A gamble you can’t lose

February 12, 2002 6:37 AM
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It was just like the answer to a gambler’s dream.

A Canadian gaming software maker was embarrassed to admit during its quarterly conference call that they had lost about $1.9 million because a hacker was able to break into the company’s Web servers.

Jean Nolting, CEO of CryptoLogic Inc. (CRYP) said the company had filed a claim with its insurance company to recoup the loss but felt the prudent approach was to take the charge during the quarter.

According to the company’s explanation, the hacker broke into the company’s servers and reprogrammed slot machines and a craps table at two of the casinos that used CryptoLogic software. Some 140 online gamblers took advantage of the changes that caused the slot machine and craps players to win every time they made a play.

There was no explanation of how or when the company became aware of the problem or how it was fixed.

However, it was noted that the company was examining offshore markets, particularly in light of the refusal by many U.S. banks to accept credit card charges from online gambling sites. The company’s future focus would be on the Europe and Asian markets.