Atlantic City Surveillance

News!

The Spring 2010 Issue - #9

Internet viewing:

http://www.worldgameprotection.com/archive/

www.oregonsurveillancenetwork.com

Boardwalk View of Snow Covered Garden Pier

History Making Snow Storm ~ December 19th, 2009

Section #1

Section #2

Section #3

World

Contents pg 1

Editor’s Desk by Tony Weiss Press – Change - Rearrange pg 2

National News pg 3

“The Marketing of Surveillance” By Tony Weiss PG. 30

BJ & Poker Download Apps

PG 33

The Cost of Slot Promo Scams By Glenn Novakoff PG34

TCP Card Bending Scam By Dennis Lamond, Rick Pfeifer & Tina Carletti

PG36

Money Generators ~ Who Works for Whom By Russ Schellhas PG39

National News

Exclusive Articles &

Guest Writers

Local Scams

Using Critical Thinking to Protect Casino Games

By Bill Zender

Poker Cheating Devices & Methods

By Tony Weiss, ACSN

The Ivy League Surveillance Professional

By Greg Schaaf

2010 W.P.G. Notes By Bruce E. Band

The Oregon Surveillance Network ~ Q&A

With Alicia Barney

Surveillance and Casino

Math By Robert Hannum

Pg 5.

Pg.

Pg.

29

2010 Issue #9

Pg. 16

130

Pg24

Pg8.

EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE GUEST GUEST GUEST GUEST

ARTICLESARTICLESARTICLESARTICLES

Ask The Professor – Dice Sliding Tells By Kevin Kelly PG41

Combating the Casino Hustling Flea By Frank Hauser PG48

Invisible Subs & Signals

By Tony Weiss PG51

2010 Surveillance SARC Guide By Tony Weiss PG53

PRESSPRESSPRESSPRESS CHANGE CHANGE CHANGE CHANGE RRRREARRANGEEARRANGEEARRANGEEARRANGE

Walk into any gambling establishment across the country and you’ll hear the words press,

change and rearrange coming from the dice pit. The stickperson uses unique rhythmic calls

to create excitement and generate business. This is one of only a few table games

positions where the dealer can add revenue to the bottom line by selling proposition bets.

The industry is now in a similar situation as we are forced to look at the economic business

drivers that have been ignored for so long. It seems that the “can’t miss” development

project has been put on the back burner in almost every jurisdiction. We must all take a

page from the stickperson and figure out ways to create excitement as well as all working

to protect assets. What will your unique call be?What will your unique call be?What will your unique call be?What will your unique call be?

Global surveillance operations are no longer immune to the financial crunch as we hear

whispers of layoffs, budget crunching, inventory control and training/travel expense

reductions. We are looking at areas of the casino business model that were never

considered traditional surveillance. Food and Beverage, table games analysis, casino

accounting methodology, risk management and the clubs are now juggled into the already

busy agendas of a forward thinking progressive surveillance department.

Many of the great information sites such as the World Game Protection Catwalk are on

hiatus due to the need to concentrate on new product and revenue streams. ACSN recently

reached out to Willy Allison regarding the surveillance community. He is excited about the

fantastic showing at WGP and concentrating on creating dynamic new products and

training tools. We talked about everything he has done to allow ACSN to have a global

voice. We agreed to continue to place ACSN on “The Catwalk” as we have in the past. This

is one more example of Willy’s commitment to provide information to our community.

http://www.worldgameprotection.com/archive/http://www.worldgameprotection.com/archive/http://www.worldgameprotection.com/archive/http://www.worldgameprotection.com/archive/

Atlantic City Surveillance News was created to provide information and training to all levels of

casino surveillance. We have grown due to the contributions and support of this great community.

This issue is dedicated to the memory of Harry Elwood, a true surveillance professional!

ACSN Editor’s Desk By tony Weiss

ASCN can be contacted at: surveillance@theborgata.com

CBS News Investigation into Photocopiers Raises Questions in Buffalo

Posted by Emily Rand (CBS original)

On the heels of CBS News chief investigative correspondent Armen Keteyian's investigation into documents stored on digital photocopier hard drives, CBS affiliate WIVB reports that fingers are being pointed in Buffalo, NY.

Two of the four copiers - randomly purchased by CBS News from a used copier warehouse in New Jersey - happened to be from the Buffalo Police Department.

The copiers were loaded with confidential documents, from police reports to lists of wanted sex offenders.

Buffalo City Byron Mayor Brown said he would refrain from commenting on our report until the hard drives we found in the copiers were returned, telling a WIVB reporter, "I think we're gonna wait for the information to get back."

ACSN Question: Does your casino have a copier policy to clear out duplicated information within the hard drive? Can you imagine if player database, executive documents or strategic planning information was left in the copier memory upon the end of the lease?

ACSN National News: Torn from the Headlines

Infosecurity

ATM robberies prompt tech rethink in Thailand

By Robin Hicks | 12 March 2009

Thailand has revamped more than 30,000 automated teller machines (ATMs) to prevent criminal gangs from stealing bank account information amid a spat of thefts in the South East Asian country.

The ATM Business Community in Thailand has admitted that it is struggling to keep pace with the new technology used by criminals to copy bank account information from ATM cards.

The methods used to steel from ATMs include attaching fake keypads, tiny cameras and car readers placed over the machine’s card slot to record a bank card’s magnetic strip and PIN number.

No details of how the machines were being altered have emerged. Special stickers will be affixed to the revamped machines to show that they are safe for use.

A man was arrested earlier this week for allegedly running a syndicate that took more than US$127,000 by attaching skimming devices to ATM machines in the Thai province of Chumphon.

Ex-casino executive on $5m scam charge Melanie Pilling | October 22nd, 2008

A FORMER Jupiters Casino executive has been charged over his alleged involvement in a major food supply scam that allegedly fleeced the casino of more than $5 million.

Police allege William Noel Partridge, 49, a former Conrad Jupiters purchasing officer, and four other men who worked as either casino employees or independent food suppliers, defrauded the casino of $5,083,185 between June, 1993, and August, 2001.

It is alleged the scam involved the use of false food purchase orders and supplier invoices for 'phantom product' that was not delivered to the casino.

Court documents allege a casino storeman raised concerns with Jupiters Casino management in November, 2000, when a pallet of meat invoiced to the casino was not delivered. Computer records also allegedly showed a 'series of similar instances' had occurred and some employees had suspected fraud.

But it was alleged the 'whistleblowers' who had approached management were being victimised for attempting to

investigate the errors. The scam allegedly involved 1975 fraudulent invoices.

Using Critical Thinking to Better Protect our Casino GamesUsing Critical Thinking to Better Protect our Casino GamesUsing Critical Thinking to Better Protect our Casino GamesUsing Critical Thinking to Better Protect our Casino Games

An Exclusive ACSN Surveillance article by Bill Zender

The topic of critical thinking is something that is stressed in Business College. When I went back to school and received my Masters in Business, the process of “critical thinking” as used in the business environment was considered one of the important steps in achieving a competitive business or personal advantage. It’s important that we learn to look at things from different angles before we render an opinion or make a crucial decision. Some situations aren’t always the same as they first appear. This is true even in casino game protection. Sometimes failing to look at the “big picture” will prevent us from seeing the real problem. Sometimes we focus on the symptom of the problem and not the problem itself. And sometimes we try to force the proverbial “round peg into a square hole”, because we are certain that our first impression of a situation is the true problem. Let’s examine several real life situations involving gaming and game protection, and see how the lack of critical thinking affects our ability to solve the true problem. What are the differences between floor operations’ and surveillance’s perception of the threat of card counting?

Operations perspective: The player is beating us for $100,000 in blackjack. He must be a card counter?

Situation: A blackjack player who is not counting, and has virtually no bet spread continues to win. Surveillance has checked the customer’s play, confirmed there is no card counting issues, and based on the casino procedures, can’t find any indication of marked card play, or hole-card play. They give their finding to operations, but operations still backs off the player.

For some reason, executives in operations are fixated on card counting. Any player winning a decent sum in blackjack is always suspected of gaining an undetermined edge through the process of card counting regardless of their bet spread or hand decision characteristics. Years ago, as a casino floor supervisor, I was asked to watch a higher limit blackjack game to determine if the suspected “winning” player was counting cards. After watching several decks, I told the casino shift manager that I didn’t believe the player was counting. To further support my opinion, I explained that the player had made a series of bad betting and hand playing decisions that were contrary to the count of the cards. I thought explaining these betting and

play decisions would help support my opinion that the player wasn’t counting cards; however the shift manager wasn’t satisfied. “How do you know he wasn’t trying to throw us off by making bad plays?” exclaimed the shift manager. Even though I offered evidence that the suspected customer was not counting cards, the shift manager still clung to the possibility he was winning because he was counting. Is the shift manager trying to force the round peg into the square hole?

Another familiar comment from operations is, “I don’t know what he is doing, but he is doing something”. In many cases when a blackjack player is winning an unusual amount of money, floor supervisors immediately assume he has to be up to no good. Players can’t win at the game of blackjack “on the square”, can they? They have no concept of result fluctuation, nor are they willing to believe that the player deserves to win occasionally. I know of a casino where floor operations and surveillance had to come to an agreement as to a minimum “win” threshold for mandatory video review. Floor operations had tested surveillance’s patience. Unless surveillance was prepared to conduct continual video reviews on winning blackjack players, they had to establish some parameters for review. Either that or double the surveillance department’s workforce.

Why do we focus on one specific detail, and have a problem looking at the entire picture?

Surveillance perspective: Based on a recent surveillance flyer, an operator thinks he recognizes a person standing near the crap table as a suspected craps “rail thief”.

Situation: Surveillance is worried that a suspected “rail thief” is working the outside of a crap table waiting to steal $100 checks from a player. They watch the alleged thief standing near the player, and focus on the player’s chips in the rail. When the suspect leaves the casino, one of the operators makes a startling discovery. Upon video review, the black check bettor was observed making illegal “late” bets on the odds and in the field. While surveillance was focusing on a possible $100 theft, the player they were trying to protect cheated the casino for several thousand dollars.

The previously described situation actually happened. One of the strip casinos had recorded some surveillance tape on a suspected rail thief and had a gaming consultant look at the tape to see if he could identify the suspect in question. After watching the tape for several minutes, he inquired whether or not surveillance had been watching the dice player with the black chips strung out along the crap table’s rail. No they hadn’t. “Well, maybe you should” commented the consultant. When surveillance went back to watch the tape again, this time focusing on the craps player, they noted several incidents where the player past posted the field and pass line odds on winning rolls. Why had they missed the obvious? Because all of us have a tendency to channel our attention towards specific actions or details. The flyer indicted that the person in question might be a rail thief so that was everyone’s focus. Self-help books would tell us we need to start thinking “outside the box”, or looking at each situation from different angles regardless of what we have been led to believe about a situation.

The importance of using the word “why” when evaluating a situation

Floor operation and surveillance perspective: A person playing poor basic strategy is nothing but a poor player. Let’s move on to something else.

Situation: For two weeks surveillance and floor operations have been watching several players consistently win large amounts of money on a couple of six deck shoe games. The players’ hand decisions have been quite bizarre to say the least. Because of the wins, the play has been reviewed a number of times from both the floor and surveillance. The consensus; observations indicate the players are poor basic strategy players.

The concept of knowing basic strategy is paramount in the gaming industry. Floor supervisors and managers who watch blackjack have to know it. Surveillance personnel have to know it. Blackjack basic strategy is the foundation of understanding and protecting the game of blackjack. Without knowledge of basic strategy no one would be able to determine if a player were counting cards, shuffle tracking, gaining hole-card information, or cheating by marking cards.

One day I received a phone call from a casino manager regarding a recent loss his casino experienced due to a team of hole-card players. He explained that the team played several different dealers over an extended period of time, and beat the casino out of a “large” amount of money. He further went on to explain that the hole-card play occurred on a shoe dealt game. “My floor staff and the surveillance operators all know basic strategy, but it took two weeks before someone on the casino floor snapped to the unusual play” he explained. “Why didn’t anyone catch the play sooner?”

There are two reasons why this situation occurred and the casino lost money to an obvious hole-card play. First, most of us limit our view of hole-card attacks to hand pitch games only. We know what “front loading” is and how it occurs, but how can someone front load a shoe dealt game? Since we harbor the opinion that the shoe game is safe from hole-carding, we rule it out as a possibility. If we see a bad hand decision in the shoe game we don’t get suspicious. It’s because the player doesn’t know basic strategy and is a “poor” player.

Second, we teach our employees basic strategy, and test them on a regular basis, isn’t that enough? Teaching people basic strategy and teaching them why they need to learn it doesn’t necessarily go hand in hand in our industry. They need to know the “why”, and they also need to examine situations where bad hand strategy plays can indicate there is a game protection problem. In this casino’s case, they armed their people with the tools to do the job, the problem was they didn’t teach them the proper way to use them.

Thinking “outside the box”

In my game protection seminars I tell everyone that the most important tool we can use to protect the casino games is the word “why”. Why did the blackjack player take insurance when wagering a large bet? Why did the roulette player make a series of late bets at the top of the layout after the dealer waved off? Why did the blackjack player stand on a hand total of “12” while the dealer displayed an up-card of “9”? Using the “why” word, we force ourselves to look at the situation one more time. This will help steer us away from the obvious, “dumb play” or “stupid player” toward a possible problem, “past poster” or “card counter” or “hole-card player”.

By using “why”, we start to think outside of the box. It leads to the use of critical thinking to examine a problem so that we don’t focus on the symptom of the problem, or worse, ignore the problem entirely. By re-directing our thought process, whether we are in surveillance or floor operations, we will become better at what we do, and provide the best game protection coverage that our organization deserves.

ACSN thanks Bill for taking the time to write this article. He is a friend and supporter of ACSN as well as sharing of critical casino surveillance information. His exper tise and industry knowledge are unparalleled.

Bill Zender, a former Nevada Gaming Control Agent, worked his way up through the casino industry start ing as a blackjack dealer in 1976, finally advancing to vice president/director of casino operations and owner of the Aladdin Hotel and Casino in the 1990's. During his vast job experiences over the last twenty seven Bill has ow ned and operated his own dealing school, taught a course on casino m anagement at University of Nevada, Reno and Las Veg as and Community College of Southern Nevada, given numerou s game protection seminars to both gaming companies and law enforcement agencies, written four books on bla ckjack and Asian games, served as an expert witness on gaming in various courts, and had also played blackjack pr ofessionally in the 1980's. Presently Bill is engag ed in gaming consulting relative to game protection issues, and casino operational evaluations and assessment.

The concept for this article is the result of a very interesting proposal made by one of the world’s richest men. Warren Buffet met thisBusiness for a town hall meeting on the state of the economy. As he the Ivy League students he knowingly has lost a total of ten billion dollars Hathaway stock for the 2009 calendar year. With that in mind, he made an amazing oall of the attendees. His offer was to give $100,000 to anyone for 10% of their potential future earnings. What he was saying was that he believed in thethe economy would turn for the better. Warren Buffet was willing to put his money where his mouth was.

ACSN: How do you place a value on the potential of a surveillance associate?

Greg Schaaf: Selecting the appropriate candidate is a critical challenge and decision for all surveillance managers. Each new surveillance associate requires extensive training and mentoring. A proper candidate requires the desire to make casino surveillance a career choice/path (to have associates that are punching the clocproductive to any operation). They must possess the ability to learnhopefully “outside the box”, andenvironment. The capability of “leaving their egos at the door” is essential.

Surveillance associates are the backshould be developed to take on any challenges or opportunities that are presented to them. It is the manager/director’s responsibility to ensure their success. Each operation is a complex myriad of activities and events; surveillance associates are invaluable to the productsuccess of an operation. Each associate is a moving part which must be effective to operate at peak levels. The goal is to avoid the status quo and take advantage of each opportunity by exceeding expectations. Surveillance associatesevolve our operations.

ACSN Q&A

The concept for this article is the result of a very interesting proposal made by one of the world’s richest men. Warren Buffet met this past November with the Columbia School of Business for a town hall meeting on the state of the economy. As he sat and addressed all of

y League students he knowingly has lost a total of ten billion dollars Hathaway stock for the 2009 calendar year. With that in mind, he made an amazing oall of the attendees. His offer was to give $100,000 to anyone for 10% of their potential future earnings. What he was saying was that he believed in the American business model knowing the economy would turn for the better. Warren Buffet was willing to put his money where his

How do you place a value on the potential of a surveillance associate?

Selecting the appropriate candidate is a critical challenge and decision for all surveillance managers. Each new surveillance associate requires extensive training and

candidate requires the desire to make casino surveillance a career hoice/path (to have associates that are punching the clock and checking their watch is

They must possess the ability to learn, think creativelyand be part of a high energy, sometimes stressful and creative work

environment. The capability of “leaving their egos at the door” is essential.

Surveillance associates are the back-bone of each surveillance operation. Each new associate d to take on any challenges or opportunities that are presented to them. It is

director’s responsibility to ensure their success. Each operation is a complex myriad of activities and events; surveillance associates are invaluable to the productsuccess of an operation. Each associate is a moving part which must be effective to operate at

The goal is to avoid the status quo and take advantage of each opportunity by Surveillance associates are the future of surveillance.

The Potential of an Iv

Surveillance Professional By Greg Schaaf, Surveillance Director

ACSN Q&A

The concept for this article is the result of a very interesting proposal made by one of the November with the Columbia School of

sat and addressed all of y League students he knowingly has lost a total of ten billion dollars in Berkshire

Hathaway stock for the 2009 calendar year. With that in mind, he made an amazing offer to all of the attendees. His offer was to give $100,000 to anyone for 10% of their potential future

American business model knowing the economy would turn for the better. Warren Buffet was willing to put his money where his

How do you place a value on the potential of a surveillance associate?

Selecting the appropriate candidate is a critical challenge and decision for all surveillance managers. Each new surveillance associate requires extensive training and

candidate requires the desire to make casino surveillance a career watch is counter-

creatively on their own be part of a high energy, sometimes stressful and creative work

bone of each surveillance operation. Each new associate d to take on any challenges or opportunities that are presented to them. It is

director’s responsibility to ensure their success. Each operation is a complex myriad of activities and events; surveillance associates are invaluable to the productivity and success of an operation. Each associate is a moving part which must be effective to operate at

The goal is to avoid the status quo and take advantage of each opportunity by are the future of surveillance. We need them to

The Potential of an Ivy League

Surveillance Professional By Greg Schaaf, Surveillance Director

Borgata Hotel Casino & Spa

ACSN: What should a director expect from a fully developed professional?

GS: A qualified surveillance professional is invaluable to any operation. This is a title that is not easily obtained; the development process is long and challenging. As a professional, you require experiences, training, mentoring and time to develop the proper foundation to excel in today’s ever-changing gaming environment where the expectations and challenges have grown at an accelerated rate; a surveillance professional must be capable of adapting to change, be a creative thinker and possess the ability to utilize all the tools provided. With the advancement of technology, we have the opportunity to enhance our productivity through digital recording; interfaces, software systems and property tracking systems (such as ACSC, Table Touch, etc.) which provides unlimited information.

A surveillance professional possesses the ability to look well beyond the monitor to develop investigations, audits and reports (such as false ratings, comp scams, low hold percentage, and associate thefts, etc.); they should be creative in their thought process and communicate daily with all the “experts” from each department. They need to possess the ability to professionally communicate with all levels of management, the regulators, the surveillance community and law enforcement. A professional can remove the “glass ceilings” many place on themselves and continue to develop surveillance as an incredible tool for any operation.

ACSN: Is it possible to set future expectations that are backed with tangible results to be

tracked and monitored?

GS: Absolutely, we work in an environment where productivity is critical. As the industry evolves, so shall surveillance. As the technology improves so does the capabilities of each surveillance operation. Enhancing professional relationships/communication with each of the gaming related management representatives will result in additional requests and request for involvement of problem solving in each area. As the gaming complexes are multi-faceted, the only way a professional surveillance operation can succeed is by ownership and advanced involvement by each associate.

It is the director’s responsibility to guage the product being produced and distributed by the operation. Each log, report, investigation and audit should be evaluated, tracked and monitored. Through daily evaluations, management can gauge the direction of training, coaching and counseling needed. Through the development of high minimum operational standards and a positive operational philosophy the foundation for success is established. With such a foundation, the identification of tangible results and setting future expectations can easily be developed.

ACSN: Do you have or should a surveillance director place a specific monetary goal on the

productivity of the associate?

GS: A qualified surveillance associate can/should save the company as least twice their salary. Today’s surveillance operations have become quite diverse. In an attempt to meet the challenges of an everchanging gaming environment, surveillance associates must develop well beyond game protection. We all must assume responsibility for asset protection, finance, accounting, auditing, risk management, security, external/internal threats and assisting each department on property. Through the aggressive assistance of surveillance, the property needs to develop an “aura” that a safe, positive and professional environment exists for all the property’s guests and associates. Each associate must work diligently to provide the appropriate coverage and documentation to assist in all legal matters, asset protection, regulatory compliance, the integrity of the gaming activities and the prevention of illegal activity.

ACSN: Should monetary goals always be the standard measuring stick for an associate or

should the overall contribution to the company be factored as well?

GS: Both tangible and non-tangible monetary goals should be established for each surveillance operation and personnel. That is how an operation evolves. Establishing tangible goals such as gaming infractions, cage variations/recovery, internal/external theft, etc. assists in establishing the standards of the operation. Non-tangible goals such as risk management savings, the effect on the table game hold, customer service (both internal/external customers) & the assistance in customer intent to return are all factors that are difficult to measure, but have a positive effect on the entire operation. However, the overall contribution of the surveillance professional is something that should not be ignored.

If surveillance professionals develop a positive professional work ethic; if they understand the standards & operational philosophy of the department; if they can be creative thinkers; if they can work as team players; if they attempt to develop their skills to their fullest capabilities; if they develop confidence in their abilities and attempt to exceed expectations they will be successful. Uncovering scams, limiting vulnerabilities and arresting the”bad guys” is a critical element to the success of any surveillance operation; but times have changed, and each operation requires much more. Surveillance has evolved into a multi-faceted operation that has multiple moving parts. A quality surveillance professional can be highly productive and effective without uncovering the big money error or scam.

ACSN: According to a recent Harvard Business Review article, research shows a full 37% of

employee activity is not aligned with overall business strategy. What are your thoughts

regarding sharing critical business information so the associate is fully aware of the

company goals?

GS: Understanding the business model is essential to the development of an effective surveillance operation. Each department and associate should understand the business model to

better understand the role of the department in the property’s success. Working with executive management; risk assessments should be constantly evaluated and operations should be modified to minimize the existing Risks (risks such as increased litigation, internal/external theft, criminal activity, regulatory concerns, vulnerabilities and/or gaming related issues). Surveillance has the unique ability to be an unbiased third party with access to extensive video and data. Looking beyond the monitor, surveillance can respond with in-depth research, investigations and reports on any/all critical areas. Surveillance has the capability to provide executive management with the appropriate information to assist them in making the proper business decision.

With a deeper understanding of the business model’ an environment is created where each associate assumes ownership of the operation. As an active participant in the attempt to achieve the goals of the company, an enhanced work ethic takes place as each associate attempts to exceed the expectations of management.

ACSN: Please give your thoughts regarding creative surveillance knowing much of the work

is mandated and repetitive taking up much of the worker’s valuable time?

GS: Surveillance is not a field for everyone, but if you possess a passion for this career choice, the opportunities are unlimited. You must look at all the regulatory and jurisdictional requirements as your minimum standards and strive to excel with your own growth and development. If each associate develops ownership into the operation, everyone can find their “niche” where they can excel. With a positive professional work environment where productivity is critical and personal growth is encouraged, each day can be rewarding.

A successful operation develops a diverse group of professionals that possesses a wide variety of expertise. Each associate can utilize their expertise to train and assist their co-workers. With associates taking ownership in a variety of areas (such as finance, table games, risk management, asset protection, security, slots and F&B), the productivity of the department enhances. Through ownership and the feeling that each associate is recognized for their contributions to the success of the department; the potential of the department is unlimited.

ACSN: Who fits the definition of an Ivey League Surveillance Professional more, the

associate that cracks a big case a few times a year or the balanced solid performer that

always can be counted on as a steady team contributor?

GS: The greatest asset to a surveillance operation or the Ivy League Surveillance Professional is the creative thinker. If you build a solid foundation, through developing a strong grasp of the entire gaming operation and how each department is intertwined with one another’ the groundwork for success has been laid out. If an associate is positive, professional, creative and a team player’ success will follow. Creating the proper work environment for each associate to succeed develops the opportunity for each associate to “crack the big case” or develop a new program that will benefit the operation/property.

An environment needs to be developed where associates can fail and learn without negative repercussions. Through proper coaching and counseling sessions, professionals can assume ownership in the operation and take projects to an advanced level.

We are all faced with the un-daunting task of maintaining the integrity and limiting the risks & vulnerabilities of multi-million/billion dollar properties. It takes innovative experienced professionals to attempt to stay ahead of the curve. Developing creative, high energy thinkers and doers is essential. The best ideas in surveillance come from the front lines.

ACSN: Is it possible that the Ivy League Surveillance Professional will request constant

performance evaluations to enhance their productivity or do you have to have metric based

productivity measurements?

GS: Open communication, with the understanding egos cannot come into play’ to me is the best method of development for Surveillance Professionals. Department and personal goals & objectives are critical for each associate’s development as well as a quality evaluation tool. Yearly evaluations are a great opportunity for both the professional and the director to communicate regarding performance, development and opportunities. However, there should be no surprises. To successfully develop as a surveillance professional communication should take place daily. Debating and sharing ideas and theories can only enhance any final objective or product.

Through the development of a solid department operational philosophy, constant risk assessments and ownership in the product/operation, each professional will have a clear understanding of the departments and their individual goals. With such a clear understanding, the professional will require more guidance and direction than constant performance & metric based evaluations.

With any questions, comments and/or concerns. Please feel free to contact:

Greg Schaaf

Director Of Surveillance

BORGATA HOTEL CASINO & SPA

1 Borgata Way I Atlantic City NJ 08401

p.609.317.7586 I c. 609.839.5298

gregschaaf@theborgata.com

For the past four years, I have heard from everyone who has attended how great the "WORLD GAME PROTECTION CONFERENCE" (WGPC) is to attend. They told me that it is the conference that every surveillance, security, and regulatory professional should attend. During my thirty years as a regulator for the New Jersey Casino Control Commission, I have attended my share of gaming related conferences. For the most part, they are a great place to renew acquaintances, see new products, and see a few presentations, but usually very little is included about games protection. Since New Jersey has had a freeze on attending conferences due to the budget, I never had an opportunity to attend the WGPC. Now that I have retired from the state and have started working for a software company running their casino surveillance/security solutions department my chance to attend the conference was now open. Our company 21st Century Systems Inc. (21CSI) looked at this conference to make new acquaintances, talk about our products, with everyone in our target market in attendance. The program that WGPC Founder/President Willy Allison had put together looked extremely interesting, but with my past conference experience I was skeptical at best, still I was going with an open mind.

I arrived at Caesars Palace, Las Vegas on Saturday, February 20th, 2010 the day before the WGPC was scheduled to start. Sunday, I checked into the conference. The day started with tours of the new Aria Resort and Casino's surveillance room, which, being brand new was interesting to see the design and equipment they were using. The conference kicked off with Master Game Protection Classes. There were four topics being presented, with three-fifty minute sessions in each topic. The instructors were Sal Piacente, who covered table game cheating, Bill Zender, who covered advantage play, George Joseph, who covered poker cheating, and Darrin Hoke, who covered electronic games. I attended the three sessions presented by Sal Piacente on table games cheating. The sessions were excellent, presentation was great and his depth of knowledge on the subject was fascinating, however I must admit that it did worry me a little bit that Sal used to deal in my jurisdiction!

The day ended with the welcome reception, which was a great opportunity to network and make new acquaintances. The reception included a speed networking session, which was great as it forced everyone to become acquainted with each other. The day ended with the 5th annual WGPC BJ CHALLENGE, which is a contest to see which contestant can count down a deck of cards the fastest.

The second day started with a nice breakfast vendors, see their new products as well aprogram started with Tim Gard, who provided us with a great deal of humor and explained how humor can be one of your most useful tools as a leader dealing with the everyday challenges of today's workplace. It was a great way to start the day.

The next presentation was by the keynote speaker. Kevin Mitnick, who is known as the womost famous "former" hacker. He currently is a bestselling author and IT consultant. His presentation was on "The Art of Intrusion". His presentation was eye opening; however, it made me not want to ever use my computer again. His presentation providexplanations of how hacking is accomplished as well as defenses against them. The afternoon started with a presentation from the "Ultimate Card Shark", Darwin Ortiz. He demonstrated what crooked gamblers are doing today. His presentation was foLie Guy", whose presentation how to spot a liar and how to get the truth. The second day finished with a happy hour, which gave you another great opportunity for networking.

The third day's presentation started with the innoventitled, "Employee Theft - What we're doing to stop the bleeding". Employee theft according to recent survey by fraud prevention service CIFAS, the number of thefts and deceptions in the workplace increased by 69% in tforum was hosted by Willy Allison and Jessie Beaudin. Presentations were given by James Taylor, Special Agent, Nevada Gaming Control Board, Jessie Beaudin, Senior Director of Surveillance, Hard Rock Hotel & Casino, NV, Darrin Hoke, Director of Surveillance, L'Auberge Du Lac, LA, Ray Patterson, Executive Director, Yocha Dehe Wintun Nation TGA, CA, Steven Allensworth, Director of Surveillance, Muckleshoot Gaming Commission, WA, and John Ervin, Assistant General Manager, Bordertown Casino, OK. This forum opened up a great exchange amongst the attendees and presenters.

The conference ended with the Golden Dome Awards. These are the best scams caught on tape. There are three categories, Best Table GBest Theft Takedowns. At the end, the winners of the three categories are voted on by attendees for the best takedown of the year. The videos were great and all the entries deserved an award. I think what surprised the best gaming conference I have attended in my 30 years in the industry. I made over a hundred new contacts, with people that were willing to help each other with their line of work. The conference drew about 250 attendees, with about two thirds being from Indian Gaming.

d with a nice breakfast which gave you an opportunity to visit with the vendors, see their new products as well as meet and speak with those in attendance. The program started with Tim Gard, who provided us with a great deal of humor and explained how humor can be one of your most useful tools as a leader dealing with the everyday challenges of

reat way to start the day.

the keynote speaker. Kevin Mitnick, who is known as the womost famous "former" hacker. He currently is a bestselling author and IT consultant. His presentation was on "The Art of Intrusion". His presentation was eye opening; however, it made me not want to ever use my computer again. His presentation providexplanations of how hacking is accomplished as well as defenses against them. The afternoon started with a presentation from the "Ultimate Card Shark", Darwin Ortiz. He demonstrated what crooked gamblers are doing today. His presentation was followed by Stan Walters, "The Lie Guy", whose presentation how to spot a liar and how to get the truth. The second day finished with a happy hour, which gave you another great opportunity for networking.

The third day's presentation started with the innovation forum. This year's subject was What we're doing to stop the bleeding". Employee theft according

to recent survey by fraud prevention service CIFAS, the number of thefts and deceptions in the workplace increased by 69% in the first half of 2009 compared with the last half of 2008. The forum was hosted by Willy Allison and Jessie Beaudin. Presentations were given by James Taylor, Special Agent, Nevada Gaming Control Board, Jessie Beaudin, Senior Director of

Rock Hotel & Casino, NV, Darrin Hoke, Director of Surveillance, L'Auberge Du Lac, LA, Ray Patterson, Executive Director, Yocha Dehe Wintun Nation TGA, CA, Steven Allensworth, Director of Surveillance, Muckleshoot Gaming Commission, WA,

istant General Manager, Bordertown Casino, OK. This forum opened up a great exchange amongst the attendees and presenters.

The conference ended with the Golden Dome Awards. These are the best scams caught on tape. There are three categories, Best Table Games Takedowns, Best Slot Takedowns, and Best Theft Takedowns. At the end, the winners of the three categories are voted on by attendees for the best takedown of the year. The videos were great and all the entries deserved an award. I think what surprised me the most is how much I enjoyed this conference. It was the best gaming conference I have attended in my 30 years in the industry. I made over a hundred new contacts, with people that were willing to help each other with their line of work.

e drew about 250 attendees, with about two thirds being from Indian Gaming.

which gave you an opportunity to visit with the and speak with those in attendance. The

program started with Tim Gard, who provided us with a great deal of humor and explained how humor can be one of your most useful tools as a leader dealing with the everyday challenges of

the keynote speaker. Kevin Mitnick, who is known as the world's most famous "former" hacker. He currently is a bestselling author and IT consultant. His presentation was on "The Art of Intrusion". His presentation was eye opening; however, it made me not want to ever use my computer again. His presentation provided you with explanations of how hacking is accomplished as well as defenses against them. The afternoon started with a presentation from the "Ultimate Card Shark", Darwin Ortiz. He demonstrated

llowed by Stan Walters, "The Lie Guy", whose presentation how to spot a liar and how to get the truth. The second day finished with a happy hour, which gave you another great opportunity for networking.

ation forum. This year's subject was What we're doing to stop the bleeding". Employee theft according

to recent survey by fraud prevention service CIFAS, the number of thefts and deceptions in the he first half of 2009 compared with the last half of 2008. The

forum was hosted by Willy Allison and Jessie Beaudin. Presentations were given by James Taylor, Special Agent, Nevada Gaming Control Board, Jessie Beaudin, Senior Director of

Rock Hotel & Casino, NV, Darrin Hoke, Director of Surveillance, L'Auberge Du Lac, LA, Ray Patterson, Executive Director, Yocha Dehe Wintun Nation TGA, CA, Steven Allensworth, Director of Surveillance, Muckleshoot Gaming Commission, WA,

istant General Manager, Bordertown Casino, OK. This forum opened up

The conference ended with the Golden Dome Awards. These are the best scams caught on ames Takedowns, Best Slot Takedowns, and

Best Theft Takedowns. At the end, the winners of the three categories are voted on by attendees for the best takedown of the year. The videos were great and all the entries deserved

me the most is how much I enjoyed this conference. It was the best gaming conference I have attended in my 30 years in the industry. I made over a hundred new contacts, with people that were willing to help each other with their line of work.

e drew about 250 attendees, with about two thirds being from Indian Gaming.

As a vendor, this conference opened the door with new contacts and leads that I could not have gotten anywhere else. Attending this conference made me decide that I need to be attending this event every year. Even though I have been in this industry for a long time, my company is new to the gaming industry. This event allowed us to explain what we do for the casino industry and how we can help casinos save money. Willy Allison is doing something special here that should not be missed by anyone interested in game protection. Even in these times of tight budgets, this is an event that should not fall to the budget knife. There is not anywhere else that you can get the information and contacts that will allow you to keep your department in the elite group of surveillance/security professionals.

CASINO SURVEILLACE OPERATION IDEAS A Q&A with Alicia Barney of Oregon Surveillance Network

Leonardo De Vinci placed pen to paper and transferred a thought that was so ahead of its time that it would take centuries to become reality. The original drawings of De Vinci's flying machine are considered among the greatest early mechanical drawings. The idea eventually changed the way transportation and commerce is done from all points of the globe. A simple thought and open mind is all you need to transpose an idea and make it reality.

By�Tony�Weiss�and�RakeshBy�Tony�Weiss�and�RakeshBy�Tony�Weiss�and�RakeshBy�Tony�Weiss�and�Rakesh����Islania�for�ACSNIslania�for�ACSNIslania�for�ACSNIslania�for�ACSN����

Atlantic City Surveillance News is also looking for the casino surveillance ideas that have helped to change our industry. One of the best new concepts to come from the great minds of surveillance professionals across the United States came from Oregon. The Oregon Surveillance Network is a groundbreaking surveillance portal where you can sign in and get the latest scams, advantage players, casino surveillance writings and happenings. To demonstrate how impressive the site and concept really is let’s look back at our gaming and information collecting history. Las Vegas, known simply as the Mecca of gambling, began legalized gambling in 1931. Some of the great surveillance minds have operated in Vegas from the early days on the strip up until today where mega casino operators have vice presidents of surveillance setting up operations all over the world. Atlantic City comes next in 1978 followed by some 30 years of tremendous growth and financial windfall. Many of the surveillance concepts and gambling regulations from Atlantic City would become the standard for Native American Indian casinos and upstart new jurisdictions. Much of the old guard surveillance community relied heavily on a small network of intelligence gathering. Subscription-based database information has been around for decades. The end user is given access to information as well as monthly updates for a fee. The system started out with huge volumes of cheating information contained within books and has now graduated to controlled internet based sites. In 1994 the first Native American casinos in Oregon opened. With all of the amazing gambling history and surveillance talent, it is remarkable that Atlantic City Surveillance News found one of the brightest new operational concepts by noting an up and coming Northwest surveillance community understood the need for a communication portal. One of the best features of the Oregon Surveillance Network is there is no subscription fee. It is a free network where any member can get up to date with the latest BOLO’s and alerts from Department of Justice, Treasury, FBI, Secret Service and other State agencies. The user interface is easy to navigate for even new users.

*Photo blocked for identity protection

The entries on each page are very detailed and contain just the important information. The network is not just limited to this alone. It can be used to track Blackjack, watch players for count, skill and even suspicious play. Also included are video clips of different scams and thefts that occurred at various casinos.

The Oregon Surveillance Network can also be used as a training tool as it contains video clips of thefts and scams that occurred in various casinos. There is a section for Basic strategy and Speed drills to learn or brush up. There are links to the Atlantic City Surveillance News (ACSN) as well as the Louisiana Casino Surveillance Network news letter “The Crows Nest”.

Let’s find out how the portal became reality. The Oregon Surveillance Network conception was the brainchild of Jeff Murphy who has a vast amount of multi-jurisdictional surveillance experience. Jeff details the original thoughts behind OSN.

Jeff Murphy: “OSN began as a facial recognition program for a fledgling casino in Oregon. I had been the Advantage Team Coordinator at Foxwoods and had created a player database. Foxwoods was a beta testing site for Biometrica and since they utilized my database to assist their product and I left all my training material for the surveillance department, I was allowed to take my database with me to Oregon and my first director’s gig. Jason Rogers came to work with me as a Surveillance Room Manager and I assigned him the project to integrate my material into a useful program designed specifically for the Mill Casino. At the same time, Griffin was offering their services at a price we simply could not afford at our small operation, so we thought outside the box and made our program web-based. Our hope was to involve other casinos and jurisdictions (dealing with the same issues and hardships we were) to the degree we wouldn’t need any other agencies selling us surveillance information as we’d be creating our own. Our efforts were brought and shared at an OSN meeting as the only way to continue to grow the database was to actively continue submissions or risk the initial data being rendered useless years later. OSN supported the efforts, the eight original Oregon Casinos became involved and the Network took over the cost. I become the marketing guy and Jason became the technical wizard/mastermind of the website now called the Oregon Surveillance Network. Needless to say, we both could have made a ton of money from the success but the initial thought was “supported by casino people in support of casino people without cost” and it stuck. We did a lot of work but it was risky for an organization “OSN” to support such a program as the motto toward sharing information was “cover thy own ass and to hell with everyone else” or “I don’t want the liability”. Dealing with an organization was not all roses though as “our idea” went from Jason and mine to being the entire groups. Naturally there were egos and hurt feelings and such but there have never been regrets. The whole premise of the program from the very beginning was that it was never about individuals; it was about everyone becoming involved. I am proud of what OSN became and all those that continue to provide to the site and make it a success, an amazing tools and an industry difference maker.”

Our exclusive Q&A begins with Alicia Barney, Director of Surveillance at the Seven

Feathers Hotel & Casino Resort who was gracious enough to take time to express her passion for both the industry as well as the Oregon Surveillance Network. She is now the administrator and keeper of the flame with regard to all of the work that is needed to keep the portal up to date. The World Game Protection Conference knows all about Alicia's talent as she was the first place winner of the inaugural card counting challenge that has become one of the favorites at each year's conference. ACSN: Alicia, what is your current responsibility within OSN and how is the core of the group structured? Alicia Barney (OSN): I took over the website from Jason Rogers in May of 2008 and have maintained it since that time out of Seven Feathers Casino Resort where I work for the Cow Creek Gaming & Regulatory Commission. To give you a little

background, the Oregon Surveillance Network consists of directors/managers of the nine Oregon tribes. We meet on a bi-monthly basis or as needed. The OSN reports to the Oregon Association of Indian Gaming Commissioners which consists of the Executive Directors/Tribal Gaming Commissioners of the nine Oregon Tribes. A majority of the surveillance departments report directly to the tribal gaming commissions thus the natural order that we as a group would report to the OAIGC. It is with their support that we have continued this endeavor. ACSN: How do you pick and choose who is allowed to gain access to the site? OSN: Currently we allow only members that are part of surveillance, gaming commissions and various law enforcement agencies. We also allow security professionals as we’ve found that many surveillance and security departments fall under the same umbrella, so to speak. On a case by case basis and by referral only, we have allowed individuals outside of these arenas but it is rarely done and we continue to be pretty selective in our membership due to obvious reasons. ACSN: Knowing that every action has a reaction, how do you handle potential legal issues regarding the content that is posted? OSN: Up to this point we have had no issues legally regarding the website. In the beginning Jason consulted with legal counsel regarding the site and added the disclaimer. We have revisited the disclaimer and the legal ramifications several times through the years but haven’t really changed much and continue to operate with no issue. I believe that the selective membership process along with the verbiage utilized on the site assist in lowering our risk of potential lawsuit. We’ve emphasized that it is an information website only and that it is up to the individual party on how the information is used. When posting information I attempt to not utilize words such as “cheat”, “guilty”, etc. It really depends on where the information originates from. This leads into your question regarding the information verification process. A majority of the information coming in is regarding individuals who are already on the website or comes from trusted individuals who have provided legitimate information in the past. Sometimes I feel like the judge and jury when I get information and choose to not post it to the website for whatever reason. The reasons for not posting can be anything from there clearly just isn’t enough information; any pictures, specific dates, times, details of incident, etc. to someone believing that an individual is someone that it actually isn’t. While I want to get the information out there, I tend to err on the side of caution as I want the information going out to be as accurate and informative as possible. ACSN: OSN site management must be very time consuming. How do you feel about the effort versus reward aspect? OSN: While it can be time consuming, the website has provided me the wonderful opportunity to network throughout the industry. My boundaries have definitely expanded to all parts of the world. Thankfully I have a wonderful staff that supports me thus allowing me to pull some of my time from them. Two of my employees

actually assist with the site in my absence which greatly cuts down on the delay of posting information. Along with a great staff, I have an Executive Director that believes in the purpose and mission of the OSN website, again allowing me the opportunity to invest some of my time into the website. One of the most positive aspects of the website for me is when I receive an email or phone call telling me that the information on the site has assisted them in some way. Another continued reward for me is that the OSN has been able to provide a free informational tool, keeping true to the original vision of the site. ACSN: Alicia, please take a moment to talk about the global scale of OSN by detailing some of the international membership? OSN: We are currently at just under 600 registered members. Over 174 different casinos are represented, 5 of which are outside of the United States, along with 11 state agencies and 1 federal agency. We are continuing to grow steadily. ACSN: How do you feel about the portal using streamline video to show live cheating within the membership community? OSN: To be honest we’re looking at lots of possibilities in going forward with the site. We are hoping to launch a reformatted version of the site very soon. Not only will it have a new look but we’re hoping that it will provide easier navigation and organization of the material. We’ll be implementing a search feature as well as a forum to promote further networking and information sharing. We look forward to continued growth with the site and welcome any suggestions that are sent to us. ACSN: Does the future include reaching past career-minded surveillance and welcoming table games, security, slots and finance professionals to be allowed access to the portal? OSN: For now we will maintain the current process and requirements of access. This is not only the opinion of the current directors of OSN but it is the direction that OAIGC would like us to continue. This possibility may be revisited in the future as more interest is expressed although at this point, beyond some table games individuals, we have not had many inquiries outside of the surveillance/regulatory arena. ACSN: The introduction detailed long established gaming Mecca’s such as Las Vegas. Why wasn’t the surveillance communication portal idea realized prior to OSN? OSN: I won’t begin to guess as to why this hasn’t been successful in the past but Jeff mentioned a couple things in his comments above that I would have to agree with. In my opinion there are two key elements that have the potential to hurt an

organization: money (blessing and curse) and ego. Who gets what, who’s doing what, how much…I think that those kinds of questions will only hinder forward progress and success when it comes to starting or maintaining a portal like this.

ACSN: Atlantic City Surveillance News attempts to close out each Q&A by giving

our interviewee an opportunity to acknowledge or thank someone who has helped them along the way. Is there a group or person(s) that have had an impact on the success of the Oregon Surveillance Network? OSN: The contributions from individuals within the industry have allowed the site to be what it is today. These contributions vary anywhere from the actually submitting information to be posted on the website to individuals like Willy Allison of the World Game Protection Conference. He has been one of our biggest supporters and fans. Information sharing has come a long way. We went from “individuals” fighting the fight on our own to a “community” willing to band together as a global surveillance industry. Yes, the OSN exists because some of us are willing to put our time and effort into maintaining and organizing the information but the site really functions because of the contributions of all.

Oregon Surveillance NetworkOregon Surveillance NetworkOregon Surveillance NetworkOregon Surveillance Network

Alicia Barney, Director of Surveillance,

Seven Feathers Hotel & Casino Resort

ACSN thanks Alicia Barney for taking the time to answer our questions. OSN has a well earned reputation as a global leader in the communication of casino surveillance intelligence gathering. Data mining and resourcing timely information are at the forefront of modern surveillance. The Oregon Surveillance Network has shown that the portal is well worth the effort. Are your assets important? Consider a registration request to OSN if you have not already done so.

By Robert Hannum Professor of Statistics at the University of Denver

Exclusively for ACSN It is well known that casino math is widely used in casino operations to assist in decision-making, but the importance of casino math as it relates to surveillance is less well understood. This article will outline some of the ways in which probability and statistics – the mathematics of casino gaming – can help in the surveillance department.

An Example: The Ludwig Affair A few years ago a roulette player – let’s call him Ludwig – won nearly €1.5 million over the course of a several weeks at a major online casino operating in Europe. Ludwig’s remarkable run began innocently enough – for the first roughly 1,000 coups he was placing a handful of small bets each spin and won and lost much as one would expect. At the end of this period he was down by about €3,000. After taking a one-week break, he returned to the game and continued playing, again betting two to three bets per coup, but now with more erratic and larger bet sizes. For the next roughly 630 spins, his average amount bet per coup was €550. His cumulative net win, measured from his original start of play, fluctuated more during this period (as expected with the increased bet sizes) and though he was ahead at several points – a few times more than €10,000 – his overall profit remained negative most of the time and after spin number 1,636 Ludwig was down more than €10,000. On the next spin he bet €7,500 and won €10,500 to bring his cumulative net win to positive. Up to this point he had played over 1,600 rounds, betting approximately €370,000 in the process, and considering his overall win percentage was less than 0.04%, was essentially back at where he started. The next 1,600 rounds were different. For the following 654 spins of the wheel, Ludwig placed an average of 14 bets totaling €13,475 on each coup. Continuing to play nearly every day, his net win gradually increased. While online casinos do not generally have a surveillance department per se, they do monitor play.1 As his winnings grew, Ludwig’s play warranted increasing attention and when on round 2,291 he broke the €1 million mark in overall winnings, casino management brought in outside consultants, including a private detective and a mathematician, to more closely scrutinize Ludwig. As the casino continued to monitor and the consultants began their investigation, Ludwig continued to play. The number and amount of his bets per round increased to the point where he was routinely placing fifty or more bets on the layout with combined totals per coup in excess of €40,000. On some spins he made more than one hundred different wagers and on several coups he put more than €100,000 at risk. After roughly 3,200 rounds Ludwig was up nearly €1.5 million.

1 One game protection expert explained that like brick and mortar properties, online casinos need to protect the integrity of their games as well as protect their account information and so employ a web security department that is on the lookout for intrusions into their system. In addition, they run statistical analyses on the players in an attempt to find anyone who is winning more than expected.

The data from these 3,200-plus rounds, including outcomes and all bets made by Ludwig, were forwarded to the math guy, who proceeded to conduct a variety of statistical tests to determine if the outcomes of the spins were random as well as apply some rather involved and sophisticated mathematics to ascertain the probability of such a large win given Ludwig’s betting pattern.2 It turned out that, though improbable – 80 to 1 odds against – Ludwig’s huge net win from this series of bets was not the one-in-a-million event it appeared to be at first glance.3 Having subjected his money to more than three-thousand rounds of bets at a collective 2.37% house edge, assuming everything was on the up and up (and this is, of course, the point of all this), Ludwig’s win just seemed unfathomable. Or at the very least suspicious, which is why casino management and operators in this type of case should and often do appeal to mathematics and other methods of scrutiny to shed light on the matter and assist in possible decisions that might be made or actions that might be taken. One might call it a form of game protection. Such monitoring and analysis often can and should be initiated in surveillance. The results of an appropriate mathematical analysis can point to how much scrutiny is called for. If the likelihood of such a large win is extremely small, then surveillance should be monitoring the play very closely to try and discover whether advantage play, equipment malfunction, bias, or cheating might be the cause. In the case of Ludwig, heightened monitoring and closer scrutiny revealed no evidence of flaws in the game or nefarious activity. The math showed the outcomes to be random and the probability of his huge win to be small, but not extremely so. The private investigator found nothing untoward. Based on this evidence (one might say lack of evidence), casino management decided to allow Ludwig to continue playing. If indeed there was nothing amiss, one would expect that the laws of probability would eventually catch up to Ludwig… after all, isn’t that why they are called the laws of probability? Sure enough, approximately one week after his net win hit the €1.5 million mark, Ludwig lost it all.

A Gentle Introduction to the Casino Math of Fluctuations The Ludwig affair (a true story) demonstrates how casino management – and surveillance as the monitoring mechanism on the front end – might respond to an inordinately large player win. Such a seemingly unusual outcome should prompt the question of whether this is something that can be attributed to normal statistical fluctuations or whether it is likely the result is due to advantage play, equipment malfunction, or outright cheating. Casino math can be used to shed light on this question. The theoretical or expected win from a given series of independent wagers represents the average amount the house (looking at it from the casino’s perspective) will win over many repetitions of the series of wagers (i.e., in the long run). For example, the theoretical house win from 1,000

2 The analysis was complicated by the fact that the roulette game at this casino, like many of the European single-zero games, offered the partager rule, according to which the player loses only half of any even-money bet when the “0” hits. (Partager is also offered in the Atlantic City double-zero games where it is referred to as surrender.) Another complication was the large number and variety of bets Ludwig made on each spin of the wheel, particularly in the latter stages of his run, bets that are not statistically independent. 3 Those interested in the mathematical fine points are referred to Robert Hannum, The Partager Rule at Roulette: Analysis and Case of a Million-Euro Win, in OPTIMAL PLAY : MATHEMATICAL STUDIES OF GAMES AND GAMBLING (2007), Stewart N. Ethier and William R. Eadington, eds. Reno, NV: Institute for the Study of Gambling & Commercial Gaming, University of Nevada, Reno.

bets of $500 each on red in double-zero roulette is $26,300. This means if a very large (think infinite) number of players each made a $500 bet on red for each of 1,000 spins, the average player loss would be $26,300. But there would be variation in the amount lost across the players. Some players will lose more than the expected $26,300 and others would lose less (and about 5% would actually win). The statistical measure that describes this variation in actual outcomes around the expected outcome is the standard deviation. The standard deviation can be used to find confidence limits for the amount won (or lost), or to find the probability associated with a given player win (or loss). Just as different games (or wagers) have a different house advantage, each game (wager) has its own base standard deviation (by base, we mean per unit for a single wager). The following table shows the standard deviation for some of the common games/wagers.

Game/Wager Standard

Deviation per Unit Blackjack 1.14 Baccarat Banker 0.93 Baccarat Player 0.95 Baccarat Tie 2.64 00 Roulette Evens 1.00 00 Roulette Column/Dozens 1.39 00 Roulette Double Street 2.19 00 Roulette Corner 2.76 00 Roulette Street 3.24 00 Roulette Split 4.02 00 Roulette Straight Up 5.76

The expected value per unit – i.e., the house edge if viewing the amount won from the casino perspective and the negative of the house edge if viewing it from the player’s perspective - and the per unit standard deviation for a single wager can be used to derive the expected value and standard deviation for the total win in a series of n independent wagers of $B each using the following formulas:

������� � $ � � � ��� � ����

������� � $ � √� � ��� � ���� The ������� and ������� can be used to derive confidence limits and/or probabilities associated with the actual win from a large series of independent wagers. Confidence limits are based on the volatility guidelines below.4

4 These guidelines are based on the fact that the total win for a large series of independent wagers will follow a normal distribution (bell curve), a result known in statistics as the Central Limit Theorem.

Volatility Guidelines The following table shows the percentage of time the actual win will be more than Z standard deviations from the expected win for a large series of independent wagers:

Z Probability the actual win will be more

than Z SD’s from the expected win Probability Expressed

as 1 in X 1 31.7% 1 in 3.2 2 4.6% 1 in 22.0 3 0.3% 1 in 370.4 4 0.006% 1 in 15,787.2 5 0.00006% 1 in 1,744,277.9

Confidence limits for the total win from a series of n independent identical wagers of $B each are obtained from:

������� � �� � �������� To illustrate, suppose a player makes 1,000 even-money wagers of $500 each in roulette (double zero). Then the player’s expected win and standard deviation associated with the total win are:

������� � $500 � 1,000 � ��.0526� � �$26,300

������� � $500 � "1,000 � 1.00 � $15,811.39 Using these figures, 95.4% of the time the player’s total win from this series of wagers will be between (rounding to dollars):

�$26,300 � �2 � $15,811.39� � �$26,300 � $31,623 � �$57,923 &�' $5,323 This says that 95.4% of the time, the total player win after 1,000 even-money roulette wagers of $500 each will be between –$57,923 and +$5,323. Put another way, we can be 95.4% confident that the player win will be between –$57,923 and +$5,323. Or turning it around, only 4.6% of the time will the player win be outside this range. Obviously this type of calculation can be done for other levels of confidence. For example, using Z = 4 for the same series of 1,000 even-money roulette wagers of $500 each, we would get the statement that only once in 15,787 times would this player’s win be less than –$89,546 or greater than +$36,946. So if a player is up $40,000 after making 1,000 even-money roulette wagers at $500 each, surveillance should be suspicious – this is a result more than four standard deviations from expected and, assuming everything is on the up and up, very unlikely (less than 1 in 15,787) – and monitor this player more closely. Rather than compute confidence limits and seeing where the player’s win falls in relation to these limits, one could just compute the probability of the observed win. This is done by first computing the z-score for the actual win using the following formula:

( �)*+,&- ��� � �������

�������

Using this z-score, the probability of the actual win can be obtained from a table of standard normal probabilities (Z-table) or an appropriate software package such as MS Excel. For the example above of the player who was up $40,000 after 1,000 even-money roulette wagers of $500 each, the z-score is:

( �$40,000 � ��$26,300�

$15,811.39� 4.193

Using the Excel NORMSDIST function,5 the probability that a player will be up by $40,000 or more after 1,000 even-money roulette wagers of $500 each is .000014, or about 1 in 72,650. This suggests that either this player was incredibly lucky or (more likely) something is amiss. Such an extremely unlikely result calls for closer scrutiny. The type of fluctuation or volatility analysis described above can be done for any large series of wagers in any game, though the mathematics becomes more difficult when bet sizes vary, the series includes a variety of different wagers, and/or the wagers are not independent (e.g., one player making several different wagers on each spin of the roulette wheel6). The basic idea is to calculate the probability of the observed win, and if this probability is small, put more surveillance resources into monitoring the situation. Extremely unlikely outcomes should raise concerns about possible advantage play, equipment malfunction, or cheating.

Other Uses of Casino Math in Surveillance Volatility analysis – testing for deviations from expected win and assessing whether a certain large win can be considered a “normal” fluctuation – is one way that casino math can assist a surveillance department, but there are many others. As the Director of Surveillance for one of the major Las Vegas Strip properties explained, “We use the math to understand the games better… so we don’t drop the ball when we see something (a move). We want to know whether we are going to get buried.” This particular surveillance director is very conscientious about using math to help in understanding the games. His approach is to monitor the situation more closely when it seems warranted (oftentimes determined by the math analysis) and liaise with casino operations as needed (as he said, “surveillance spills over to operations”). He used volatility analysis when a Pai Gow “team” won over half a million dollars over the course of 180 hours of play and discovered that while their win at his casino was highly unusual, they had been losing at several other partner properties and their overall play at all properties combined was close to normal. In another case a player had won more than $50,000 after 140 hours of play at Casino War. Detailed math analysis revealed the player won an inordinate number of his larger wagers ($500 to $1000) but the win rate for his smaller wagers ($25) was near the expected (loss). Though further details are confidential, this disparity in win rates between large and small bets helped in resolving the situation as it was consistent with other irregularities and evidence in the case.

5 Specifically: = 1 – NORMSDIST(4.193). 6 This is one of the reasons the mathematics required to analyze Ludwig’s million dollar win was so difficult.

The Surveillance Director at another major Las Vegas Strip casino, who also uses casino math regularly to help him in his job, put it this way, “It’s going to happen – advantage play, cheating… we’re trying to understand. The math helps us in our efforts to be a step ahead of the cheaters and advantage players.” Other ways these top end surveillance directors have used casino math include:

� Examining the effects of camouflage betting, for example, betting into a negative count. What is the player giving up when betting $300 into a negative count?

� Determining how much a card counter might gain by going from 1-10 spread to a 1-20 or

1-30 spread.

� Analyzing the effect of stealing the hole card in Three Card Poker. What happens if you don’t see it every time? How many times do you have to see it to have an advantage?

� Check dice rolls for extended periods (3 hours plus) to test statistically if the outcomes

are consistent with the theoretical (chi-square testing).

� Possible shuffle tracking – checking if the proportion of Tens & Aces is statistically significantly different from the expected 38% when a player plays multiple spots with big bets.

� Using risk of ruin.

Conclusion Casino math can be effective in helping the surveillance unit in detecting advantage play, malfunctioning equipment, and cheating. A primary use of mathematics is volatility analysis and determining whether a particular win that appears unusual really is or whether it is likely just a normal statistical fluctuation. There are hosts of other ways casino math can be used to help the surveillance process, some of which were outlined above. And, of course, the software used to analyze betting patterns and detect card counters is based on the mathematics of blackjack.

Acknowledgements Many thanks to the following people for spending time and sharing their expertise on the subject of the use of casino math in surveillance:

• Ron Buono, Executive Director of Surveillance, MGM Grand Las Vegas

• Ted Whiting, Director of Surveillance, Aria Casino Resort Las Vegas (and for many years in the same position at the Mirage Las Vegas)

• Bill Zender, Last Resort Consulting and former Nevada Gaming Control Agent and Casino Operations Manager of the Aladdin Las Vegas

Robert Hannum Bob Hannum is a Professor of Statistics at the University of Denver, a recognized expert on casino

mathematics, and author of Practical Casino Math. He can be reached at rhannum@du.edu.

Casino Marketing in Atlantic City is famous for coming up with inventive new ways to bring in new

The Mick was famous for his “joke a stroke” rounds of golf at the local links. Willie Mays was a

community ambassador and often seen signing a baseball or two for the neighborhood kids. Both Mickey and Willie drew six figure salaries in their respective marketingMickey was once quoted as saying “I never did so much work in my life” when asked aboumeet and greet player development marketing responsibilities. 1983 was also the year that Major League Baseball Commissioner Kuhn issued a lifetime ban to both Mays and Mantle for working in the two Atlantic City casinos. As luck would have itCommissioner Ueberroth took office

Casino surveillance has entered into an age of marketing as concepts and theories are developed to

assist the overall operation of any casino. marketing strategy that best fits your operation. Once you have a plan in place and the support from management, you are well on your way to increasing thyour in-house clients. Surveillance must take an approach that is a complete opposite of the

asino Marketing in Atlantic City is famous for coming up with inventive new ways to bring in new

customers. They used sports and music entertainment in the early days to draw high rollers to the tables.

One of the best known marketing concepts in the early days of casino gambling in Atlantic City around 1983 was to hire two of the greatest baseball legends in the world. The Claridge Casino hired legendary Yankee Mickey Mantle with Bally’s Park Place Casino following suit with “The Say Hey Kid” Willie Mays.

he Mick was famous for his “joke a stroke” rounds of golf at the local links. Willie Mays was a

often seen signing a baseball or two for the neighborhood kids. Both Mickey and Willie drew six figure salaries in their respective marketing/public relationsMickey was once quoted as saying “I never did so much work in my life” when asked aboumeet and greet player development marketing responsibilities. 1983 was also the year that Major League Baseball Commissioner Kuhn issued a lifetime ban to both Mays and Mantle for working in the two Atlantic City casinos. As luck would have it the ban was lifted in 1985 when new M.L.B.

took office.

asino surveillance has entered into an age of marketing as concepts and theories are developed to

assist the overall operation of any casino. Knowing your customer is key to developing a surveillance marketing strategy that best fits your operation. Once you have a plan in place and the support from management, you are well on your way to increasing the internal relationships that wi

Surveillance must take an approach that is a complete opposite of the

M a r k e t i n gM a r k e t i n gM a r k e t i n gM a r k e t i n g

O fO fO fO f

S u r v e i l l a n c eS u r v e i l l a n c eS u r v e i l l a n c eS u r v e i l l a n c e

By Tony Weiss, ACSN

asino Marketing in Atlantic City is famous for coming up with inventive new ways to bring in new

he Mick was famous for his “joke a stroke” rounds of golf at the local links. Willie Mays was a

often seen signing a baseball or two for the neighborhood kids. Both /public relations positions.

Mickey was once quoted as saying “I never did so much work in my life” when asked about all of the meet and greet player development marketing responsibilities. 1983 was also the year that Major League Baseball Commissioner Kuhn issued a lifetime ban to both Mays and Mantle for working in

the ban was lifted in 1985 when new M.L.B.

asino surveillance has entered into an age of marketing as concepts and theories are developed to

is key to developing a surveillance marketing strategy that best fits your operation. Once you have a plan in place and the support from

e internal relationships that will best serve Surveillance must take an approach that is a complete opposite of the

M a r k e t i n gM a r k e t i n gM a r k e t i n gM a r k e t i n g

S u r v e i l l a n c eS u r v e i l l a n c eS u r v e i l l a n c eS u r v e i l l a n c e

By Tony Weiss, ACSN

fundamental casino marketing concept that places heavy concentration on the 20% of the casino patrons that provide 80% of the casino revenue. Surveillance must give equal customer service to all of its internal customers.

Develop A Marketing Plan:

Understand both the company mission statement and revenue goals by meeting with executives, directors and key managers. Ask what the expectations are for the surveillance department from their unique perspective? Develop a plan to deliver timely and critical information by providing reviews, live observations, audits and well formatted reports.

A unique surveillance perspective that supports the company is that the departments or customers are part of the same company as the surveillance department. Understand that we ultimately report independently but we are all on the same team. We have greater impact supporting each operation. Surveillance will always arrest the bad guy and that is recognized by our internal customers. A “what can we do for you” attitude is a fantastic beginning to your marketing plan.

Networking and Analysis:

A solid relationship with as many casino professionals as possible is a key element to providing your direct reports and management vital information that may save the company untold amounts of potential revenue loss. It could be as simple as a known advantage player or as complicated as possibly leaking company information. Surveillance data mining, trend analysis, POS information and win/loss evaluations on table games are a few concepts that help surveillance market the potential of a proactive operation.

Customer Intent to Return:

The principle of customer intent to return is the foundation of any successful casino. Surveillance can take each request for assistance as an opportunity to provide a resolution followed up with suggestions to improve the situation going forward. Never stop by simply giving an answer without asking what surveillance can do to assist the department that has contacted us for help. A straightforward thought process that surveillance is a service of the casino is one that the internal customers will appreciate and utilize more often. The days of a policing authoritative mentality do not work in a modern surveillance environment.

If you see a job well done on the casino floor make sure to contact their supervisor and provide positive feedback. There is no better marketing tool then surveillance presenting an encouraging image by noting a situation where a customer did a great job!

Winning the battle and losing the war marketing mistakes include releasing information and/or reports with no warning in order to make the surveillance look intelligent. The long term damage created in this scenario affects the relationship that has been cultivated. If you are not protecting critical information or being asked by your superiors it is always best to bring management into the loop as soon as possible regarding observations.

Benefits of Position and Surveillance Strategies:

Surveillance can measure its marketing strategy by gacustomers. Positive results from the internal patron will follow as they become more confident with the usage of the surveillance capabilities. The department will climb higher up the corporate ladder as the measurable results become more apparent to the executive change the mindset of an entire department by simply respecting their ability to run their department and asking what surveillance can do to assist their operation.

Relationship Marketing:

Player development is often considered the casino’s biggest weapon. The people skills are utilized to draw high end play into the property resulting in revenue profits. Surveillance can use this example to reach out to develop our customers. Find out what area of the casino interests each of your associates. Have them meet with the management of that area and closely work with them to widen relationships. The customer will see the interest and enthusiasm and want to grow the partners

Advertise the Home Run:

We should end the article just as we began with a baseball analogy.between so it is critical to the overall marketing of the operation to get the message out. hit a home run you must market the accomplishment by building the surveillance team. Make sure everyone involved is given full credit. Incorporate as many team members as possible into the investigation so that multiple shifts and associates are given credit. Take the opthe capabilities of the department with all of the direct reports of the department. Use all available communication outlets to present a message of a unified team effort and result. department is only as good as theprograms. One of the best marketing tools for a surveillance department is a well informed enthusiastic associate who takes a call and provides superior customer service. opportunity to market the ability and accomplishments of the team!

Individual Marketing Plan Design

Each casino and surveillance department is run by a well organized professional team. The concept of this article is to simply discuss the many opportunities that surveillance has to market the department. Your department will ultimately decide how far pasboundaries you will be willing to exploreallow it to become stale. Update and market your most successful methods by constantly asking for feedback. Utilizing every request as an opportunity to provide solid information in order for the contacting department to make a well informed business decision is always the best marketing approach.

Benefits of Position and Surveillance Strategies:

Surveillance can measure its marketing strategy by gauging the comments that are received by their customers. Positive results from the internal patron will follow as they become more confident with the usage of the surveillance capabilities. The department will climb higher up the corporate ladder

asurable results become more apparent to the executive team. It is amazing how you can change the mindset of an entire department by simply respecting their ability to run their department and asking what surveillance can do to assist their operation.

Player development is often considered the casino’s biggest weapon. The people skills are utilized to draw high end play into the property resulting in revenue profits. Surveillance can use this example

ustomers. Find out what area of the casino interests each of your associates. Have them meet with the management of that area and closely work with them to widen relationships. The customer will see the interest and enthusiasm and want to grow the partners

We should end the article just as we began with a baseball analogy. The big casebetween so it is critical to the overall marketing of the operation to get the message out.

you must market the accomplishment by building the surveillance team. Make sure everyone involved is given full credit. Incorporate as many team members as possible into the investigation so that multiple shifts and associates are given credit. Take the opportunity to advertise the capabilities of the department with all of the direct reports of the department. Use all available communication outlets to present a message of a unified team effort and result. department is only as good as the end user that works all of the expensive equipment and

One of the best marketing tools for a surveillance department is a well informed enthusiastic associate who takes a call and provides superior customer service.

unity to market the ability and accomplishments of the team!

Design:

Each casino and surveillance department is run by a well organized professional team. The concept of this article is to simply discuss the many opportunities that surveillance has to market the

Your department will ultimately decide how far past the traditional surveillance you will be willing to explore. Once you have developed a triumphant strategy, do not

allow it to become stale. Update and market your most successful methods by constantly asking for est as an opportunity to provide solid information in order for the

contacting department to make a well informed business decision is always the best marketing

uging the comments that are received by their customers. Positive results from the internal patron will follow as they become more confident with the usage of the surveillance capabilities. The department will climb higher up the corporate ladder

. It is amazing how you can change the mindset of an entire department by simply respecting their ability to run their department

Player development is often considered the casino’s biggest weapon. The people skills are utilized to draw high end play into the property resulting in revenue profits. Surveillance can use this example

ustomers. Find out what area of the casino interests each of your associates. Have them meet with the management of that area and closely work with them to widen relationships. The customer will see the interest and enthusiasm and want to grow the partnership.

The big cases are few and far between so it is critical to the overall marketing of the operation to get the message out. When you

you must market the accomplishment by building the surveillance team. Make sure everyone involved is given full credit. Incorporate as many team members as possible into the

portunity to advertise the capabilities of the department with all of the direct reports of the department. Use all available communication outlets to present a message of a unified team effort and result. The surveillance

end user that works all of the expensive equipment and software One of the best marketing tools for a surveillance department is a well informed

enthusiastic associate who takes a call and provides superior customer service. Never miss an

Each casino and surveillance department is run by a well organized professional team. The concept of this article is to simply discuss the many opportunities that surveillance has to market the

t the traditional surveillance Once you have developed a triumphant strategy, do not

allow it to become stale. Update and market your most successful methods by constantly asking for est as an opportunity to provide solid information in order for the

contacting department to make a well informed business decision is always the best marketing

BLACKJACK & POKER APPLICATIONSBLACKJACK & POKER APPLICATIONSBLACKJACK & POKER APPLICATIONSBLACKJACK & POKER APPLICATIONS

Surveillance has been busy eliminating "Free play" or "Slot Dollar" promo abuse that has been costing the industry thousands upon thousands of dollars at many of your properties. It is rampant around Atlantic City and probably everywhere this type of promo is offered from coast to coast. We have had perpetrators caught with up to (150) player card accounts and PIN Numbers, including a roadmap they use to commit the fraud from house to house. Surveillance has presented this to management in an attempt to stop the flow of abuse to unsuspecting valuable slot player accounts.

Your step by step guide to investigate slot promo theft

Surveillance observes and/or receives information from management of suspected abuse regarding slot promos. Step #1: Enter names and accounts of all involved into the surveillance tracking database. Initiate a database enrollment and include photos of all involved for the entire surveillance department to share. One enrollment listing the primary suspected abused account as well as all others involved as "aliases'. This ensures all information and photos can be easily identified by accessing of one enrollment only. Each photo identified by date and # in database. Step #2: Tracker notification of account being accessed. Locate and start filming all activity. Zoom in on kiosk to identify how many accounts are being viewed. The perpetrator may have more player cards then first suspected. The kiosk is usually the initial place of access as the basic slot data available is displayed here. Follow individual to slot machine and document activity. How many downloads and how many times different player cards are inserted? Confirm all of the E-Promo history within the data search by utilizing the various options within the system. It is critical to print screen each step of the investigation for documentation purposes as player tracking information is sometimes not able to be recalled after you sign out of the system. This is critical when following a paper trail to coincide coverage for presenting an iron clad case in court. Once confirmed, contact DGE and/or security depending on severity of your findings. Advise your slot management team and confirm with the Card Services Supervisor that the PIN(s) has been disabled. Depending on situation it is not always a positive to have security take possession of the player card. This can affect future notifications to CCTV via the tracking system if the now evicted, and or arrested individual should return to the property. Additionally if the patron (victim) is unaware of their accounts being accessed, and they are not on property, you’ll have the possibility of changing the PIN until the perpetrator(s) are caught. This allows surveillance to capture coverage of the suspect in action while on property moving forward. It should be noted if the perpetrator uses the card/account to download, and many times whey will then input their own card to reap the player reward benefits. This is actually a positive for detection as the SDS report will show all the cards input, removed, time played, and any tickets generated for the cash out. The experienced cheat will execute the fraud on an initial high percentage payout game such as video poker or keno type games. In this case, the monitor room and or slot department will run a recent history list. Here all card accounts input and E Promo downloads, as well as ticket numbers for redeemed tickets, will be displayed. Run ticket voucher number sequences in “Ticket Barcode inquiry” from the slot data system to ascertain the location of ticket redemption.

PIN number and eventually distract the patron and take their player card.are left behind; they pick them up and try different PINS. Some players use easy ones like 2222, 7777, 1234 etc. Many casinos now have a safeguard in place that three or more invalid PIN entry attempts lock out the patron from accessing the account. The only way to reset the card is to go to casino services. It mightslot accounts where players have been locked out of their account. The information could lead to many possibilities. Regarding dishonest employees. We have arrested and case an agent came in and went to the kiosk only to reenter a new pin. who was not on property by accessing $800 from their account. The scam was realized afa complaint. (The PIN #’s are encoded andof a card services employee’s duties. So now when we have a possibility of abuse and we check the last PIN reset. Another scenario is promotions employee, or any employee who has access to make replacement cards, assists a customer, of which many elderly have problems inputting information and who trust and volunteer their PIN numbers. The employee makes a mental inside jobs are potentially devastating to any casino operation. It seems that marketing has to instill to its customers that these player reward cards should be treated like a credit or debit card. Gone are the days that the bad guys track play for a buffet comp type scam. Every house has different computer systems, is redeemed at a NRT machine for cash. Coverage is checked to confirm identities and obtain photos for the surveillance database. The above listed procedures have assisted management as eliminating future abuse of the slot comp dollar bonus system.

Review continuous taping to get photos which will then be input into the surveillance database. If the report is within the coverage retention periodthe monitor room can run the lists, and if appropriatedetermine where the abuse occurred. Filming can be run back. The recent player list will show all tickets generated with #. Sometimes the ticket is input into another slot machine and the asset number of that machine will be the location, and then the above noted procedure can be done on the machine where redeemed. How do they get the PINS? This is still up for grabs. I believe it is a

combination of the following. We have all seen undesirables stand around and watch the elderly patrons input their pin on the slot machine touch pads. They note the

PIN number and eventually distract the patron and take their player card. We have also noted when player cards they pick them up and try different PINS. Some players use easy ones like 2222, 7777, 1234 etc.

Many casinos now have a safeguard in place that three or more invalid PIN entry attempts lock out the patron from reset the card is to go to casino services. It might be

slot accounts where players have been locked out of their account. The information could lead to many possibilities.

have arrested and terminated employees for resetting a customer's pin. One to the kiosk only to reenter a new pin. He then capitalized on a highly rated patron

who was not on property by accessing $800 from their account. The scam was realized after the rightful player made (The PIN #’s are encoded and supposedly no one can see them). However resetting them is in the

So now when we have a possibility of abuse and we check the last PIN reset.

Another scenario is promotions employee, or any employee who has access to make replacement cards, assists a customer, of which many elderly have problems inputting information and who trust and volunteer their PIN numbers. The employee makes a mental note of it and then produces replacement cards. No Pin reset needed. These inside jobs are potentially devastating to any casino operation.

It seems that marketing has to instill to its customers that these player reward cards should be treated like a credit or debit card. Gone are the days that the bad guys track play for a buffet comp type scam.

Every house has different computer systems, but the basics are probably the same. A majority of the time the ticket is redeemed at a NRT machine for cash. Coverage is checked to confirm identities and obtain photos for the surveillance database. The above listed procedures have assisted management in the recovery of lost revenue as well as eliminating future abuse of the slot comp dollar bonus system.

Review continuous taping to get photos which will then be input into

coverage retention period of suspected abuse, e monitor room can run the lists, and if appropriate, player history to ermine where the abuse occurred. Filming can be run back. The

recent player list will show all tickets generated with #. Sometimes the the asset number of that

machine will be the location, and then the above noted procedure can

This is still up for grabs. I believe it is a combination of the following.

We have all seen undesirables stand around and watch the elderly patrons input their pin on the slot machine touch pads. They note the

We have also noted when player cards they pick them up and try different PINS. Some players use easy ones like 2222, 7777, 1234 etc.

Many casinos now have a safeguard in place that three or more invalid PIN entry attempts lock out the patron from be interesting to data mine

slot accounts where players have been locked out of their account. The information could lead to many possibilities.

resetting a customer's pin. One He then capitalized on a highly rated patron

ter the rightful player made However resetting them is in the realm

So now when we have a possibility of abuse and we check the last PIN reset.

Another scenario is promotions employee, or any employee who has access to make replacement cards, assists a customer, of which many elderly have problems inputting information and who trust and volunteer their PIN

note of it and then produces replacement cards. No Pin reset needed. These

It seems that marketing has to instill to its customers that these player reward cards should be treated like a credit or

but the basics are probably the same. A majority of the time the ticket is redeemed at a NRT machine for cash. Coverage is checked to confirm identities and obtain photos for the

in the recovery of lost revenue as well

Cheating at Three

1948 KC Card Company Ad

While card bending has been around awhile, it is currently popular for Three Card Poker, (TCP).

Bending cards is a sure fire way for a cheater to take

state the Dealer qualifies if he has an Ace, King or Queen. One way the cheat can take

advantage of this is to bend these same cards in such a way so that he can tell if the Dealer has

a qualifying card in his hand. There other advantages as well that we will describe in this article.

The cheat will wager on the 1s and 2

the decks by bending the cards to give him” tells” of what is to be

low amounts for the first hour to allow him to bend the cards. The bending occurs when he

picks up his hand. The cheat will hold the hand horizontally and shuffle the cards from one hand

to another until the one he wants to b

the cheat presses his thumb down onto the card. As the card is passed to the other hand the

card is now bent. Once he feels comfortable that most of the A

bet the Ante depending on if he sees a bent card in the dealer’s hand or not, almost never

betting the Pair Plus. The cheat will also keep an eye on the tray of the automatic shuffler. Any

bent card will be identified by the cheat while still in the tray. When

in the tray, the bent card will be distinguishable. If this hand is to be dealt to him, with the bent

card, the cheat will add to his Ante and place a toke bet for the Dealer. Since the hand has not

been dealt yet, many times the Dealer will allow the increase in bet. The toke bet is an incentive

to the Dealer to allow the increased wager, which is actually a late bet.

If the hand he is to receive is still in the tray, and no bent card is observed, the cheat will

obviously not increase his wager.

If the cheat looked at his cards and did not have anything, qualifying card or better, and the

Dealer’s hand had a bent card, he would fold.

If the Dealer’s hand did not have a bent card, the cheat would place a Play bet, knowing the

Dealer did not have a qualifying card, hoping the Dealer did not have a pair or better.

Cheating at Three-Card Poker: Card Bending

1948 KC Card Company Ad – Card Marking Punch

While card bending has been around awhile, it is currently popular for Three Card Poker, (TCP).

Bending cards is a sure fire way for a cheater to take advantage of this game. The rules of TCP

state the Dealer qualifies if he has an Ace, King or Queen. One way the cheat can take

advantage of this is to bend these same cards in such a way so that he can tell if the Dealer has

. There other advantages as well that we will describe in this article.

Cheating Method

The cheat will wager on the 1s and 2nd

spots, while seated in the 1st

spot. The cheat will set up

the decks by bending the cards to give him” tells” of what is to be dealt. The cheat will wager

low amounts for the first hour to allow him to bend the cards. The bending occurs when he

picks up his hand. The cheat will hold the hand horizontally and shuffle the cards from one hand

to another until the one he wants to bend is in front. As he shuffles the card to the other hand,

the cheat presses his thumb down onto the card. As the card is passed to the other hand the

card is now bent. Once he feels comfortable that most of the A-K-Q cards are marked, he will

Ante depending on if he sees a bent card in the dealer’s hand or not, almost never

betting the Pair Plus. The cheat will also keep an eye on the tray of the automatic shuffler. Any

bent card will be identified by the cheat while still in the tray. When the cheat observes a hand

in the tray, the bent card will be distinguishable. If this hand is to be dealt to him, with the bent

card, the cheat will add to his Ante and place a toke bet for the Dealer. Since the hand has not

the Dealer will allow the increase in bet. The toke bet is an incentive

to the Dealer to allow the increased wager, which is actually a late bet.

If the hand he is to receive is still in the tray, and no bent card is observed, the cheat will

ot increase his wager.

If the cheat looked at his cards and did not have anything, qualifying card or better, and the

Dealer’s hand had a bent card, he would fold.

If the Dealer’s hand did not have a bent card, the cheat would place a Play bet, knowing the

Dealer did not have a qualifying card, hoping the Dealer did not have a pair or better.

Card Poker: Card Bending

While card bending has been around awhile, it is currently popular for Three Card Poker, (TCP).

advantage of this game. The rules of TCP

state the Dealer qualifies if he has an Ace, King or Queen. One way the cheat can take

advantage of this is to bend these same cards in such a way so that he can tell if the Dealer has

. There other advantages as well that we will describe in this article.

spot. The cheat will set up

dealt. The cheat will wager

low amounts for the first hour to allow him to bend the cards. The bending occurs when he

picks up his hand. The cheat will hold the hand horizontally and shuffle the cards from one hand

end is in front. As he shuffles the card to the other hand,

the cheat presses his thumb down onto the card. As the card is passed to the other hand the

Q cards are marked, he will

Ante depending on if he sees a bent card in the dealer’s hand or not, almost never

betting the Pair Plus. The cheat will also keep an eye on the tray of the automatic shuffler. Any

the cheat observes a hand

in the tray, the bent card will be distinguishable. If this hand is to be dealt to him, with the bent

card, the cheat will add to his Ante and place a toke bet for the Dealer. Since the hand has not

the Dealer will allow the increase in bet. The toke bet is an incentive

If the hand he is to receive is still in the tray, and no bent card is observed, the cheat will

If the cheat looked at his cards and did not have anything, qualifying card or better, and the

If the Dealer’s hand did not have a bent card, the cheat would place a Play bet, knowing the

Dealer did not have a qualifying card, hoping the Dealer did not have a pair or better.

The cheat would continually bend the A-K-Q, throughout his play, even after the initial bends.

The same pattern of handling the cards would be repeated to deceive the Dealer and to get the

Dealer accustomed to his way of checking the hands.

Prosecuting the Cheater

It is important in such cheating to be have clear evidence of the identity of the individual, prove cheating

method, and win/loss amounts. When the State authorities respond to review the activities, it must be

clear to them that cheating took place.

1. Identify the Cheat. As basic as it sounds you have to be able to link the cheater with other

coverage you have of the game and cheating methods. Other camera shots of the game may

not necessarily show the cheater’s face. By identifying the player, position at the game,

description and clothing, time/date, you establish the person’s identity seated in particular

position.

2. The cheating move. Identify the method of how the cards are bent. Having knowledge of the

game, recognizing what cards are bent, you can now determine the player’s strategy in the

game. This is critical testimony. If you are able to get an angle to identify the player actually

bending the cards, so much the better. Once you describe the rules of the game, establish the

method of cheating and then predictability as a result; you have established the evidence

required to prosecute.

3. Game coverage. Overall coverage of the game is required. Identify seating of the player,

position of the shuffler, wagering and increasing of the wager by the player.

4. Additional coverage. Provided of the cheating, such as an angle identifying the hand flat on the

table with the bent card. The bent card will cause the hand to bulge.

5. Clear and accurate. Ability to describe the cheating method and prove it on the video.

Thoroughly describe to the authorities the cheating activity. Provide details so that the arresting

officer can clearly understand and review on video the cheating activity. The video must be

clear and accurate and leave no doubt as to the authenticity of the recoded activity.

6. Physical evidence. Pull the cards and hold for potential evidence.

7. Showing Loss to the Casino due to the cheating. Review each hand the cheater played. List the

amount wagered and any added bets he made knowing he will receive a hand with a Queen or

higher. Count what was added to both the Ante and Pair Plus bets. Add the amounts of any

hands the cheater played but folded due to knowing the dealer had a qualifying card. Total loss

to the casino will influence the charges filed against the individual.

Note: By bending the cards the cheat is altering them for his advantage and that in itself is illegal.

Protecting the Game

The onus falls on Table Games and Surveillance to protect the game from this type of cheating.

Surveillance must be knowledgeable in the game, familiar with the moves necessary to bend the cards,

handling methods by the player such as the horizontal shuffling, betting patterns, no Pair Plus bets and

adding to the Ante while the first hand is still in the shuffler tray.

Table Games must instruct their Dealers in table game protection. Check cards for bending. Procedures

should include announcing, “no more bets” or wave off any more bets, then start the shuffler dealing.

Push back late bets. Alert Games Management and Surveillance to any irregular or suspicio

Bending the cards on TCP can alter the advantage to the cheater over the House by wide margins

depending on how well the card bender plays his hands. Whatever the advantage, it is w

educating personnel on this method of cheating.

Dennis Lamond, Rick Pfeifer and Tina Carletti

Harrah’s Atlantic City Surveillance Department

609

Dlamond@ac.h

rt Games Management and Surveillance to any irregular or suspicio

Bending the cards on TCP can alter the advantage to the cheater over the House by wide margins

depending on how well the card bender plays his hands. Whatever the advantage, it is w

educating personnel on this method of cheating.

Dennis Lamond, Rick Pfeifer and Tina Carletti

Harrah’s Atlantic City Surveillance Department

609-441-5360 surveil@ac.harrahs.com

Dlamond@ac.harrahs.com rpfeifer@ac.harrahs.com

rt Games Management and Surveillance to any irregular or suspicious play.

Bending the cards on TCP can alter the advantage to the cheater over the House by wide margins

depending on how well the card bender plays his hands. Whatever the advantage, it is well worth

By Russ Schellhas for ACSN

When it comes to surveillance and operating theories, everyone has one! You can let

your mind wander where it may from that point. The one thing that is obvious as we move into a new decade is that we all need to invent new ways to help our casino “ thrive and drive” revenue streams. One way to push the bottom line is to remove the old adage that surveillance is working for casino ops when it comes to looking at the table games play. One area that has shown to have a lasting affect regarding opportunities to evaluate performance is complimentary theoretical totals based on ratings reviews. Yes, surveillance becomes a “money generator” as adjustments are made based on true rating investigations. The formula shown above many of us in the Casino industry can recognize as the method to determine the theoretical win that should be obtained over time from any given player at, and in this case a Blackjack game. The most looked at part of this formula is the rounds per hour obtained by the dealers throughout the day at the games evaluated. Casino Operations and Surveillance are always completed surveys to obtain the average round per hour for a game, shift or pit to see where they need to concentrate training and hopefully increase those rounds per hour to obtain a higher theoretical win over time. The second area looked at is the hours played by the patron. The Casino has their rating systems to comp the players with gaming and non-gaming incentives for players to stay on the games longer to increase that theoretical win over time. The rating system rewards players for higher level of play and in return this hopefully brings players to a higher level or average type of player. The aspect of the hours played and the average bet is the two main factors that determine the comp value returned to the player in this formula. The player comps are based on these two aspects being rated correctly for the whole process of the theoretical win to take place. So the Casino can maintain a certain level and can return a certain level back to the customer in their comps and still make money. If one or both of these aspects are over rated to the customer they receive a higher comp value for a lower level of play. This in turn undermines the whole process of theoretical win, customer comp values and most importantly the overall bottom line of what the Casino really makes throughout time. Let’s just look at average bet rating for the moment. If a supervisor rates a player at a $200 average bet for one hour, but real average is a $150 that player receives a $9.00 higher comp for that play that the casino just lost. The theoretical for the $150

Hours Played x Rounds P/Hr x .0075 (BJ) House Advantage x Average Bet = Theoretical Win

average bet would be $180.00; the $9.00 loss has now lowered the theoretical by 5.2% to $171.00. If you have a pit of say 10 tables with this level of play and only 1 player from each table per day is rated this way, the formula would look like this; $9.00 x 10 tables x 365 days a year = $32,850.00 loss to the Casino in unearned comps. For the same level of play at a $200 average bet for an hour rated correctly but the length of play is over stated. Let’s say that this player at this one table only played 45 minutes not an hour. The actual theoretical is $180.00 not $240.00 and the comp to the player is $36.00 and should be $27.00. The formula for this would look like this; $9.00 x 10 tables x 365 days = $32,850 loss to the Casino in unearned comps. This total is only one side of the overrating comp issue that comes about to the patrons in the form of the average bet. The average bet is a drop in the bucket compared to the length of play issues. As you can see by the initial example of the average bet and length of play, the amount of the over comp is the same for both if the error is equal in

percentage to the total amount. If you imagine a player leaves the game and the floor supervisor is unable to close them out right away and 5, 10 or even 15 minutes go buy before they are closed out and the rating is not ended when the player actually left but ended at that time it was closed out, the amount of over comps in length of play to patrons can become staggering. Even if you take some of the average bet overrating issues and a little of the length of play overrating issues and compute a number of times this may happen throughout the day at all the games you can see how much your Casino is losing. As the theoretical win is the main basis for the complimentary system and the return to the patron, the accurate rating of these Players or at least to the point of a consistent percentage of inaccuracy to allow the Casino to adjust the complimentary to the customers is needed to insure an acceptable level of return to the casino in profit. The biggest issue is the aspect of the patrons rating is seen by most supervisors as an estimate of that play. Of course most Casinos have a formula or method by which the supervisors should calculate that average bet. But in the real world on the Casino floor the supervisor doesn’t have the time to break out the calculator or compute the average bet on a piece of paper to get it even close. The problem with this is most supervisors have a way of their own to compute this quickly and close this player out. The problem in the end is this turns into a multitude of ways that are being used to get that average bet. A good way to remedy this is, establish a quick and easy way that all supervisors can use to get an average bet so all players are rated the same. When this is done and it shows how close the ratings are to actual average bets, the casino can adjust the comp system to reflect that level and retain more of their bottom line. There are other ways surveillance can make a difference and this is through rating review investigations. This can be done as part of a negative hold program or just looking for and reviewing ratings that may fall into a questionable amount of time or average bet. As these reviews are completed and the actual is different than the rated, have Casino Operations adjust these ratings and show in your report the comp saved as a result of your investigations. In the end, comping players is the life blood of casinos’ renewable resource and that is its player base that returns over and over again for those rewards given out by the casino to the player and in turn the players overtime sustain the casinos’ bottom line. The comp reviews and rating corrections in areas of average bet and length of play help to strengthen that bottom line and in turn are part of sustaining a Casino as well.

Surveillance continues its efforts to communicate and break down the inner workings of table games cheat moves as incidents occur. When scams such as dice sliding hit it is not uncommon to be approached by games personnel who have informed us that while they were frequently reminded to be on the look-out for “dice-sliders” they were not really instructed on the “tells” we discussed in the class. It seemed there was some hesitancy to ask for additional information on “dice sliders” when the term seemed so self-explanatory. With the recent activity in Atlantic City as well as other jurisdictions we will re-visit these “tells” and add a few new wrinkles as the “dice sliders” continue to hone their craft.

The Slide This part is self explanatory as the shooter will slide the dice down the layout in an effort to keep the “skyward” sides of the dice in the position he set them on prior to the release. In years past the “slider/shooter” would attempt to slide two “6’s” which would create the maximum payout of 30 to 1 on the “6-6” or “12”. The “slide” is an imprecise science and will not work on every occasion but if the “slider/shooter” has just a 50% success rate per roll, he will have one of the dice stay on the skyward “6” on each roll. The other die may tumble freely but still has a one in six chance of landing on “6” and getting the “slider/shooter” and his team a 30 to 1 payout. In these instances where the team is trying to hit “6’s” they will hedge their wagers by betting on the “5-6” or “11” at 15 to 1 as well as a large field wager. The Field wager is also a successful hedge as it will win 4 out of 6 occasions if, the shooter only keeps one die on “6’ – the only possible

“Ask the Professor” Dice Sliding Tells

By Kevin Kelly for ACSN

dice totals are “7, 8, 9, 10, 11 and 12”. The team will win the field wager on the “9” , “10”, “11” and “12” (2 to 1) on the “12” making themselves a better than 2 to 1 favorite on the slide even, if they can only get one die to stay on the “6”. The “6’s” are still a favorite for the “dice slide” team but with the return of the “hop” bets the teams can now hit the 30 to 1 payout on any “Hardand 3), “8” (4 and 4) “10” (5 and 5) as well as the high/low “2” (1 and 1) or “12” (6 and 6). The traditional “hardto 1 on the “4” and”10” as well as 9 to 1 on the “6” and “8”. The “hardalso provides a little cover to the team as well sudden large Field wager with a “12”. Tells

1) The “slider/shooter” will usually take a position next to the stickman so, the dice have the shortest distance to travel and because most people are right-handed the shooter will usually be to the left of the stickman.

Right-handed shooter dice released almost at halfway mark of the table - left of stick person – shortest distance to travel.

2) The “slider/shooter” or team member will throw in chips or cash directly to the box person to divert attention from the

tals are “7, 8, 9, 10, 11 and 12”. The team will win the field wager on the “9” , “10”, “11” and “12” (2 to 1) on the “12” making themselves a better than 2 to 1 favorite on the slide even, if they can only get one die to stay on the “6”.

ill a favorite for the “dice slide” team but with the return of the “hop” bets the teams can now hit the 30 to 1 payout on any “Hard-way” – ‘4” (2 and 2), “6” (3 and 3), “8” (4 and 4) “10” (5 and 5) as well as the high/low “2” (1 and 1) or “12” (6

The traditional “hard-ways” also provide the team with additional payouts of 7 to 1 on the “4” and”10” as well as 9 to 1 on the “6” and “8”. The “hardalso provides a little cover to the team as well – as it is a more common wager than a

large Field wager with a “12”.

The “slider/shooter” will usually take a position next to the stickman so, the dice have the shortest distance to travel and because most people are

handed the shooter will usually be to the left of the

handed shooter dice released almost at halfway

left of stick shortest distance to

The “slider/shooter” or team member will throw in chips or cash directly to the box person to divert attention from the shooter’s release of the dice.

tals are “7, 8, 9, 10, 11 and 12”. The team will win the field wager on the “9” , “10”, “11” and “12” (2 to 1) on the “12” making themselves a better than 2 to 1

ill a favorite for the “dice slide” team but with the return of the “hop” ‘4” (2 and 2), “6” (3

and 3), “8” (4 and 4) “10” (5 and 5) as well as the high/low “2” (1 and 1) or “12” (6 ways” also provide the team with additional payouts of 7

to 1 on the “4” and”10” as well as 9 to 1 on the “6” and “8”. The “hard -way” wager as it is a more common wager than a

The “slider/shooter” will usually take a position next to the stickman so, the dice

The “slider/shooter” or team member will throw in chips or cash directly to the

On left cash goes directly to box person to box – cash is usually given to base dealer to stick person – these transactions are to divert box persometimes these bets will come from a team member on the other side of stick and coincide with release to form a natural “bridge” and obscure stick and surveillance view as the dice travel under the other player.

3) Team members will trypatterns. Floor person pulled away by nonhandling chips and cash

4) Bets will be

On left cash goes directly to box person – on right “hard-way “bets in chip form cash is usually given to base dealer – prop bet chips are usually dropped

these transactions are to divert box person’s attention sometimes these bets will come from a team member on the other side of stick and coincide with release to form a natural “bridge” and obscure stick and surveillance view as the dice travel under the other player.

Team members will try to distract floor person from watching shooter and betting

Floor person pulled away by non-player – used in conjunction with box person cash – with unusual prop action.

way “bets in chip form prop bet chips are usually dropped

son’s attention – sometimes these bets will come from a team member on the other side of stick and coincide with release to form a natural “bridge” and obscure stick and

o distract floor person from watching shooter and betting

used in conjunction with box person

weighted to a specific outcome 1) and the “hard-eight hop” (30 to 1) one roll wager.

On left $2400 out $900 “hard$900 “hard-way” out less than 5 minutes on this roll

5) Bets frequently include dealer bets

benefit of the doubt or sympathy from staff. $250 and down for the dealer’s on $25 “hard-way”

6) The action on the dice will be suspect frequently stopping well short of the back wall – with spinning motion versus a tumbling motion. In the older versions of these scams the teams counted heavily on the distraction of the box person with the well chance of a “no-roll” call. Also by having another team member on the opposite base reaching in to the box concentrate on getting the dice “total” correcstick will call “no-roll”.

The die on the don’t pass

7) The “shooter” may set the

dice in a more deliberate manner but these good mechanics/sliders really can set the dice in their handvery quickly and out of view from the box, floor or dealers – especially if the distractions or diversions have done their jobs. In the case of the “hop” scenario if, the stick person flips the dice to the “place” side the “shooter” knows as the dice sitfull or half rotation to hit the desired number.

weighted to a specific outcome – in our most recent incident – “hardeight hop” (30 to 1) one roll wager.

On left $2400 out $900 “hard-way” with $50 30 to 1 “hop” for $1500 way” out - $3300 out total on successful slide – shooter had dice fo

less than 5 minutes on this roll.

Bets frequently include dealer bets – get benefit of the doubt or sympathy from staff.

$250 and down for the dealer’s on $25

The action on the dice will be suspect – frequently stopping well short of the back wall

with spinning motion versus a tumbling motion. In the older versions of these scams the teams counted heavily on the distraction of the box person with the well timed buy-ins with chips or cash to reduce the

roll” call. Also by having another team member on the opposite base reaching in to the box – they would force the stick person to stand upright to concentrate on getting the dice “total” correct and decrease the likelihood the

roll”.

The die on the don’t pass-line – well short of the back wall.

The “shooter” may set the dice in a more deliberate manner but these good mechanics/sliders really can set the dice in their hands very quickly and out of view from the box, floor or dealers

especially if the distractions or diversions have done their jobs. In the case of the “hop” scenario if, the stick person flips the dice to the “place” side the “shooter” knows as the dice sit in front of the box whether they need a full or half rotation to hit the desired number.

“hard-eight” (9 to

way” with $50 30 to 1 “hop” for $1500 – on right shooter had dice for

In the older versions of these scams the teams counted heavily on the distraction ins with chips or cash to reduce the

roll” call. Also by having another team member on the opposite they would force the stick person to stand upright to

t and decrease the likelihood the

in front of the box whether they need a

8) The “puck” will be used as a backboard for a carom shot as it will kill the action

on the die and make it more likely the die will continue flat across the lay outleaving the skyward side set by the shooter unchanged reportedly even a hand of a team member can be utilized to “kill” the tumbling action as well – all in an effort to make the roll less random and reduce 35 to 1

odds against - to potentially 2 to 1 or greater for the player(s).

On the left the puck positioned on the “8” inches from the line has moved and the die with the “4” still skyward only travelled as far as the don’t pass-line. (Side angle overhead v

The “puck” will be used as a backboard for a carom shot as it will kill the action on the die and make it more likely the die will continue flat across the lay outleaving the skyward side set by the shooter unchanged – working stacks or reportedly even a hand of a team member can be utilized to “kill” the tumbling

all in an effort to make the roll less random and reduce 35 to 1

potentially 2 to 1 or greater for the player(s).

On the left the puck positioned on the “8” inches from the line – on the right the puck has moved and the die with the “4” still skyward only travelled as far as the don’t

line. (Side angle overhead view below)

The “puck” will be used as a backboard for a carom shot as it will kill the action on the die and make it more likely the die will continue flat across the lay out –

working stacks or reportedly even a hand of a team member can be utilized to “kill” the tumbling

all in an effort to make the roll less random and reduce 35 to 1

on the right the puck has moved and the die with the “4” still skyward only travelled as far as the don’t

On left puck before being struck by die – part of puck below place bet line – on right after being struck it is moved above lower line – this carom killed the die on the don’t pass-line well short of the back wall and the points built in to initiate tumbling and thus random motion.

9) These teams will also target the smaller tables or especially the 1 man tub games. Again the dice can travel the least distance and there is less staff to distract.

It is important to remember that not every dice slide will be successful but with “hop” bet payouts of 30 to 1, “hard-ways” north of 7 to 1 and better than 2 to 1 odds in the Field, these teams need only be successful a fraction of the time. Keeping an open mind is critical as one die tumbling or a couple of losing decisions are possible even with very good dice sliders and teams. A $3300 win in just a few minutes can make up for a few losers. Another important factor to keep in mind is that all of these “tells” will not be present on every occasion and may vary slightly from team to team. Hopefully, these “tells” will increase awareness and improve our game protection moving forward from both the Games and Surveillance side.

TTTThroughout my tenure in the casino business whether it was on the casino floor, in the “eye in the

sky,” or as a customer I have come to despise and admire the table game hustler! As a casino

professional and as a customer I have witnessed some really elaborate schemes to gain the

confidence of unsuspecting players by some of the best hustlers in the city. I have been amazed at

some of the antics these hustlers will do to easily gain the confidence and control over a player’s

cash and chips. Some of those schemes will be covered in this article.

An amusing anecdote: One of the funniest schemes I’ve seen was when a hustler was trying to get

the attention of a potential victim; he went as far as bumming a cigarette from the victim when

clearly the hustler did not smoke. However, this approach backfired on this hustler when the victim

offered and insisted on lighting the hustler’s cigarette on the spot. It was poetic justice watching

the hustler face turn three shades of green when he choked on the smoke while attempting to

strike a conversation with the “Mark!” The term, “Mark” is used to describe a potential victim

targeted for the hustle.

“Marks” come in all color, shapes, and sizes as well as social and economic status

while these hustlers that plague the city are less than law abiding citizens to say the

least. The type of people that our customers wouldn’t give the time of day outside

the casino but are willing trust their opinion, allow them to play their chips, and

relinquish a portion of their winning’s to the hustler without a question. A very

interesting dynamic develops between these hustlers and players during the scam.

On some occasions, they develop what appears to a temporary friendship. In case

after case the “Marks” have defended their newly found friend from casino security

and gaming staff questioning the hustler’s motives!

Most hustlers seek out the weak by a methodical reconnoiter of the pit and tables searching for a

player or “Mark” that appears to be struggling with the speed of the game or their inability to

understand the betting procedures and rules of the game. The Hustler prefers a fast pace game

such as craps to infiltrate all the while sizing up their victim and setting the stage for the hustle. In

my opinion, there are two general methods employed by the hustler to gain the confidence of a

victim.

The first method is covert, surreptitiously getting the attention of the “Mark” simply with a whisper,

touch of the elbow or shoulder while on the game then, with a quick betting suggestion after he’s

established the contact in a non-threatening way. These hustlers are smart enough to know not to

confront or make the “Mark” feel ill at ease with their presence by providing betting suggestions to

a person that is unsure about how much to bet or if it’s the right amount to bet. It is at that very

moment the hustle begins.

Combating The Hustling Flea Combating The Hustling Flea Combating The Hustling Flea Combating The Hustling Flea By Frank Hauser, ACSN Contributing Writer

The second method is more overt, blatantly introducing their opinion to the “Mark” by bellying up to

the table next to them and boldly informing them they’re betting incorrectly or to go as far as

removing their chips from the rack and make the proper bet for them! Surely the hustler knows

this method is risky and the timing has to be perfect but the rewards far exceed the risk when

properly executed. Over and over I have seen this method work so well that the hustler gains

control over all of the “Marks” chips! In some cases, I’ve observed the hustler rationing back the

“Mark’s” chips after a winning session and capture the lions share, in essence, the hustler becomes

the player and the “Mark” becomes the spectator.

Both methods are highly effective only when the hustler has a better working knowledge of the

game than the “Mark.” There are some exceptions to the rules but for the most part the hustler

manages to gain the confidence of the “Mark” and they will not back off until they have gotten what

they want or the well runs dry. The ideal situation is to get the “Mark” to make bets for the hustler

then, and only then, the hustler will start to keep the winnings for himself; this eliminates the

embarrassing asking for chips or cash from the “Mark”, while they color up or cash out! Time and

time again I’ve seen this scenario play out in the hustlers favor. On occasions, I’ve seen the hustler

start to catch a roll and get so caught up in the play that the “Mark” is discarded and left to fend for

himself!

You might ask yourself, is there honor among hustlers, hustler’s code or pecking order? My answer

would be, yes! To a certain degree, there is some honor among hustlers and there is certainly a

hustler’s code and pecking order! This was proven on one very early morning while watching the

only crap game open on the casino floor. There were at least five or six well known hustlers

standing around watching the action; they were sizing up the players and finally they concentrated

on the weakest player on the game. The hustlers have varying degrees of experience as far as

their hustling prowess! I’ve noticed some are better at the hustle than others and they

acknowledge this experience by relinquishing their foothold on the “Mark” to another more

experienced hustler. This action will always be rewarded by sharing the take after the more

experienced hustler is finished with the “Mark!”

The hustler’s code is a simple one, never, ever, confront the “Mark” or the casino staff and risk

being evicted for disorderly conduct or undesirable activity; that would be detrimental to their

livelihood! They will pressure the “Mark” to make bets for the hustler or give chips/cash to the

hustler after the scam but almost never create a stink about not receiving any cash or chips if the

“Mark” decides to stiff them. This scenario occurs from time to time but rarely the hustler walks

away without anything for his efforts.

What are the tell tale signs there is a hustler working in your casino? The signs may be subtle at

first but after continued exposure to the casino floor certain characteristics will start to develop in

regard to recognizing a hustler.

Frequent patronage by the hustler; they will be observed weekly, sometimes daily as long as there is a

target-rich environment and no interference from the pit staff or security.

Hustlers will stand behind their intended victim and attempt to establish a connection.

Once a connection has been established they will start to bet with the victim’s chips or cash.

Most hustlers will engage the victim or pressure them into making separate bets and they will begin

to collect their own winnings.

When the play is over, win, lose or draw, the hustler will go as far as to follow the victim to the cage,

pressuring them into giving a tip or a percentage of the winnings as a fee for their assistance!

When it’s all said and done and they have their money, the hustler will begin the process over and

over again unless they are confronted by the pit staff or security!

Obviously, the casino is better off without these predators walking around the casino floor

searching for their next victim but removing them from of the casino is always a “Cat and Mouse”

game. There are some really talented hustlers in Atlantic City that can hustle a player before they

know they’ve been hustled. Most of the casinos in town know who these hustlers are but are wary

of confronting them because they might claim they are being profiled without cause or singled out

because of their race and social economic status. Also, the pit staff or security is less likely to

approach the hustler because they do not want to disturb the “Mark” if they happen to be winning

when the hustler has their confidence. The “Mark” may treat the hustler as a “Good Luck Charm”

and get angry when the hustler is being removed from the table. A lot of times it’s a “Catch 22”

when it comes to extricating the hustler from the “Mark!”

Frank Hauser has been in the casino business since 1981; he was employed by several casinos as a dealer, boxperson, floor supervisor, and provided craps instruction for one of the local casino training schools operating in Atlantic City, New Jersey.

ACSN exc lus ive beh ind the scene notes

cheat ing seminar he ld recent ly in At lant ic Ci ty!

InvisibleSubs and Sig

xc lus ive beh ind the scene notes f rom a recent cas ino tab le games

cheat ing seminar he ld recent ly in At lant ic Ci ty!

Invisible Subs and Signals

Tony Weiss for ACSN

f rom a recent cas ino tab le games

cheat ing seminar he ld recent ly in At lant ic Ci ty!

Tony Weiss for ACSN

What really happens on games that are being compromised? Cheat groups will always invent new ways to signal the beginning of the move. Atlantic City was very fortunate to have an expert games cheat in town who requested to have his name taken out of this piece due to some of the controversial information within the article. The first game covered was craps. The best information that came out of the seminar was that an undisclosed California site will take any shipped tie and master a sub on the front of a tie that is undetectable to the naked eye. Instead of attaching a gaming cheque to the back of a tie with a clip device or cut opening, you can now make a smooth brush to the front of the tie with a palmed gaming cheque as you (box position) tap off the game and your tie falls over the rack. This is a deadly new twist on a traditional area of concern. Also discussed were the many secret signals used by teams on poker. The way a player positions his hands on the cards is an indicator of the card values. Another invisible sign could be the way you toss your cards into the muck will indicate specific values. A little known timing sequence to tip off a card value is for one team member to move cards around or separate cards to tip off the higher values. An example would be an Ace is tipped off by making the move one second or a King has a two second move separation. A few dealer collusion moves on poker include the dealer palming a single known card from the muck. The dealer simply uses the card to either steer it to his agent or issue it out where it helps to hurt an unsuspecting player in a large pot. The last tip for poker inside work was constant verbal chatter from a dealer that is using specific verbiage to control wagers during a false shuffle. Specific commands are used as triggers to stay in the hand or fold during heavier pots. The closing comments made by the gaming cheat expert was that there is an invisible world of moves and signals that go on in many poker rooms that is completely undetected by the “eye” and games management.

2010

Casino Surveillance Guide

Understanding & Reporting Understanding & Reporting Understanding & Reporting Understanding & Reporting

SARCSARCSARCSARC ~ CTR ~ Structuring~ CTR ~ Structuring~ CTR ~ Structuring~ CTR ~ Structuring

By Tony Weiss ACSN

The Financial Crimes Enforcement Network or (FinCen) division of the IRS recently reduced

the requirements regarding a few casino reporting categories that do not pose a threat or risk in the area of money laundering, tax evasion concerns and financing of terrorism. The new rules have helped to bring down casino filings by more than a third of the previous reports. This is great news for casino compliance departments and their controllers. A link to view the twenty page report regarding the assessment and changes is as follows:

http://www.fincen.gov/news_room/rp/files/CasinoIndustryCTRFilings.pdf

The purpose of this user guide is to both define and provide examples of casino gaming related S.A.R.C., C.T.R. and structuring.

Surveillance has the ability to tie information together when it comes to investigating and proving a SARC on behalf of the casino. By monitoring transactions from beginning to end as they start in one area and finish in another, we are able to utilize our monitoring and data systems to identify a structured transaction. Cooperation between surveillance and the many departments on the casino floor is essential, resulting in properly documenting reports that both protect the casino as well as aiding in the regulatory compliance mandates. An observation example from surveillance is detailed below

A surveillance observer is watching a blackjack game and he notes a player and his wife in action. The husband wins approximately $11,000 and his wife was not as lucky as she only won $2,000. Overall the couple appeared to have a great time and exited the game to cash out at the cage. The surveillance operator decides to follow the players to complete the play entry. While standing in line the husband hands off $4,500 in gaming chips to his wife and proceeds to only cash out $4,900 at the window. The wife who actually only won $2,000 peels off to another window and cashes out $4,900 as well. Is this a case of the first rule of marriage, “What is hers is hers and what is his is hers” or have we just witnessed a structured attempt to avoid the casino reporting a currency transaction report?

Structuring is defined as an attempt to evade the Bank Secrecy Act or Title 31 by arranging or breaking up transactions to avoid reporting and recordkeeping. The act of structuring is criminal and can involve both criminal and civil penalties. Casinos are responsible to develop compliance programs, file reports and maintain records of any and all evidence of structuring violations. A partial example of the required structuring evidence report to FinCen is shown below in Form 102. The form is commonly known as a Suspicious Activity Report by Casinos or S.A.R.C. Structuring to avoid a CTR penalties can result in fines of up to $250,000 as well as up to five years imprisonment if found guilty.

Casinos have thirty days after detecting suspicious activity that have an aggregate total of $5,000 to report it. Suspicious activity includes illegal activity, attempts to disguise funds such as money laundering, evading recordkeeping requirement of the BSA, transaction where the casino

is used to facilitate criminal activity. If suspicious activity is noted and the suspect is unable to be identified after exhausting all avenues, an additional thirty days is granted for SARC filing.

Casinos are also required to file C.T.R. reports. The Currency Transaction Report or FinCen Form 103 is used by casinos to file a single or aggregate currency transaction for that particular gaming day where the transaction is in excess of $10,000.

Many casino patrons do not understand that the casino is required by law to report transactions of over $10,000 via a CTR report. They may feel that the redemption of vouchers and/or gaming cheques may be taxed as income. Below are several examples of casino structuring. *The list is provided and not limited to any other observed activity that might be considered suspicious.

Money Laundering and other illegal activity

A bank robbery occurs and the suspect is given sequenced bills or even bills that have dye coloration. The suspect enters a casino and launders the currency in a slot machine. The resulting cash out gives the suspect clean money that is not traceable to the initial theft.

A subject is attempting to create income documentation as a result of embezzled money from their employer. They wash currency in a casino to create ratings of wins and losses on slot machines and/or table games. In the event that the suspect is questioned about banking deposits or where income is derived they simply produce gaming statements.

Business owners who attempt to avoid both state sales and income tax will wash cash on hand currency in casinos by creating gaming statements.

Criminal activity such as funding terrorism, bookmaking, racketeering, fencing of stolen property, selling drugs and illegally established businesses all have large sums of currency exchanging hands. Win/loss statements allow instant access to documentation that explains parts of the excessive holdings.

A Japanese loan sharking ring was detected as ill-gotten money was placed on deposit in a Tokyo bank. The group set up a credit line in a Vegas casino based on confirming the holdings in the Tokyo safety deposit box. The money launderer drew markers totaling the amount deposited in Tokyo and later exited the casino with “clean” money.

A Ponzi scheme was caught after a gambler money laundered seven million dollars to cover his gambling habit in N.J., Nevada and Mississippi. In the end it was realized that twenty-nine million dollars was taken from unsuspecting investors who put up cash in a mortgage bridge loan underwriting scam

Recognizing Suspicious Customer Activity

Table Games Offset wagering after a large cash buy-in. Bets include outside chances on roulette,

bank/player on baccarat and the pass/don’t pass variations on craps. Card counting, advantage play and cheat teams all have been noted cashing out at the

cage using every form of CTR circumvention. Follow their actions from start to finish to prove any SARC possibilities.

Large cash buy-in or marker issuance under $10,000 with little or no actual gaming. Reviews of ratings activity where patterned small wagers and minimal time of play are

noted after a large buy-in. Patron attempts pass off gaming cheques to an associate to cash out on their behalf. Two or more patrons each purchase gaming cheques between $3,000 and $10,000 only

to combine their walking total where only one player obtains a cashier’s check for the total.

Slots Player places large sums of cash in a slot machine only to cash out a voucher with little

or no play. They repeat the same method on several games prior to cashing out multiple tickets in the $3,000 to $4,000 range

A high roller enlists a partner to take credit for a JP by stepping in as the winner and signing the IRS form W-2G.

Finance Areas

Subject makes a large deposit at the cage with small denomination bills. The total is drawn as front money on a table game. The player has a small amount of gaming action and cashes out at the cage for large bills.

Customer attempts to cash out gaming cheques, vouchers or tokens that amount to more than $10,000. When they asked for proper ID to complete a CTR, they attempt to reduce the total amount or walk away entirely.

Patron pays down an outstanding marker debt of more than $10,000 with a series of currency transaction that don’t exceed $10,000 for any gaming date.

Racebook winning ticket of plus $10,000 is cashed out with a requested combination of cash and gaming chips where the cash is less than $10,000. Patron goes to another window and cashes out the remaining gaming cheques.

Finally, a customer appears to use their casino account as a place to make large deposits followed by money transfer requests after a short amount of time and not action.

Research and resources for this article found on FinCEN internet sites