Duelbits Casino - One Sided Admin Fee Issue

[vipgrinders]

Hi everyone,

Over the last ten months, we’ve promoted Duelbits on a 40% revenue share deal based on net gaming revenue (NGR). After consistent negative results, we noticed something unusual: a 30% admin fee is taken only when the player loses, and 0% when the player wins.

Here’s what that looks like in practice using activity from the same player on two different days:

Day	Player Result	Admin Fee	NGR	Commission (40%)
1	-$100 (player loss)	30%	$70	$28
2	+100 (player win)	0%	-$100	-$40

Despite the player finishing breakeven over the two days, the affiliate is -$12. This configuration has a huge impact over months of play and hundreds of players. For reference, this is our Net Cash (Deposits - Withdrawals) and our NGR for the 10 months:

• Net Cash: +$100,000 - Illustrative figure only (the actual figure has been redacted as confidential information)
• NGR: -$21,700 - Illustrative figure only (the actual figure has been redacted as confidential information)
• Commission: -$8,880 - Illustrative figure only (the actual figure has been redacted as confidential information)

We've tried to address this with Duelbits since March, but we haven't been able to for the past four months. First, they said this was "industry practice" and their counteroffer was increasing our deal from 40% to 45%, so earning a higher percentage of a negative NGR.

We created an article where we explain in more detail the situation at https://www.vip-grinders.com/affiliate-experience-duelbits/ <article removed by vipgrinders in response to the threat of legal action by Duelbits, link inactivated> and would like to know if someone had a similar situation and help us address this with Duelbits.

Thank you,
VIP-Grinders Team

[allfreechips]

SO they don't calculate admin fee on totals? If they dont close the books on a certain time like end of month and calculate all at once i would leave them asap, hopefully this is a (bug) and they are not actually stealing from you!

[vipgrinders]

Thanks for the reply

From our testing, they calculated admin fees on total player performance on a daily basis, as their NGR numbers update once a day.

So if your player wins $10 on Day 1, the update on Day 2 will show NGR -$10 with 0% admin fee applied

Then, if he plays on Day 2 and loses $10, your NGR on Day 3 update will show +$7 with 30% admin fee applied

You can see how this has a devastating effect for affiliate with the more turnover players generate and the more players you have, as from our account data

[allfreechips]

Yes that is robbery, they need to use NET #'s

[MichaelCorfman]

Earlier today the GPWA received the following correspondence regarding this thread via email from attorney Adam Gonnelli of www.arglawoffice.com.

Law Office of Adam Gonnelli LLC
Admitted in New York and New Jersey

July 25, 2025

By Email and FedEx
Gambling Portal and Webmasters Association
33 Needham Street
Newton, Massachusetts, 02461

Re: Legal Demand for Removal of Trade Secrets From GPWA Site

Dear Gambling Portal and Webmasters Association,

This office represents Liquid Entertainment N.V., dba Duelbits, a cryptocurrency casino based in Curaçao.

On July 7, 2025 <redacted company name>, a Maltese company doing business as VIP-Grinders, posted “A One-Way Admin Fee: The VIP-Grinders
Affiliate Experience With Duelbits” on the GPWA site (the “Post”):

https://www.gpwa.org/forum/duelbits-casino-one-sided-admin-fee-issue-270707.html#post1016115

The Post contains Duelbits trade secrets and confidential information in violation of Duelbits’ agreement with VIP-Grinders including “first time depositor” data, a screenshot of an affiliate activity report, revenue results, and confidential communications with Duelbits.

In response to a legal demand issued by Duelbits, VIP-Grinders removed the post from its own website: https://www.vip-grinders.com/affilia...ence-duelbits/.

Duelbits asks that GPWA also immediately remove the Post from the GPWA site.

Please confirm that GPWA will comply with this demand as soon as possible.

If you wish to discuss this issue, please contact the undersigned.

Very Truly Yours,

Adam Gonnelli

cc: Information Technology Systems, Inc.

707 Alexander Road • Building 2 - Suite 208 • Princeton, New Jersey 08540
adam@arglawoffice.com • (917) 541-7110

In the coming days we will determine how to respond to this demand letter. Certainly we will not remove the post as requested, although it is possible we will edit the post as necessary so that trade secret information is not published in this thread if Attorney Gonnelli provides satisfactory evidence to us that trade secret information is indeed published in this thread. Right now, the attorney claims a screen is included in the post, which is clearly false, and has not provided any evidence the material posted actually contains trade secrets.

Michael

[MichaelCorfman]

I have now responded to the demand letter as follows:

Dear Attorney Gonnelli,

Your email, including the letter attached to the email, was forwarded to me earlier today.

My name is Michael Corfman, and I am the CEO of Information Technology Systems, Inc. The Gambling Portal Webmasters Association is a division of that business.

Your letter asserts a post on the GPWA website contains trade secret information, but you did not provide any actual evidence that was the case. In fact, you made a clearly false statement when you said the post included “a screenshot of an affiliate activity report” since the post did not include any screenshots. Perhaps the article linked to in the post contained screenshots? I cannot tell, since that article has been taken down, as you stated in your letter.

For us to consider your request, you must specifically quote exactly what material you believe constitutes a trade secret, and you must also provide specific evidence the quoted information is indeed trade secret information. However, please understand that we will not remove the post or the responses. At most we would redact specific trade secret data and replace it with example data to illustrate the point being made.

Please be aware that as a media company we take our First Amendment rights very seriously. We are well known in the online gaming industry for a lawsuit we filed requesting a declaratory judgment that we have a First Amendment right to advertise online gaming sites filed in 2004. You can see more information about that suit here: https://online.casinocity.com/firstamendment/.

Separately, as is our practice, and as is permitted under Massachusetts law, we have posted the contents of your demand letter and our initial thoughts regarding your demand letter in the subject thread. You can read the post I made here: https://www.gpwa.org/forum/duelbits-...ml#post1016774. Additionally, I will be posting this response letter in that same thread.

Being an attorney, I’m sure you understand that Massachusetts has adopted the Uniform Trade Secrets Act (MTSA, M.G.L. c. 93, §§ 42–42G), which protects against the misappropriation of trade secrets. However, this protection is directed at the party that misappropriates or improperly uses the secret, not necessarily at a neutral platform or publisher. Also, under 47 U.S.C. § 230 (CDA § 230), media companies such as the GPWA, that host third-party content in community forums, are not liable for content posted by users. This includes most claims related to trade secret misappropriation unless the platform was directly involved in the wrongful act.

If you would like to speak to me, I can be reached at 1.617.964.6250 x 112.

Yours truly,

Michael Corfman
CEO, Information Technology Systems, Inc.
Executive Director, GPWA

Michael

[MichaelCorfman]

Earlier today the GPWA received the following additional correspondence regarding this thread via email from attorney Adam Gonnelli of www.arglawoffice.com.

Law Office of Adam Gonnelli LLC
Admitted in New York and New Jersey

August 4, 2025
By Email and FedEx
Michael Corfman
Gambling Portal and Webmasters Association
33 Needham Street
Newton, Massachusetts, 02461

Re: Legal Demand for Removal of VIP-Grinders Post Which Violated Duelbits’ Terms and Conditions

Dear Mr. Corfman,

We wrote to the Gambling Portal and Webmasters Association as well as its parent company, Information Technology Systems, Inc. on July 25, 2025 concerning a July 7, 2025 post from vipgrinders titled “Duelbits Casino – One Sided Admin Fee Issue.”

We requested that GPWA remove the post because it contains trade secrets and confidential information in violation of Duelbits’ Agreement with VIP Grinders.

In response, on July 25, 2025 you posted our letter on the GPWA site accompanied by comments refusing to remove the post followed by a substantive response concerning application of the Massachusetts Uniform Trade Secrets Act and the Communications Decency Act.

As an initial matter, is the GPWA represented by counsel? If so, I am obliged to contact them directly unless you permit me to do otherwise.

To the extent your response is a request for additional information, please note the following:

The agreement between Duelbits and VIP-Grinders includes a confidentiality clause:

CONFIDENTIALITY
18.1. All information, including but not limited to business and financial, lists of customers and buyers, as well as price and sales information and any
information relating to products, records, operations, business plans, processes, product information, business know-how or logic, trade secrets, market opportunities, Affiliate Network, Affiliate Program, Sub-Affiliates and personal data of the players of the Company shall be treated confidentially. Such information must not be used for own commercial or other purposes or divulged to any person or third party neither directly nor indirectly unless prior explicit and written consent has been provided by the Company. This provision shall survive the termination of the Agreement.

18.2. The Affiliate obliges himself/herself not to use the confidential information for any purpose other than the performance of its obligations under the Agreement.

The specifics of the commission agreement and operational results fall within this provision. VIP-Grinders recognized this and withdrew their post.

We again request that you do the same.

Lastly, FedEx contacted me about the hard copy of the letters we sent and told me the recipients requested the letters be held for pickup. If 33 Needham is not the correct address of GPWA, please let me know.

Very Truly Yours,

Adam Gonnelli

707 Alexander Road • Building 2 - Suite 208 • Princeton, New Jersey 08540
adam@arglawoffice.com • (917) 541-7110

It will likely be a few days before I respond to this latest correspondence.

Michael

[allfreechips]

They should go to jail for the removing losses only method as its pure theft... but glad to see your not blindly removing the post and are seeking clarification, if required VIP could edit the post to show imaginary numbers with the same type of math that shows this company either is stealing or is terrible at math.

[MichaelCorfman]

They should go to jail for the removing losses only method as its pure theft... but glad to see your not blindly removing the post and are seeking clarification, if required VIP could edit the post to show imaginary numbers with the same type of math that shows this company either is stealing or is terrible at math.

While I have not decided how to fully respond to the latest letter from attorney Adam Gonnelli, as a temporary measure, I have removed the confidential information showing the actual Net Cash, NGR and Commission originally posted and replaced them with example figures, for illustrative purposes only, that show the practical impact of the commission practices of Duelbits Casino.

Michael

[Cash Bonus]

Very best of luck with it all, Michael, and hopefully the GPWA comes out strong and on top of this irritating trouble very soon. Some people will do anything for some quick money, even to the point of using underhanded tactics. Absolutely disgusting.

[MichaelCorfman]

I have now responded to the follow-up letter from Attorney Gonnelli representing Duelbits Casino as follows:

Dear Attorney Gonnelli,

Your email and letter dated August 4, 2025 were forwarded to me yesterday. For your future reference, further email correspondence should be sent directly to me at michael@gpwa.org.

In your letter you asked if the GPWA was represented by counsel, indicating if that was the case you would be obliged to contact them directly unless I permit you to do otherwise. In fact, I have not engaged counsel with respect to this matter. Accordingly, unless I inform you otherwise in the future, all contact regarding this matter should be made directly with me as the CEO of Information Technology Systems, Inc. Also, please know the Gambling Portal Webmasters Association (GPWA) is not a separate business. Rather, those are trade names of Information Technology Systems, Inc.

You are correct I was seeking additional information in my July 25, 2025 response to your earlier letter. Your initial communication alleged that confidential information had been posted on the GPWA website, but you had not provided any information to substantiate that claim or to indicate what material contained in the post was confidential.

In your new correspondence, you provide paragraphs 18.1 and 18.2 from an agreement you claim GPWA member vipgrinders was a party to and violated when making the “Duelbits Casino - One Sided Admin Fee Issue” post within the GPWA forums.

While you did not identify the exact content within the post that you believe violated the agreement, I have edited the subject post in an effort to redact any actual operational results that I agree would be a clear and direct violation of such an agreement. Specifically, I removed the 10-month Net Cash, NGR, and Commission figures published in the post and replaced them with the illustrative figures of +$100,000, -$21,700 and -$8,880. I also made it clear those figures are illustrative and not actual figures. Accordingly, I believe all actual operational results have been removed from the post.

Separately, disclosing information regarding how Duelbits Casino calculates affiliate commissions is in the public interest. As expressed in comments made by GPWA members in response to the vipgrinders post, your client’s business practices are considered unethical by the affiliate community. In Massachusetts, where the GPWA is domiciled, courts have refused to restrain the publication of confidential information that exposes unethical behavior or misconduct. For example, in Jean v. Massachusetts State Police (1st Cir.), a publisher was not required to take down confidential video content.

In general, a Massachusetts publisher like the GPWA cannot be punished for publishing confidential information they did not help to obtain illegally, if a) the information is newsworthy; b) it was lawfully received by the publisher (i.e., not stolen by the publisher themselves); and c) the matter is of public interest. For example, in Bartnicki v. Vopper, 532 U.S. 514 (2001), a radio host aired a phone call that had been illegally intercepted and leaked by a third party. The Court held that because the journalist did not participate in the illegal interception, and the content was of public concern, the publication was protected by the First Amendment.

In terms of the FedEx letters you sent, the reason I requested they be held for pickup is because our office is not occupied on a full-time basis since our employees generally work from home. FedEx had left a notice on our office door that the letters were going to be returned since no one was there when they attempted delivery. In response, I contacted FedEx and requested they be held until I was able to pick them up. Letters sent to our office should be sent via the U.S. Postal Service, and should not require a signature, so they can be delivered to our mailbox when no staff members are in our office.

Please let me know if you wish to discuss the post further, or if this reply and my actions redacting operational results puts the matter to rest from your perspective.

Please also know that should Liquid Entertainment choose to retaliate against the company VIP-Grinders, or GPWA member vipgrinders, for exposing the unethical affiliate calculation methods used by Duelbits Casino, I will not consider the matter to be closed.

As the Executive Director of the GPWA I strongly recommend Liquid Entertainment carefully review and adjust its current approach to calculating commissions. Part of my job, representing tens of thousands of affiliate members around the globe, is to create visibility in the industry so those who operate ethically thrive and those who do not are forced the face the music of their actions. I take that aspect of my job very seriously.

Yours truly,

Michael Corfman
CEO, Information Technology Systems, Inc.
Executive Director, GPWA

Michael

[MichaelBluejay]

Mr. Corfman: Thank you very much for eloquently and publicly standing your ground, and f**k DuelBits.

[MichaelK]

It’s always a huge embarrassment for a lawyer when they send letters containing obvious falsehoods — like claiming there are screenshots that simply aren’t there. One can’t help but wonder: was this written by AI, or not?

In some bar associations, there have already been disciplinary proceedings over this kind of conduct, treating it as serious professional misconduct — when a lawyer dared to generate not only court filings, but even fabricated judgments.

[wonderpunter]

So rather than resolve the tactics they choose escalation and have now marked themsleves as a brand never to do business with. Genius.