What I understand is you (owlgames) are game provider/software provider for SandBoxCasino. Please confirm that I get the idea clear.
SandBoxCasino uses Owl.games' casino software, but SandBoxCasino apparently operates on its own and works independently from Owl.games. Their admin has stated they have their own userbase and bankroll among other things.
It's a sales man pitch but it's shady practice.
I agree. It shouldn't happen, and if it did, that's not the way to provide support for your customers. You shouldn't lie to them and provide them with the wrong information that could get them in trouble.