New Zealand's lost colossus: all-mechanical racetrack oddsmaking computer


In 1913, George Julius installed a building-sized, all mechanical odds-calculating computer at Auckland, NZ's Ellerslie racetrack, powered by huge iron weights that slowly pulled down bike chains over sprockets, driving the clockwork device as it "totalised" all the bets laid on horses at the track, keeping the odds in constant balance so that all the bettors were effectively betting against one another, in a system called "pari-mutuel" betting. Read the rest

A former casino floor manager offers tips for beating the odds

Apropos of Rob's post yesterday about the plight of card counters in casinos, Mental Floss has a number other methods for improving your odds at a casino. They interviewed Bill Zender, a former professional card counter, dealer, and casino floor manager. I think Zender's most useful tip is finding a sloppy, drug-addled dealer who regularly flashes their hole card. This probably doesn't happen often, but when it does, you can rake it in.

Zender estimates there are fewer than 100 professional blackjack card counters in the world. If you happen to be one of them, you might nab a 1.5 percent advantage. So save your energy, Zender advises; instead keep an eye out for the sloppy blackjack dealer who will accidentally flash the face-down card. Zender once made a living exploiting this, keeping a notebook of 35 weak dealers from 16 different casinos. The strategy is called “card holing,” and it can give you a 6 to 9 percent edge over the house. (That’s like standing in front of an ATM that spits out twenties!) The best part? “It’s totally legal,” Zender says. “They may throw me out of the casino, but they’re not going to arrest me.”

Image: Daniel J. Prostak Read the rest

The occult gambling game giving out amulets of real gold

What in the unknown world is Jason Rohrer up to now?

Anti-vaxxer ordered to pay EUR100K to winner of "measles aren't real" bet

Stefan Lanka, a "vaccination skeptic" who claims that measles are a psychosomatic condition brought on by "traumatic separations," publicly challenged people to prove that measles was caused by a virus. Read the rest

Chinese property developer has $160 million gambling debt

A Chinese property development executive, known as the "Red King of Gambling" owes $160 million in gambling debts to casinos in Macau. Read the rest

Sore losers: How casinos went after two guys who found a video poker bug

John Kane, who'd lost a fortune to Video King machines, discovered a subtle bug that let him win big -- so the casinos put him in handcuffs. Read the rest

Casino sues poker star for using "marked" deck

The Borgata Hotel Casino & Space is suing World Series of Poker star Phil Ivey for nearly $10 million for using what they claim are "imperfect" playing cards that gave Ivey a leg up. Borgata is also going after Gemaco, Inc., makers of the playing cards. From

The suit alleges that the some of the cards made by Gemaco turned out to not have a perfectly symmetrical design on the back of the card. Ivey, the suit claims, was able to figure out what the first card to be dealt was – giving him a significant advantage over the “house,” or casino.

Ivey contacted Borgata officials in April 2012 and sought to play mini-baccarat for up to $50,000 a hand on the $1 million he would wire to the casino, according to the suit. Given Ivey’s high-roller status, the casino agreed to his request that he would be given a private area in which to play as well as provided with a card dealer who spoke Mandarin Chinese. The casino also agreed to let Ivey bring a guest to the table as well, to provide one purple deck of Gemaco playing cards for use, and for an automatic card shuffling device to be used.

According to the suit, “The pretext given for some of these requests was that Ivey was superstitious."

"Famed poker star Phil Ivey sued by Borgata for almost $10 million over alleged playing card scam" (Thanks, Gil Kaufman!) Read the rest

Capitalism, casinos and free choice

Tim "Undercover Economist" Harford's column "Casinos’ worrying knack for consumer manipulation," takes a skeptical look at business and markets -- specifically their reputation for offering a fair trade between buyers and sellers. Inspired by Natasha Dow Schüll's book Addiction by Design: Machine Gambling in Las Vegas, a 2012 book on the calculated means by which gamblers are inveigled to part with more money than they consciously intend to, Harford asks a fundamental question about capitalism: are markets built on fair exchanges, or on trickery? Read the rest

How to Cheat at Everything: an encyclopedia of cons

Back in 2007, I reviewed a great book called How to Cheat at Everything, by Simon Lovell. Lovell's book, nominally a guide to committing fraud, was really a tremendous catalog of all the ways that we get conned -- all the deceptive psychology that goes into cons long and short. It's a book that's simultaneously paranoid and liberating, and I've turned to it several times in the years since. I'm not the only one -- I still get email from people who found it through my review, years later. So I thought I'd revisit it today -- including the colorful notes about Lovell that readers sent in back in 2007. Read the rest

Short documentary about the psychology of slot machines

Cool Hunting: "During a visit to Las Vegas we had the opportunity to dig a little deeper with Bally Technologies' Director of Game Development, Brett Jackson. He offered some insight into the surprisingly complex innovation, psychology and design behind the slot machines that illuminate so many casino floors." Read the rest

Casino cheats used house CCTVs to score $32M

A rich, high-stakes gambler was dragged out of his opulent comp suite at the Crown Towers casino in Melbourne, accused of participating in a $32M scam that made use of the casino's own CCTV cameras to cheat.

The Herald Sun understands remote access to the venue's security system was given to an unauthorised person.

Images relayed from cameras were then used to spy on a top-level gaming area where the high roller was playing.

Signals were given to him on how he should bet based on the advice of someone viewing the camera feeds. Sources said the total stolen was $32 million.

They are capable of transmitting the most intricate detail of goings-on inside the building.

Casinos were the world leaders in CCTV use, and really represent ground zero for the panopticon theory of security. What is rarely mentioned is that "security" measures can be turned against defenders if attackers can hijack them. This is as true when a mugger uses his victim's gun against him as it is when a casino's own CCTVs are used to defeat its own anti-cheating measures. This is the high-stakes gambling version of all those IP-based CCTVs that leak sensitive footage of the inside of peoples' houses onto the public Internet.

Crown casino hi-tech scam nets $32 million [Mark Buttler/Herald Sun]

(via /.) Read the rest

WTO gives Antigua the right to sell pirated American copyrighted goods

The WTO agreement is supposed to guarantee level playing fields for its member states, allowing each to sell into the others' markets. But US law bans online gambling, which is the major export from Antigua. Antigua has been going back and forth with the USA in trade court since 2003, and now the WTO has agreed that the US has violated its treaty obligations. By way of reparations, the WTO has given Antigua permission to set up a kind of legal pirate market, where American copyrighted works can be sold without permission or royalties. The initial ruling came in 2007, and was affirmed on Monday. Antigua has announced plans for a site for downloading US software, music and movies.

Antigua’s Finance Minister Harold Lovell said in a comment that the U.S. left his Government no other option than to respond in this manner. Antigua’s gambling industry was devastated by the unfair practices of the U.S. and years of negotiations have offered no compromise.

“These aggressive efforts to shut down the remote gaming industry in Antigua has resulted in the loss of thousands of good paying jobs and seizure by the Americans of billions of dollars belonging to gaming operators and their customers in financial institutions across the world,” Lowell says.

“If the same type of actions, by another nation, caused the people and the economy of the United States to be so significantly impacted, Antigua would without hesitation support their pursuit of justice,” the Finance minister adds.

Antigua’s Legal “Pirate Site” Authorized by the World Trade Organization [Ernesto/Torrentfreak] Read the rest

Casino panopticon: a look at the CCTV room in the Vegas Aria

A fascinating article in The Verge looks at the history of casino cheating and talks to Ted Whiting, director of surveillance at the Aria casino in Vegas, who specced out a huge, showy CCTV room with feeds from more than 1,100 cameras. They use a lot of machine intelligence to raise potential cheating to the attention of the operators.

Despite that, Whiting says facial recognition software hasn’t been of much use to him. It’s simply too unreliable when it comes to spotting people on the move, in crowds, and under variable lighting. Instead, he and his team rely on pictures shared from other casinos, as well as through the Biometrica and Griffin databases. (The Griffin database, which contains pictures and descriptions of various undesirables, used to go to subscribers as massive paper volumes.) But quite often, they’re not looking for specific people, but rather patterns of behavior. "Believe it or not, when you've done this long enough," he says, "you can tell when somebody's up to no good. It just doesn't feel right."

They keep a close eye on the tables, since that’s where cheating’s most likely to occur. With 1080p high-definition cameras, surveillance operators can read cards and count chips — a significant improvement over earlier cameras. And though facial recognition doesn’t yet work reliably enough to replace human operators, Whiting’s excited at the prospects of OCR. It’s already proven useful for identifying license plates. The next step, he says, is reading cards and automatically assessing a player’s strategy and skill level.

Read the rest

Bitcoin casinos report large profits

Bitcoin-based casinos are reporting pretty serious, six-figure profits on a series of games wherein players' apopheniac tendencies cause them to hallucinate non-randomness in the performance of a pseudorandom-number generator. The casinos claim that their financial numbers can be trusted because of BitCoin's shared logfile, which can be parsed to show their earnings.

SatoshiDice, which has servers based in Ireland, is a pseudo-random number generator game where players choose a number and then bet on the likelihood that a “rolled number” is greater than the one they’ve selected. If the rolled number is greater, then they win. The house has a 1.9 percent edge—which is where the profit comes in.

The online dice game has returned profits to the tune of ฿33,310 ($596,231) during 2012—an average actual profit of ฿135.96 ($2,416) per day from May through December 2012. During that period, players put down a total of 2,349,882 bets. That’s still minuscule by Las Vegas standards, but respectable.

bitZino, by contrast, released its figures in early January and seems to be doing a decent pace of business too (bitZino's bookkeeping only measures June 9 to December 31, 2012). The online casino—hosted in the US, offering online poker, blackjack, craps, and roulette—did not publish a profit and loss statement. bitZino did say it had paid out ฿28,986 ($495,000)—and that 3.2 million wagers were made during H2 2012.

Bitcoin-based casino rakes in more than $500,000 profit in six months Read the rest

Pokertox: freezing the face-muscles implicated in your poker tells

NYC's Dr Jack Berdy offers a botox treatment called "pokertox," which freezes parts of the face implicated in poker "tells" -- nonvolitional expression-changes that signal your opinion of your cards to your adversaries.

Some players look at their cards and ‘‘might raise their eyebrows or raise one eyebrow’’ if they do or don’t like what they see.

“Some squint, or furrow their brows,’’ Berdy said.

“We can inject Botox appropriately’’ so the other player doesn’t get the message that they’re angry, disappointed or happy.

“What someone sees across the table is no movement,’’ he said.

Remember the TSA's plan to turn mall-cops into mind-readers by teaching them to read semi-mythical "microexpressions" and so detect terrorists? Even if it worked, anyone wanting to foil it could presumably plump for some terror-tox injections and pass through the TSA look-into-my-eyes-and-swear-you're-not-a-jihadi checks smoothly and without batting an eyelash.

Botox poker face [NYPost/Rita Delfiner] (via Neatorama) Read the rest

How a high roller took millions off three Atlantic City casinos without cheating

Mark Bowden's Atlantic article tells the story of Don Johnson, a high-rolling gambler who broke the bank at three Atlantic City casinos without card-counting or other "cheats."

Years ago, I was mildly obsessed with understanding casino economics and cheats, and read a bunch of books on how to win (or at least lose slowly) at a casino. The consensus among the experts I read was to realize that most skill-based casino games are only mildly "negative expectation" (that is, if you play them with perfect statistical strategy, you'll lose a little money over time). Also, most casinos distribute "comps" (freebies) to make up about forty percent of your estimated losses. These losses are calculated by pit bosses who keep an eye on consistent gamblers and observe the size of your normal bet and the tightness of your play, then make a guess at how much you're losing per hour, and multiply that by the number of hours you spend at the table (or at least, they did -- some casinos now use automated stored-value wagering cards that eliminate the need for estimation).

The secret to converting the negative expectation game to a positive expectation game was to trick the pit bosses. Play very slowly when the pit boss isn't watching, making the minimum bet on each hand and losing as slowly as possible. When the pit boss comes by to look, start playing fast and loose, and increase your bet-size. If the ruse works, the pit-boss will be tricked into comping you enough freebies to make your play pay, even if only by a little. Read the rest

Christian card counters

In the NYT, Mary Pilon profiles a (now defunct) ring of Christian blackjack card-counters who lead Bible-study classes and youth groups when they're not scoring millions at the casinos. One such Christian counter, Colin Jones, has branched out into running for-pay card-counting workshops for would-be sharps. One of the team has produced a documentary on the team's activities, called Holy Rollers.

But first Jones and his group had to wrestle with the apparent moral paradox: Should Christians be counting cards?

“My father-in-law flipped out about it,” Jones said. “I remember Ben and I discussing everything. Are we being dishonest to the casinos? Is money an evil thing?”

Group members believed what they were doing was consistent with their faith because they felt they were taking money away from an evil enterprise. Further, they did not believe that counting cards was inherently a bad thing; rather, it was merely using math skills in a game of chance. They treated their winnings as income from a job and used it for all manner of expenses.

Read the rest

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