There is an unfolding scandal involving one of the best known gamblers in the world, Phillip Ivey, Jr. who has been accused of card-cheating in baccarat to the tune of $9.6 million. What is striking to me is how such allegations are treated as civil rather than criminal matters, particularly given the allegations by Borgata Hotel Casino & Spa filed in its federal lawsuit against Ivey in using effectively marked cards. The casino reads like a new script for Ocean’s Thirteen with the use of flawed dice created at a Mexican factory. I could find no reference to the lawsuit (or another lawsuit by the Golden Nugget) on Ivey’s website.
Borgata alleges that Ivey used a defect in cards made by Kansas City card manufacturer, Gemaco Inc., that allowed him to engineer good cards to be dealt in a way to predictably win at baccarat. (Gemaco Inc. is also being sued, including a lawsuit by the Golden Nugget that alleges that the company provided unshuffled cards that allowed gamblers to beat the casino for $1.5 million) The casino details four games in April and October 2012 and what it alleges was “edge sorting” in violation of casino rules and gambling regulations. This was allegedly done by using a defect in the pattern on the back of the cards. The cards have rows of small white circles that are meant to look like the tops of cut diamonds, but some of them allegedly were only a half diamond or a quarter of one.
The complaint is an insight into card cheating. It claims that Ivey and an associate told the instructor to flip the cards in a particular way depending on whether the card was desirable or undesirable. The former are cards numbered 6-9. This allowed the good cards to be arranged in a way that allegedly allowed the irregular side to be facing in a specific direction when they came out of the chute. In addition the casino says that Ivey insisted on an automatic shuffling machine so that the alignment would not change.
What I find fascinating is that a person can allegedly cheat at cards to secure millions but it is not considered a crime. If you steal chips from a table, you are criminally charged. However, Ivey is accused of violation gambling rules and regulations to secure a windfall of ill-gotten gains. While some would say that he was merely exploiting cards dealt by the casino like any good gambler, gambling regulations do not view such techniques in that way. New Jersey has a typical provision:
5:12-113. Swindling and cheating; penalties.
113. Swindling and Cheating; Penalties.
a. A person is guilty of swindling and cheating if the person purposely or knowingly by any trick or sleight of hand performance or by a fraud or fraudulent scheme, cards, dice or device, for himself or herself or for another, wins or attempts to win money or property or a representative of either or reduces a losing wager or attempts to reduce a losing wager in connection to casino gaming.
b. Consolidation of offenses. Conduct denominated swindling and cheating in this section constitutes a single offense, but each episode or transaction may be the subject of a separate prosecution and conviction. A charge of swindling and cheating may be supported by evidence that it was committed in any manner that would be swindling and cheating under this section, notwithstanding the specification of a different manner in the indictment or accusation, subject only to the power of the court to ensure a fair trial by granting a bill of particulars, discovery, continuance, or other appropriate relief when the conduct of the defense would be prejudiced by a lack of fair notice or by surprise.
c. Grading of swindling and cheating offenses.
(1) Swindling and cheating constitutes a crime of the second degree if the amount involved is $75,000 or more.
(2) Swindling and cheating constitutes a crime of the third degree if the amount involved exceeds $500.
(3) Swindling and cheating constitutes a crime of the fourth degree if the amount involved is at least $200 but not more than $500.
(4) Swindling and cheating constitutes a disorderly persons offense if the amount involved is less than $200.
(5) The amount involved in swindling and cheating shall be determined by the trier of fact. Amounts involved in acts of swindling and cheating committed pursuant to one scheme or course of conduct, whether from the same person or several persons, may be aggregated in determining the grade of the offense.
This is why I find it so odd not to see any criminal or regulatory charges if these allegations have merit. It apparently is not considered a form of fraud or con game if the alleged victim is a casino. Perhaps one of our gamblers can enlighten us.
Borgata is suiting the lawsuit but failed to properly allege details in the complaint as noted by U.S. District Court Judge Noel Hillman. They have until April 24, 2014 to correct the errors.
Gary, Make so mistake, they can and do kick people out, for any reason. If I were this kid, I would play the race card. That would make it much more interesting. They can kick you out simply because you win too much and get away w/ it. But, throw in equal rights and that changes the equation. And Gary I know your reaction to their ability to throw people out is, “That’s unfair.” You are correct.
Nick, so you are saying that if you don’t actually manipulate the game, but rather just take the information freely given by the casino to you, and use it better than the average player, that would not be considered cheating, albeit they can kick you out at will for any reason.
hoosker, Maybe an old casino or two in downtown Vegas might still be old school, but casino’s are now very corporate. Steve Wynn changed the paradigm from Teamster Union Pension Funds/Chicago,KC Cosa Nostra and Sidney Korshak to Wall St.
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Nick “Casinos don’t cheat.” I’m so relieved to know that. I hear they don’t break fingers or kill people anymore either.
@Bruce “It used to be If you counted cards when playing blackjack you would be banned from playing blackjack at certain casinos for playing at the best of your ability. What a bunch of crybabies.”
I never understood why casinos consider counting cards cheating. As long as the player isn’t using a partner or outside aid of any kind, it’s not cheating by any other standard.
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Jason, You are correct, whales are where casino’s make a lot of their money. But, if a whale were breaking the law, they would prosecute them. From the info presented, this guy broke no laws, just like card counters break no laws. But, they are persona non grata, whale or $5 bettor.
Is it possible that the casino is only pursuing civil remediation because they don’t want to offend or scare off the whales that Nick is referring to? Jail is quite a different threat than “give me back my money”.
Wav, There is no way a flaw like this is an advantage to the casino. That’s corroborated by the card manufacturer being a defendant. Casinos don’t cheat. They don’t have to. They have the odds. But, odds play out over time. The thing that a casino hates most is if you come in, hit it big quickly, and then leave. When that occurs, I cash in every time and every time the craps, blackjack dealer, the pit boss, try and get you to stay. You got a MUCH fairer game in a casino than you do on Wall Street, or the track, or jai lai fronton. Every game in the casino has the odds in their favor. The best odds for a player are baccarat, blackjack, craps in that order. The worst are those big wheels. I feel like slapping folks upside the head when they play those big wheels.
I am a gambler and the casino “policies” vary from casino to casino. There are “whales” who bet 100k a hand. In blackjack for instance, they will work out rules where they play @ a table by themselves. The casino will give them 50k up front. The casino will rebate 20% of their losses. They will allow the player to require the dealer to stay on soft 17[Ace and 6], a big advantage the house has. They will allow the whale to dictate the way the dealer dispenses cards and the pace. Again, this is all for big hitters. They in turn are required to bet certain amounts per day.
This guy is obviously a whale and had some of the aforementioned advantages negotiated. It turned out those advantages were supplemented by an advantage the casino was not aware of. Nothing criminal. Counting cards is not criminal. But, casinos have a right to refuse service to anyone. There are some things that are criminal. Having a mirror that allows you to see the dealers hand. Having a device to manipulate the dice. Having computer assisted wands that rig slots. And, in Nevada anyway their are draconian laws for this group. There are men doing 40-50 year sentences for multiple offenses in Nevada prisons.
Dan; your saying the casino let him inspect the cards before the game? And who was the accomplice, the dealer who works for the casino
Casinos or banks if you make money off them you must have CHEATED!
Um, the people posting above me do not seem to have read the post.
If what our host has written in correct, the casino is claiming that the player had access to the cards ahead of time and got an accomplice to arrange the cards in such a way as to indicate their value (to a degree).
It seems that the casino could have gotten around this conspiracy (for example by insisting on a legit shuffle). But still, the allegation is more than just looking at the backs of the cards.
Edge sorting has been around for ages, The casino used an inferior product, didn’t check the cards for defects and their staff didn’t have the brains to stop the game. So they’re going after the player that picked up on the flaw in the cards. They don’t want to pay Mr. Ivey what he won and yet they’re going after the manufacturer of the cards. It used to be If you counted cards when playing blackjack you would be banned from playing blackjack at certain casinos for playing at the best of your ability. What a bunch of crybabies.
Maybe the casino knew of the flaw and it was to be used for their advantage instead of his.
The burden of proof is lower in civil court. It’s a “preponderance of the evidence” standard, and not “beyond a reasonable doubt” basically.
I do not know if NJ Gaming has an open investigation though.
So the casino may be concurrently pursuing a civil remedy as they await results of the gaming commission investigation.
NYARw – that is the claim that Ivy has been making all along. He noticed something wrong with the cards that gave him and edge and took advantage of it. This contretemps has been going on for some time. They are sore losers and do not want to pay up.
I agree with NYARw.
Go into a casino – they set all the rules (some would argue that the gaming commissions are in their pockets), are the most knowledgeable gamblers out there, and selected/purchased the raw materials. (the cards).
More, they have the ability to expel any gambler for any reason.
If they can’t win with those advantages, then more fool them.
Edge sorting? Sounds to me like the guy grabbed a natural opportunity that was GIVEN to him by the house. I say stop whining about it and learn from the mistake.