How Card Counting Can Help You Become an Advantage Player in Life

The inaugural Golden Dome Awards was one of the featured events of the last day of the WGPC. Video of some of the best scams caught by surveillance in casinos across the country were shown in three major categories:
1)   Table Game Takedowns
2)   Slot Takedowns
3)   Theft Takedowns

The video clips were judged on the following criteria:
1.   Slickness of move
2.   Uniqueness of move
3.   Financial reward
4.   Quality of footage

While watching the video clips two things really struck me. One, cheaters are a completely different breed. As I watched cheaters commit illegal acts such as marking and switching out cards, I was amazed by their audacity. Not only was there a lack of a moral code.  It was apparent they did not have much regard for the distinct possibility of ending up in jail.  As an advantage player, the combination is something I can’t relate to. As in any occupation, there is a wide range in skill among cheaters.  The videos of amateur cheaters and their clumsy attempts to rip off casinos drew laughter from the audience.  On the other end of the spectrum, the pros were incredibly smooth, and I could almost sense an air of adversarial respect among attendees.

The second thing that struck me was just how daunting a task it is for casinos to prevent internal theft, which is the number one threat to casinos.   Even with strict rules and protocols in place, there will always be casino employees who try to steal, especially those who find weaknesses in procedures.  Casino procedures that gamblers may find unnecessary and even amusing such as dealers clapping out their hands before leaving the table have a legitimate purpose.  Given the myriad of potential employee theft, surveillance has a very full plate, especially when you factor in the  additional responsibilities of detecting cheaters, scam artists, and advantage players.

Among the video clips that involved employee theft there were two that stood out.  One video caught a woman who worked in a cash counting room stuffing money down the front of her pants with her co-workers very close by. She didn’t earn any style points, c0nsidering how awkward her move was.  Given that the cash counting room is always monitored I don’t know how she thought she could get away with it.  The second video clip was of a craps dealer  pocketing  chips at opportune moments after collecting  lost player bets.  Up until that point, the dealer had a clean record with nearly 30 years in the industry. He was caught with about $1400 in chips in his pocket, and odds are he stole quite a bit of money over the span of his career.

As far as player cheats and thieves, two of most memorable clips involved a grab and dash and a pickpocket.  The grab and dash unquestionably could have been on World’s Dumbest Criminals.  A man wearing a bright orange cap stood behind a table watching two ladies play blackjack .  Suddenly he snatched about $1000 in chips from the blackjack table and sprinted out the front entrance. The nearly fluorescent color of his cap made it  easy for surveillance to track him as he was running in the parking lot.   There obviously wasn’t much planning to this crime because in addition to wearing a very conspicuous cap, he parked very far out.  The real kicker was his speedy getaway vehicle – a huge rig.  He was apprehended before he could start the engine.

The highlight of the session and the winner of the Golden Dome Award for best overall video clip was the nabbing of a 58 year old pickpocket by a surveillance director.  After observing an older lady standing close to and leaning suspiciously into another gambler, the surveillance director went down to the casino floor to get a closer look.  Dressed as an average Joe with a beer in hand, the surveillance director sat down near the suspect and acted tipsy as he played a slot machine.  Sure enough, the lady moved toward him.  She stood close to him and then pointed at his slot machine display, making some comments. That’s when she made the lift.  She was very slick in her move.  It was not caught by the cameras, but after she walked away the surveillance director checked his jacket pocket.  He had not felt the pickpocket, but the money in his jacket was gone.  He calmly detained the lady on the casino floor.  As they waited for casino security, she offered the money back in hopes of getting off,  but the surveillance director was not about to cut a deal.  From detecting the suspicious behavior to going undercover to making the take down, he went all out to get the job done.

After the Golden Dome Awards I had some time to check out the surveillance software and technology  on display at the Expo.  I was extremely impressed by  the latest surveillance camera systems.  In terms of  software and technology that can help casinos evaluate the play of advantage players and cheaters, I agreed with the consensus among WGPC attendees that these tools are only as good as the human operator. Without a doubt, the surveillance cameras of today are invaluable in tracking any person of interest throughout a casino’s property, with the capability to pan in and out at multiple angles with very high resolution.  But as far as analyzing play, picking up on potential criminal activity and recognizing players who are in “the book”, there’s no substitute for  well trained, knowledgeable surveillance people.

Since I had to catch a flight home I missed out on the conference’s last event, the Innovation Forum, which was an open discussion for attendees and exhibitors on how surveillance can increase its value, especially in the midst of a challenging economy.  One of the recurring themes in my conversations with WGPC attendees is how surveillance often has to justify its value to casino management.  It’s human nature to place value on things that can be easily measured, like revenue, and minimize  the value of preventive measures whose benefits may not be as apparent in the short term.  Recognizing the significant long term payoff of a well trained surveillance staff rather than viewing surveillance solely as an expense is integral to a casino’s success. Smart companies,  for example, know that encouraging and subsidizing healthy lifestyles for their employees (such as paying for gym memberships) is a very cost effective approach that will increase productivity and decrease healthcare costs in the long run.   It may be difficult to assign an exact dollar amount to what surveillance and game protection saves casinos in terms of internal theft, cheaters, scam artists, and advantage players, but it is undoubtedly a significant amount.  And how can you put a dollar figure on the contribution surveillance makes to maintaining a safe and enjoyable casino environment that gamblers are willing to patron?

Big picture thinking can also benefit casino management in terms of operations.  Practices such as shallow penetration, no mid-shoe entry and bad rules such as 6/5 blackjack discourage, rather than enourage players to gamble.  I know some of you may now be reminded that I am a former professional blackjack player.  True, card counters do seek  the best rules and ideal conditions.  It’s also true that casinos make money through betting volume, the overwhelming majority of which is generated by gamblers who have no chance to beat the house over the long run. I do think the surveillance and game protection community has some culpability in how the fear of card counting largely dictates casino operations.  When it comes down to it, the business model for casinos  is very simple.  More player action equals more revenue and profit.  One of the things I love most about blackjack is that its a game based on mathematics.  The same mathematics that can work in a card counter’s favor are the same mathematics that work in the casinos’ favor across all games.  There is always an optimal strategy to maximizing expected win and revenue.

Knowledge of course is the key, whether you’re a blackjack player, surveillance director or casino manager.   The people I met at the WGPC came to the conference with an open mind and a willingness to learn, just as I did. I had a great time and it was a very educational experience.  Kudos to Willy Allison and Jo Allison for organizing a very informative and engaging conference with an impressive group of attendees.  I came away with a new found respect and admiration for the surveillance and game protection industry.  To top it all off, I even left Vegas with  an open invitation for a future tour of a casino surveillance room.

World Game Protection Conference Recap: Day 2

World Game Protection Conference Recap: Day 1

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Day 2 of the WGPC began with  keynote sessions on unconventional means of beating the casinos.  Kicking off the day with High-Tech Casino Crime was Richard Martin and John Anderson from London’s Metropolitan Police Clubs & Vice.  When I think of gaming in the UK, the first thing that comes to mind is the trio of eastern Europeans who used a mobile phone equipped with a laser scanner and a microcomputer to win more than $2 million at roulette in 2004.   They won the $2 million in a matter of just two evenings at the Ritz Casino in London.  The roulette players were arrested but surprisingly, later released and allowed to keep their winnings because at the time they had not violated UK law since the scanner did not interfere with the ball or the wheel. Since 2005, when restrictions on club membership in the UK were lifted and casinos were allowed to stay open 24 hours, there has been a rise in organized gaming fraud as criminals  have much more access and opportunity than ever before.

In the second keynote session, Kevin Kelly, who is a surveillance shift manager and training manager at Borgata in Atlantic City, spoke about hole card play.  This approach is based on knowledge of the dealer’s hole card.  Most hole carders obtain this information legally when the dealer unknowingly exposes the card.  Cheaters gain hole card information by warping or marking the cards, or by colluding with the dealer.  Knowledge of the dealer’s hole card combined with the correct playing strategy makes for a very powerful game with a player advantage of up to 13%.  Hole carders have well trained eyes and with a weak dealer can catch the card in a split second.  Kelly is among those who has observed an increase in hole card play in recent years. I don’t find this surprising given that more casinos are now offering hand held single-deck games which are much more vulnerable to hole card exposure than shoe games.  Most of these new single-deck games only pay 6/5 on blackjack which is murder on blackjack players, including card counters, but for hole card players it is a price worth paying given the potential of a double digit edge over the house.

After the hole card session, Dave and I took part in a Q & A on team play which was moderated by Willy Allison.  After starting with a handful of his own questions, Allison opened it up to the audience.  Members of the game protection industry finally had their chance to ask  their burning questions about the MIT Blackjack Team.  A few examples of the questions asked were, “Which Vegas casino did you most consider a candy store?”  and “What was the most important factor to your team’s success?”  Everyone seemed to  enjoy the interactive format, and at the end of the session a lucky member of the audience received a giveaway.  Appropriately enough, it was a brand new iPhone with the card counting app installed.

Throughout the conference I had the opportunity to meet a lot of  casino surveillance people.  Many of whom have  known my face and name for years which made for interesting conversation.  Alicia Barney, the surveillance director of  Seven Feathers Casino in Oregon told me, “Your face is one of the first faces I had to learn.”  Ted Whiting, the director of surveillance at Mirage walked up to me as if we were long, lost friends.  When he introduced himself with a big smile, I had been familiar with his name for some time. Now I finally have a face to go with the name.  Everyone I met professed a respect for card counters, and a few surveillance people admitted they missed the the cat and mouse game of the 1990′s.  They reminisced about the challenge of  the good old days of high stakes team play.  During our Q & A  session, one member of the surveillance community even thanked us for our team’s impact on the casino industry.

The first of the afternoon sessions was Theft: Crime Signals for Casinos by Dr. David Givens.  Dr. Givens is an expert on nonverbal communication, and he spoke about how recognizing crucial signs in body language can help spot a criminal before it’s too late. Following Dr. Given’s session was The Tangam Report which was delivered by Max Rubin, gaming consultant and author of Comp City.  Barona Valley Ranch Resort and Casino conducted a study in 2008 on how video analytic software can be used to monitor and protect table games.  The information gained from the software can be used to increase game efficiency and profitability in areas such as comp management.  The keynote sessions concluded with a panel discussion with Ted Whiting, Darrin Hoke & Kevin Kelly.  The panel talked about recent developments in game protection.  Of the topics discussed the one that most caught my interest is comp fraud. From players tricking slot machines into awarding them credit for hours never played to casino employees entering inflated bet action for co-conspirators, comp fraud has risen dramatically in recent years.

The second day of the conference covered a diverse range of game protection topics, only one of which dealt with card counting.  As I spoke with other attendees at the happy hour I realized I had gained a  greater understanding and appreciation for what game protection fully entails.  I was looking forward to the Golden Dome Awards on day 3, when some of the best casino scams caught on surveillance video would be shown.

World Game Protection Conference Recap: Day 3
World Game Protection Conference Recap: Day 1

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A few days ago I returned from the World Game Protection Conference (WGPC).  It was a memorable 3 days. Shortly after arriving in Vegas,  I received some disappointing news from Willy Allison, President of  World Game Protection. Allison had been informed that Dave Irvine and I would not be allowed  on any of the tours of the Caesars surveillance room  being offered to WGPC attendees. Granted, I wouldn’t have learned anything I hadn’t already seen on numerous television shows. Still, it would have been a cool experience for a former advantage player. Apparently, some old sentiments die hard.

The conference’s program kicked off with the Game Protection Master Classes. Four 3-hour classes were offered:

Table Game Cheating: Sal Piacente
Advantage Play: Bill Zender
Poker Cheating: George Joseph
Slot Cheating: Darrin Hoke

I would have loved to have sat in on the cheating classes since I’m not an expert in this area, but given that the Master Classes ran simultaneously I chose Advantage Play, which was taught by Bill Zender. Zender, who was once a card counter himself and a agent for the Nevada Gaming Control Board has more than 30 years of experience in the gaming industry. He is also the former vice president and director of operations at the Aladdin Hotel & Casino. I’ve enjoyed several of his books, Advantage Play for the Casino Executive and his most recent book, Casino-ology.

Zender started with card counting and one of his major points of emphasis was how the gaming industry has an over-inflated perception of the threat  card counters  pose. Zender presented the expected win and player advantage figures for different  blackjack games based on the number of decks, casino rules, and player bet spread.  Zender put the expected win of card counters in context relative to the dynamics of time and motion which significantly impact a casino’s bottom line.  Casinos can raise their table game revenues by maximizing the number of rounds dealt per hour. It’s a very practical and effective approach. More opportunitities for players to bet per hour translates into greater revenue and profit for casinos.

Ironically, the measures employed against card counters such as shallow penetration and no mid-shoe entry are costing casinos revenue.  When dealers are shuffling, casinos aren’t making money.  When players have to wait until a new shoe to play, casinos aren’t making money. Practicing measures twenty-four seven, 365 days a year which target a minuscule percentage of players is counterproductive. Darrin Hoke, the Director of Surveillance at L’Auberge du Lac casino in Lake Charles, LA told me that over the last 4 years, the number of card counters he has backed off is .00006% of the total gamblers that have played at his casino during that period.  That works out to less than 1 in a million gamblers. The fact is very few gamblers even attempt to learn how to play perfect basic strategy, much less card counting.  Of those that do, most aren’t very good because they don’t have the skill, discipline and knowledge of money management to beat the house.

The class had comprehensive coverage of advantage  play, also hitting on shuffle tracking, ace sequencing, card steering, hole card play, and biased roulette wheels. Having some experience with shuffle tracking, ace sequencing and card steering, I found the sections on hole carding and biased roulette wheels particularly interesting. Unlike card counting, the feasibility of these approaches is extremely dealer and casino dependent. The opportunities to employ these methods are uncommon and for the most part require a very high degree of skill. I have been asked many times about advanced play techniques and I plan to cover these approaches in more detail in the near future.  Zender certainly did not disappoint in delivering a very informative class on advantage play.

The conference welcome reception was held in the evening, and the highlight of the night was the WGPC Challenge, a card counting competition for the casino surveillance community.  The challenge was to see who could accurately count down a deck in the fastest time. In the final, Bobby Dauzat from Paragon Casino in Louisiana, claimed victory with a winning time of just under 15 seconds. I was impressed by the enthusiasm and focus of the competitors.  It was apparent they took a lot of pride in their card counting skills. Dave and I filled big  shoes when we presented Dauzat with the trophy.  Last year, Ed Thorp, the father of card counting himself,   presented the trophy.  It was a fitting end to the first day of the conference.

World Game Protection Conference Recap: Day 2
Sleeping With The Enemy: The World Game Protection Conference

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