My understanding is that the sportsbook contract out their casino to BLR Tech and that they get a share of revenue. 5 Dimes just removed their cash back casino (operated by BLR Tech). If BLR Tech gets a share of revenue from their casino operations, then certainly it would be in their best interests to go rogue, figuring that no one would do such a rigorous statistical analysis (as was provided by the OP at Wizard of Vegas and the Wizard of odds himself).
Since BLR only operates at Sportsbooks, my thought is that the Sportsbook was providing the casino as a convenience to its members. Sportsbooks' business model is to earn its revenue at the Sportsbook and not its casino operations. Therefore, it would make sense to outsource its casino business and to share the revenue. In a revenue sharing arrangement, the casino would not have knowledge of BLR's source code. They would see the revenue and might just figure the players were unlucky.
From 5 dimes via the Wizard of Odds:
"With the present accusations and facts against the BLR casino platform, the 5Dimes group has chosen to remove this casino platform from our multiple casino lineup.
BLR was given ample time to address the concerns of forum members as well as our direct questions. No acceptable answers were given, so the casino platform was removed.
A management decision was made to eliminate that casino and focus on expanded offerings with the other casino platforms."