That shady individual is a thin old dwarf going by name (probably his criminal alias) 'Skoot'.
Sparkle is supposed to be a clean town. Places like gambler dens or debauchery nests should be supervised by local authorities or closed down.
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Skoot continues: HERE BE YER CHALLENGERS! Evenly matched, we have Kelrhys versus Danec! Ye have 30 seconds to <bet> yer coins! >bet 1 platinum coins on kelrhys You can bet 5, 10, or 20 gold or platinum. Other amounts are not accepted. > bet 5 platinum coins on kelrhys You pay 5 platinum coins to Skoot, hoping this bet will pay off. Skoot counts over the coins, pockets them, and croaks: A bet fer Kelrhys then! I'll mark ye down fer that, and good luck to ye! Danec abruptly breaks off its grip, stands up and walks away from the crate, forfeiting the match! Kelrhys appears mildly annoyed at the abrupt departure of her opponent, and then quietly leaves the crate without a word to wipe both names from the board. Skoot roars: ... THE MATCH BE FORFEIT!?? A SHAMEFUL DISPLAY!! Skoot makes his way around the room to return bet monies, grumbling angrily. Skoot yells: Ha! Syrk ain't here?? I keep the bet! You gasp in astonishment.