2021 QCCQ 11045, 2021 QCCQ 11045

Saad c. Stars Group Inc. 2021 QCCQ 11045 COURT OF QUEBEC "Small Claims Division" CANADA PROVINCE OF QUEBEC DISTRICT OF MONTREAL Civil Division N°: 500-32-704928-185 DATE: October 26, 2021 ______________________________________________________________________ PRESIDED BY THE HONOURABLE SYLVIE LACHAPELLE, J.C.Q. ______________________________________________________________________ SHERIF SAAD Plaintiff v. THE STARS GROUP INC. Defendant ______________________________________________________________________ JUDGMENT ______________________________________________________________________ [ 1 ] Plaintiff Mr.

Sherif Saad " Mr. Saad " alleges that Defendant The Stars Group Inc. " Stars Group " falsly claim on their website that their software generates random number. [ 2 ] Stars Group and its subsidiaries is a licensed online gaming company, and PokerStars is its online gaming brand that entered the online poker market in 2001 when it launched its online real money poker site located on the website. [ 3 ] Mr.

Saad adds that had PokerStars stated on the website that the computer generated random numbers are in reality pseudorandom numbers he would have definitely not risked his money online and saved the huge amounts of money he lost over the years. [ 4 ] Consequently, Mr. Saad claims to Stars Group the amount of $15,000.00 to compensate part of his loss as he reduced his losses to this amount which is the maximum that he can claim through Small Claims Court. [ 5 ] Stars Group contests that claim for the main following reasons :

a) Mr. Saad is suing the wrong entity since Stars Group does not operate the website contemplated in Mr. Saad’s claim;

b) The software has been certified random by Gaming Laboratories International (GLI);

c) Stars Group operates games at the highest level of independance and integrity;

d) Mr. Saad did not file any evidence supporting his damages amounting to $15,000.00. Questions 1. Did Mr. Saad introduce proceedings against the right Defendant? 2. Did Mr. Saad succeed to prove that PokerStars does not generate random numbers? 3. In the affirmative, did Mr. Saad succeed to prove he lost $15,000.00 because PokerStars erronously informed him that it generates random numbers. The facts [ 6 ] Mr. Saad alleges that software operated on www.pokerstars.com (website) is not "fair" and does not generate "random numbers." [ 7 ] Mr.

Saad testifies that he lost repeatedly in a period of three hours although he was holding a very strong hand which brought him being suspicious that something was wrong. [ 8 ] Mr. Saad sent letters to PokerStars with screen shots of the set of cards he was playing with asking for personal statistics but PokerStars would have refused to divulge that information. [ 9 ] Mr. Saad is convinced that it is impossible to loose with the cards he had, a full, and it is not sufficient explanation for Stars Group to say that PokerStars platform is unbiased. [ 10 ] Mr.

Saad referred the Court to the book "Beginning Programming" written by Wallace Weng [1] who writes that :

Computers can’t generate truly random numbers, so computer-generated random numbers are often called pseudorandom numbers. A computer uses an algorithm to generate random numbers, but these aren’t true random numbers because the algorithm generates the same list of random numbers over and over again. [ 11 ] Mr. Saad argues that Stars Group alleges on their website that they submitted extensive information about their Random Number Generator (RNG) to an independant organization which according to Mr. Saad would be false information as it is impossible for a computer to generate random numbers. [ 12 ] Mr.

Saad adds in a letter sent to the Court after the trial that he was on Stars Group website the day after the hearing and "shockingly he found the exact paragraph to the line he got from the book he referred to during the hearing which emphasizes the fact that one of the great challenges is generating a truly random number." [ 13 ] Mr. Saad argues that because Stars Group admits on the website that any series of number produced solely by a computer can never be truly random, he succeeded to prove his claim. [ 14 ] Mr. Daniel Evans " Mr.

Evans ", Director of Investor Relations at Stars Group, filed an affidavit and testified that : 10. The Stars Group Inc. and its subsidiaries (together called “The Stars Group”) is one of the most licensed online gaming companies in the world. It holds gaming licenses or applicable approvals to operate in 22 jurisdictions and works with governments around the world to promote smart and sensible regulation that protects consumers, encourages responsible gaming, ensures efficient taxation and rewards responsible operators. 11.

As part of its governance structure, The Stars Group has an independent compliance committee consisting of five (5) gaming experts which oversees The Stars Group’s compliance with its gaming licenses. In addition, there is a fully functioning Board and audit committee, both of which feed into a culture of compliance. 12. The Stars Group’s poker software uses a random number generator (“RNG”) which is a System, device or module that creates a sequence of apparently unrelated numbers. As detailed on the Website, we use a ground-breaking system based on quantum theory.

A single photon is directed at a semi-reflective mirror; the angle at which it is reflected, or whether it passes through, is an entirely random process that can never be accurately predicted, reproduced or interfered with. 13. The RNG produces unpredictable and statistically random sequences and has successfully been tested to generally-accepted industry standards for highly - regulated jurisdictions, as demonstrated by a Certificate of Integrity for successful Evaluation Performed [2] issued to The Stars Group on January 20, 2015, re-issued on October 17, 2016 and valid until October 17, 2020. 14.

Over the years, The Stars Group has submitted extensive information about its RNG to independent organizations. Since 2014, the RNG has successfully been tested by Gaming Laboratories International (“ GLI ”). 15. GLI provides fully accredited independent third-party testing, auditing and certification services and is a widely recognized independent gaming product testing laboratory. Contracted by gaming operators and software suppliers, and working on behalf of gaming authorities, GLI verifies technical compliance with regulatory and technical gaming standards.

According to its website [3] , GLI was created in 1989, and since then the company has certified more than 1,757,470 items and has either consulted on and/or tested equipment for more than 475 jurisdictions. 16. According to its website, GLI is approved in all regulated iGaming markets around the world and seeks accreditation in new iGaming markets as they emerge. GLI accreditation is based on multiple ISO Standards (ISO/IEC 17025:2005; ISO/IEC 17020:2012; ISO/IEC 17065:2012). 17. The Defendant’s RNG and specific gaming products are audited by GLI. [ 15 ] Mr.

Evans attached a copy of the 2014 Report from GLI [4] regarding the RNG used on the website (the website that Mr. Saad used) and he draw our attention to page 4 which states : " Overall evaluation of the Random Number Generator GLI’s conclusion based upon the tests applied to the RSL RNG data is that this random number generator has exhibited random behavior and is suitable for the applications as described herein. If a game utilizes a different range or a different number of selections from the included ranges, the RNG should be resubmitted to test that set of parameters . " [ Mr.

Evans emphasIs ] [ 16 ] According to Mr. Evans, Prior to using GLI, PokerStars obtained certifications for its software from another company called Cigital Digital Inc . (“ Cigital ”) . Cigital is now part of the Synopsys group, a leading technology group based in Silicon Valley, California. In 2010, PokerStars obtained a Certificate of Security [5] for the RNG which expired on 31 December 2012. In its findings, Cigital stated: “Cigital certifies that the RNG used by PokerStars produces unpredictable and statistically random sequences that are used to generate the hands dealt on PokerStars.com.

Cigital found that the Poker-Stars implémentation adhères to current best practices in generating random seed values. Source code analysis did not produce any evidence of improper calculations using the random numbers or misuse that would introduce predictability or bias.”

Judgment [ 17 ] Stars Group argues that Mr. Saad is suing the wrong entity since Stars Group does not operate the website contemplated in Mr. Saad’s claim. [ 18 ] The Court is of the view that as drafted the Demand raises issues with respect to the operation of PokerStars and Stars Group. [ 19 ] Therefore, this argument is dismissed. [ 20 ] Mr.

Saad argues that he has succeeded to prove his claim because Starts Group has admitted on its website that any series of numbers produced solely by a computer can never be truly random. [ 21 ] If such allegations were considered as facts they appeared rather vague, out of context and strongly hypothetical which is not evidence. [ 22 ] Mr. Saad’s allegations to the effect that PokerStars’ software is not fair and does not generate random numbers constitute an opinion and Mr.

Saad is not an expert and the extract of the book he referred the Court to is not expert written opinion either. [ 23 ] Stars Group demonstrated that the software has been certified random by Gaming Laboratories International an independant gaming product testing laboratory and therefore, the games utilise approved random number generators. [ 24 ] Furthermore, Mr. Saad alleges that he has been playing on PokerStars for so many ears, losing tens of thousands of dollards. Thus, Mr. Saad did not file any evidence whatsoever supporting and establishing his damages amounting to $15,000.00. [ 25 ] Mr.

Saad has the burden of proof. To succeed he must establish his claim, by a preponderance of proof, but he failed to do so. FOR THESE REASONS, THE COURT : DISMISSES Plaintiff’s Demand; WITH COSTS . __________________________________ SYLVIE LACHAPELLE, J.C.Q.