R2.59 million in credits from their Sun MVG loyalty cards at GrandWest and Sibaya casinos.
This came to light in a judgement by the Western Cape High Court this week, following SunWest’s exception application to a counterclaim by the punters.
SunWest noted that the three accused are existing Sun International patrons and members of the MVG loyalty programme to which membership terms and conditions are ascribed.
The terms and conditions stated that members accept the possibility of errors or system malfunctions, and Sun International may adjust or revoke discounts, loyalty points, benefits, or tier credits.
In compliance with the WC Act, SunWest has placed disclaimer notices at locations such as the GrandWest entrance, casino cash desks, and slot machines.
‘…It is possible for electronic equipment and slot machines operated on these premises to malfunction,’ said SunWest.
‘The operator reserves the right to verify such equipment and machines prior to making payments or rewards in respect of winnings and/or prizes….’
‘Jackpots paid subject to all technical and electronic verification being positive. Malfunction voids all plays and pays.’
Between 26 and 29 January 2023, the accused allegedly exploited a malfunctioning slot machine at GrandWest to unlawfully accrue credits on their MVG cards.
The first accused, Maganathan Padayachee, recognised the malfunction on 26 January, fraudulently accumulating R1 075 772.90 in credits, withdrawing R24 000 in cash, and transferring R1 047 433.80 to Sibaya, where he withdrew R1 million.
On 27 January, Maganathan Padayachee again used the malfunctioning machine to accrue R2 484 634.97 in credits, withdrawing cash and transferring funds to Sibaya.
Sharnetha Harilall and Sherilee Padayachee are accused of using the same method to accrue credits on 27 and 28 January.
A counterclaim notes that in January 2023, the accused and SunWest are alleged to have entered into a tacit agreement at GrandWest.
The agreement included the accused participating in gambling, using loyalty cards, depositing money or using accumulated credits, and having the right to withdraw credits at their discretion.
SunWest filed an exception, arguing that the counterclaim was vague and lacked crucial details, such as the date and place of the agreement, the identity of SunWest’s representative, and the conduct relied upon to establish the tacit agreement.
SunWest contended that this lack of specificity made it difficult to respond to the claim properly, as required by court rules.
The purpose of an exception is to identify claims without legal merit.
In this case, the court emphasised that pleadings must be read as a whole to determine if they are vague and embarrassing.
The court says that the counterclaim lacks particularity, specifically regarding the date, location, and parties involved in the tacit agreement.
This vagueness could cause prejudice to SunWest, as the counterclaim fails to provide clear facts to support the alleged tacit agreement.
Although the court cannot assess the merits at this stage, it finds the accused counterclaim insufficiently detailed and likely to cause prejudice.
The court has granted the defendants leave to amend their counterclaim.