'CyberSol' in multi-million dollar dispute

Published Apr 6, 2002

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A University of Cape Town finance and computer science graduate, who started an Internet gambling business six years ago, has become a rand billionaire through the lucrative cyberspace gaming business.

But Martin Moshal, dubbed "CyberSol" after Sol Kerzner, has become embroiled in an international multi-million dollar gambling drama.

Moshal's South African team of cyberspace whizzkids is involved in some of the work that reputedly earned $720-million (more than R8-billion) last year.

Moshal, a UCT finance and IT graduate, started the internet gambling business that has taken the world by storm in 1996.

But now the 32-year-old "CyberSol" is involved in a nasty spat with an ex-client that threatens to run into millions of dollars.

The Sunny Group, with headquarters in the Caribbean, until a fortnight ago operated lucrative internet casinos using software designed by Moshal's Microgaming Systems.

Some of the software is developed by Derivco (Pty) Ltd, a Durban company started by a media-shy Moshal and regarded by the industry as one of the best gambling software producers in the world.

Its software allows cyberspace casino operators to run real-time games like blackjack, roulette and slots from their sites.

Players across the world are able to gamble by accessing these sites via the Internet on their personal computers, and paying with their credit cards. Winnings are paid by cheque or via Western Union bank drafts.

To use Moshal's Microgaming's software to power sites like www.casinofortune.com, the Sunny Group said it had to pay a licence and a portion of profits.

Two weeks ago the Caribbean Sunny Group sent a representative to the Mohawk Indian reserve of Khanawake in Canada, home to massive Internet servers that host hundreds of gambling sites.

But, said a Sunny spokesperson, Nicole Greene, the Mohawks barred their representative from servicing the company's gambling sites. She alleges Moshal's men and the Mohawks "interfered" with Sunny gambler information on the Khanawake servers.

"Theft of information on the Internet is a serious offence - Sunny will take this matter to the furthest."

Apart from shutting down the casinos until Sunny managed to get new software and move to new servers, Greene said the interference hindered her company from paying out loyal gamblers.

"We have about 200 000 players and we owe about 20 000 of them. Our wagers last year were in the order of $250-million."

She said Sunny was then "shocked to discover that through letterbox companies... Moshal is the largest Internet casino operator in the world and has been in direct competition with his clients".

She said based on the fees paid by her company to Moshal, Sunny estimated "CyberSol" earned revenues of $720-million (about R8-billion) last year alone.

But Moshal's Isle of Man company has vehemently denied claims of interference and theft.

Moshal referred all inquiries to his Isle of Man representative Roger Raatgever, who said: "We really don't want to lower ourselves by getting into verbal slinging that is better suited to a midnight brawl.

"Most (if not all) the allegations are false. The matter is currently in legal hands."

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