Online Casino Gambling

At the beginning of 2011, 29-year-old Briton, Ashley Mitchell, hacked into Zynga and embezzled $12 million worth of online chips. Mitchell was recently sentenced by the Exeter Crown Court, facing four charges of converting criminal property and violating the Computer Misuse Act. The court gave him two years imprisonment for these offenses.

Another Hacking Incident

Mitchell has a history of criminal hacking activity. In 2008, Mitchell hacked into a local government network which resulted in a 40 week suspended sentence. As a result, Mitchell had broken the terms of this sentence and issued an additional 30 week imprisonment.

The Zynga Network

Mitchell hacked into the Zynga network and stole 400 billion digital poker chips which equates to $12 million. These chips cannot be converted to cash. Therefore, the only way Mitchell could have made money from these chips is to sell them to other Zynga players. He attempted to do exactly this and received $86,000 total for a portion of these chips when he was caught. At his current rates, he would have profited $300,000 if never caught.

The Precision of Hacking

The prevailing judge on the case was Philip Wassal who recognized the expertise and precision used to hack into their computer system. Judge Wassal further stated the time Mitchell had spent researching the system must have been considerable. Since people and businesses rely heavily computer systems, the Judge issued Mitchell a stiffer sentence.

Virtual Money

During the trial, Prosecutor Gareth Evans indicated that the currency Mitchell stole exists only online and is available exclusively through Zynga. Therefore, the theft did not affect the company’s revenue unlike most other instances of stealing. Additionally, Zynga has the opportunity to recreate the digital chips stolen by Mitchell. On the other hand, the theft may have resulted in a loss of clients due to the potential for hackers at the website.

Gambling Addiction

In the end, Mitchell pleaded guilty and was found to be struggling with a gambling addiction. His lawyer recognized that Mitchell was spending at least 1,000 Pounds per day at online poker rooms and casinos.

Hopefully prosecution of Ashley Mitchell makes an impact on the online gambling industry forcing them to double-check all security systems to ensure this does not occur with real money chips. Although most online casinos are certified a secure, robust and reliable entities, it is still important to routinely verify no holes exist in the software.

Card counting in the casino game of blackjack is solely used for the manipulation of the wagering pattern to exploit the information on the cards. In other words, it is a practiced and developed skill blackjack players use to their advantage to track various cards in a deck giving them a larger edge over the casino. As a result, this practice is banned at all casinos.

When using card counting in blackjack to manipulate betting patterns, there are three parameters players must remember:

• Running count (R)
• Side count (X)
• Balance number of decks in the shoe (D)

The true count of cards is adjusted based on the formula: (R + X) / D. The result is a factor that helps the player decide how to deviate from the typical blackjack strategy. Therefore, the larger the count, the more beneficial the deviation is for the player. Variables R and X take on positive and negative values which combine to determine whether the true count is positive or negative. This is a direct result of the distribution of cards within the shoe.

The most critical parameter for determining the size of the true count is D. A small number for D results in a large true count while a large value equates to a small true count value. D is indicative of the rules set forth by the casino which communicates to the player where the card counting skill will be useful.

One of the primary factors in determining D is the total number of decks used. The second factor of significance is penetration which is the percentage of all cards from the dealing shoe prior to the shoe being exhausted. For example, if all cards in the shoe are dealt, then the penetration is 100 percent with the D factor being close to 0.

The aforementioned true count is utilized in two ways. The first method is a mathematical formula known as the “Kelly Criterion” which determines the overall percentage of bankroll remaining to be wagered based on the calculated true count value. The other method is to use the typical blackjack strategy which reflects the true count.

Card counting for blackjack can be difficult to learn and even more difficult to master. You also must factor in that casino surveillance is under constant scrutiny of all players betting patterns, therefore it is important to not deviate from normal blackjack play. However if you can master this combination, a great deal of money can be made.

A former casino card dealer was convicted in a federal court for being part of a San Diego-based casino cheating ring. He was condemned for conspiracy in a scam that profited $1.5 million from an Indian casino. Known as the Tran Organization, 41 members have pleaded guilty to scamming 27 casinos in the United States and Canada including the Pechanga Resort and Casino in Temecula, CA, the Barona Valley Ranch Casino in Lakeside, CA and the Sycuan Casino in El Cajon, CA.

The False Shuffle

The ring recruited and bribed dealers to perform false shuffles which are a method that creates a set of unshuffled cards of approximately 40. During this process a slug would be created which is a place card that notifies the criminals to track all subsequent cards. Other Tran Organization members would then track the specific order of the cards that were played in order to know which cards are next in the deck. This gives the players a significant advantage in games like blackjack.

When the slug would appear in the deck, Tran Organization members sitting at the table would know the order of succeeding cards and bet based on them. This led them to win thousands of dollars per hand from numerous casinos.

The Latest Conviction

The latest conviction of the Tran Organization was Mike Waseleski who was a dealer at Resorts East Chicago Casino in East Chicago, Indiana. He faces a maximum sentence of five years imprisonment and a hefty fine of $250,000 at his upcoming sentence March 28^th, 2011. In addition to the conviction of Waseleski, seven other dealers from the East Chicago resort were charged with similar crimes.

The Tran Organization

According to federal agents who have been tracking the Tran Organization, the card-cheating scam involved dozens of individuals many of whom work inside casino across the country. Card cheating techniques are being utilized by the Tran Organization on a daily basis.

The Process

In 2005, Waseleski was flown to Houston to learn the intricacies of the cheating scam. He and other dealers were taught how to false shuffle during mini-baccarat and blackjack games. Members of the Tran Organization bribed casino dealers and their supervisors to perform false shuffles and create slugs. Once the members at the table could successfully track the cards they would signal the dealer to execute a false shuffle.

This is a common but difficult to detect scam that repeats itself across the country and under the watchful eye of casino surveillance. Hopefully in the future, employee personnel will be better prepared to identify these illegal acts.

Four Korean nationals have been arrested in connection to an international casino cheating syndicate at Foxwoods Casino in New London, Connecticut. They have been suspected of scamming the casino out of between $750,000 and $1 million. Two of the four suspects were charged as part of an ongoing, three-month investigation that involved federal and state police in addition to casino surveillance and security.

Indictment of Two Perpetrators

State police indicated the two charged utilized an electronic device to scam baccarat games during many visits to the casino between September 8^th and October 20^th. During this time they racked up a large amount of winnings.

Similar Scam in Atlantic City

Simultaneously, the other two assailants were picked up in New Jersey and are being held on $500,000 bond for felony charges. This pair was arrested during a cheating investigation where they were scamming the mini-baccarat tables at Bally’s Hotel and Casino in Atlantic City. The two are being held as fugitives from the law.

Due to an ongoing investigation, state affidavits have been sealed. The state prosecutor argued for higher bond due to a lack of affiliation in the area, the sophistication of the scam and the amount of money stolen. Luckily passports were taken from the perpetrators.

Charged for Multiple Crimes across the Globe

The prosecutor revealed the four defendants were suspect in cheating crimes in Atlantic City, Las Vegas, Foxwoods and many other casinos across the globe. The ringleader faces 16 counts of the possession of a cheating device for use at a casino, 7 counts of first-degree larceny and 3 counts of third-degree larceny.

A Large Investigation

The investigation set forth by Connecticut State Police is said to also involve Foxwoods Casino surveillance and security, the Foxwoods Office of the Inspector General, the New Jersey State Police Casino Unit and the Department of Homeland Security. This was a major investigation that resulted in a large bust of criminals.

The four aforementioned criminals have scammed many casinos out of an unimaginable amount of money with this electronic device. Now that they have finally been apprehended, they are facing some serious charges in multiple states for scamming potentially millions of dollars.

The large cheating investigation that spanned many states and departments was the primary force for tracking these perpetrators and bringing them to justice. This authority group will continue to follow through with the investigation, hopefully arresting other casino cheats.

Everyday in 2005 and 2006, Sandia Casino employees Lynn Gallo and Steve Roybal scammed the casino for a total take of $1.2 million. The first was a slot machine attendant, the second a slot supervisor. This has been the greatest casino heist in New Mexico’s history.

Stealing for Over a Year

Despite a plethora of surveillance cameras and security guards that see every aspect of the casino, Gallo and Roybal were able to loot the casino of thousands of dollars each day for over a year. An expert in casino management was appalled by the amount of money stolen for such a long period of time. They continued to get away with the crime for the simple fact that nobody was looking. Surveillance and security were not doing their jobs.

The Exploitation of Vulnerability

The two criminals were relying on the fact that nobody was being vigilant. Gallo and Roybal found and exploited vulnerability in the casino surveillance procedure. This vulnerability was found among the slot machines. The idea is simple; if a guest wins a few thousand dollars or more on slots, a casino employee will immediately give the winner the cash prize. This is a considerable vulnerability.

The Scam

Gallo and Roybal scammed the casino by creating fake jackpots on paper and keeping the cash. Gallo would hand the cashier a slip indicating a customer had won a large slot jackpot. The cashier would give the money directly to Gallo to take to the customer. This transaction required the signature of a supervisor such as Roybal. There was no jackpot, there was no winner, and it was a large con game.

A Failure by the Internal Controls

Since the Sandia Surveillance Team was not watching, the two criminals were able to steal up to $20,000 in one day. Over 15 months, the pair used this scam 550 times for a total amount embezzled equaling $1,242,581.75. The Sandia’s internal control should have identified this long before the first instance. The casino found that their Auditing or Surveillance Department did not follow correct procedure.

On October 5^th, 2006, the pair pocketed more than $20,000 and was reported by an employee for suspicious activity. The casino launched an internal investigation and the two were fired. Gallo died before being indicted and Roybal received 50 years in prison. In the end, greed overtook them and resulted in their capture.

In many casinos, surveillance and security officers have not had basic training with regards to evidence handling. Since this is such a vital aspect of the casino business it is important for these employees to know what to do and what not to do should the situation where evidence handling ever occur. In addition to surveillance and security officers, executives in the pits and slots as well as many other employees that could investigate should be trained on this procedure.

The Basic Definition of Evidence

The typical definition of evidence is that which establishes or falsifies truth. Evidence is the procedure by which facts are proven to be true or false in a court of law within a country with an established judicial system. It helps prosecute criminals and protect the innocent. As a result it is vital to know the proper handling of evidence in any type of job.

The Purpose

Evidence has two purposes in the casino surveillance industry, to protect the assets and liabilities of the casino and other areas of the organization and successfully prosecute criminal activity that occurs on the groups of the establishment. The most successful cases end in a guilty plea by the perpetrator which requires clear and complete evidence. Also, everything must be completely and thoroughly documented.

Reports from different departments and the surveillance report that outlines, in detail, the actions taken by the perpetrator must be completed, reviewed and signed off upon by the proper supervisors. Any missing detail can be detrimental to the overall case against the guest.

Errors in Evidence Handling

When faults in the handling of evidence occur, defense attorneys question the reliability, its preservation and the overall competency of those that gathered it. These errors can result in the criminal being set free or prosecutors completely denying the case. There are many instances in the casino industry where cheats and thieves who were caught on tape have been released due to an inconsistency found in surveillance procedure that resulted in the case being dropped.

Correct evidence handling and complete documentation written by employees is one of the most important aspects of running a casino. Everything must be detailed and accurate in order to have strong evidence in the courtroom to sentence any perpetrators. More casinos should develop procedures on how to properly handle evidence in the case of an issue on the casino floor.