Only in fun mode - a very likely explanation
I believe in the following explanation, because there was a similar issue in the good old days with a poker room.
(See this link for a more detailed technical explanation, probably you can start with chapter Shuffling a Virtual Deck of Cards, and read chapter Breaking the System on page 3: http://itmanagement.earthweb.com/ent...11070_616221_1)
The fun mode uses some algorithm to generate the next number, which is different to the algorithm used in real mode. The fun mode algorithm is PC local, the real mode goes to the server.
The fun mode algorithm has a period (period is limited by the seed of the local PRNG), let's say 2^32. So it can only produce 2^32 different outcomes, which is then mapped to the 0..36 interval, and probably even not all 2^32 outcomes are used. With some "cracking" it might be possible to produce the complete list of numbers within the period. After that it is possible to do a pattern matching algorithm using the 10-element sample you provide on the whole sequence of numbers within the period. After finding the correct prefix via the sample it is simple to tell the next number in the period.
Once again, this was only a very brief description, see the article for more details.
And it only works for fun mode, because fun mode PRNG doesn't have so high security standards and period for practical purposes I guess. So I can imagine that they can predict fun mode, but I don't think that they will ever be able to predict real mode, because it should be a different algorithm.
The hard "cracking" step might have been done with or without insider help.
"Only your bad luck is visible -- your good luck often slips by unnoticed." Dan Harrington
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