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Coronavirus III: Eyes Wide Shut

Fifteen years ago, when most of the AP discussion was consolidated on Stanford Wong’s Green Chip page, there was a recurring conjecture, posed by naïvely optimistic card counters: When a butterfly flaps its wings in China, penetration increases in Vegas. For example, one person would make a post saying that the US had just signed a treaty banning military research on biological weapons, and the next poster would say, “So penetration is going to increase!” The Rube Goldbergian logic would go something like this: If we ban bio research in the US, the virus labs will move to foreign countries, especially China; without proper ethical and safety regulations, a virus will escape a Chinese lab; the ensuing worldwide pandemic will shut down casinos throughout the US; after two months without revenue, the US casinos will be desperate for cash when they re-open; to entice Americans to travel to the petri dish that is the Strip, Vegas will have to offer something that locals casinos throughout the US cannot; previously, Vegas casinos would offer fabulous shows, nightclubs, restaurants, roller coasters, strippers, and delirious nights spent shoulder-to-shoulder at the crap table with other like-minded tourists; with social-distancing guidelines shutting down nightclubs, spas, restaurants, and debauchery, Vegas will have to find some other way to make the game attractive; ergo, they’ll increase the penetration!

You had me till “ergo”! The conjecture requires three assumptions: that casino executives know what penetration is, that gamblers care what penetration is, and that casinos will compete with each other using penetration. In my decades as a pro, I still haven’t figured out which of those three assumptions is the most ridiculous. For a few inexperienced players to share their daydreams online was less annoying than the silence of the experienced majority. By failing to call out misinformation online, knowledgeable players allow idiocy to fester online. Of course, sometimes that is our goal.

Continue reading Coronavirus III: Eyes Wide Shut
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The Green Chip War

In a Gambling with an Edge podcast, two card counters—“Joe” and “Semi-Pro”—tell the story of a chop disagreement. I am only a listener to the podcast, with no inside knowledge, so my comments will undoubtedly misstate their positions. Pretend this discussion is based on a fictional incident. My points still apply. Part of the difficulty in running an AP team or real-world relationship is disagreements over money. To recap the fictional scenario: During her play, Semi-Pro had gone to a table where a gambler asked her to wait a few hands before joining. When the gambler’s lucky streak ended, he thanked Semi-Pro by toking her $25. The senior teammate Joe, a grizzled veteran of the EV wars, thinks that the green chip should be part of the team chop. [At that point Marlo Stanfield called in to the show to relate his experience as a rookie counter on Joe’s team: “I wanted it to be one way, but Joe told me it’s the other way.”]

Now comes Semi-Pro, giddy at $25 of UV (unexpected value) derived from her unique skills (the skills that cause gamblers—especially older males—to say, “So you’re telling me there’s a chance”), outside the scope of the team mandate to count cards. By her position, it was only incidental that the $25 even came in a casino, and the profit should accrue to her the same as if a flirtatious barista had given her a free latte at the coffee shop earlier in the day. That chip has nothing to do with the team chop.

Continue reading The Green Chip War
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Coronavirus II: The Congressman, the Scorer, and the Shooter

At 6:30 a.m. on September 11, 2001 (“9/11”), I was just walking into my room at the Main Street Inn (now the Bridger Inn) in downtown Las Vegas after an all-nighter playing and scouting. I turned on the TV and saw the fire at the World Trade Center, which had been hit by a small plane, they said. I grew up in sight of the towers (at least on a clear day from the cemetery on top of the hill), so it was surreal seeing them collapse. Then all domestic flights were grounded, and I found myself locked down in Vegas.

Today’s youth, and some of us old-timers, have forgotten who the luckiest person on earth was that day. Lost in the shuffle of 9/11 was one U.S. Representative Gary Condit. At the time, he was dominating the headlines after the May-2001 disappearance of Chandra Levy, an intern with whom he had had an affair. The public (read “I”) believed he had a role in her disappearance, or at a minimum was not sharing all of his information with investigators. Then 9/11 happened and the Condit Scandal evaporated, just like that. When Levy’s body was found in 2002, it was barely a story.

Continue reading Coronavirus II: The Congressman, the Scorer, and the Shooter
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Coronavirus I: Lockdown

RIP, Futurist

Twenty years ago, I spent Easter locked down in a concrete holding cell at CCDC—Clark County Detention Center—after being jailed on trumped-up charges by Caesars Palace, who couldn’t handle that my teammate and I had won a few thousand bucks playing Three Card Poker. From the jailhouse phone, I called Arnold Snyder, my publisher, to tell him to hold the presses to give my lawyer time to look over the manuscript for Beyond Counting, published a few months later.  Like Jesus, I consider Easter something of a professional anniversary, typically celebrated by whacking a casino game while contemplating my career goals. This weekend there won’t be any game-whacking for me (can’t say about Jesus).

Today I’m spending my Easter locked down by the CDC—Center for Disease Control and Prevention—after a supposedly trumped-up coronavirus, without the flashy gore of Ebola and smallpox, caused a real pandemic after all. For me, it was real from the beginning. Ever since my own deadly bout with a pathogen years ago, Google has been feeding me every article on Ebola, MERS, E. coli, and brain-eating amoebas. I click on them all. I needed a ventilator for over a week, and had to re-learn to walk, so the medical implications of the coronavirus are quite real to me.

For others, there are different stages of realness. Did it become more real when the virus attacked a celebrity (Tom Hanks)? An athlete (Rudy Gobert)? When the NBA shut down, and then all sports, and hence sports betting, it started to feel real to some APs. Did it get real when Ireland shut down pubs? Maybe when Canada shut down hockey? Or when China shut down casinos?

Then the ides of March brought casino closures worldwide. That’s when it got real for APs. For some, the financial impact is palpable, but they don’t realize how lucky they got, medically. I am very confident that if casinos had remained open one more week, many APs I know—or you—would have gotten infected. No big deal, you say? A virus with a roughly 1% death risk, maybe a bit less for someone under 50 years of age—ha! I don’t know if you’ve looked at a calendar lately, but most of us aren’t young anymore! On top of that, most APs are male, possibly boosting the death risk twofold. Now we’re talking about something comparable to a one-outer in poker. Have you ever been in a “1n1” game of Ultimate Texas Holdem, on the river with the dealer down to a single out to beat you? Put your life against that last card the dealer is about to flip over. If everyone at the Blackjack Ball is put up against that, one or two people die.

It’ll become more real when someone you personally know dies. I’m there. A hobbyist card counter who often played a double-deck game that I sometimes played got COVID19 and died. He was such a fixture that my crew had a nickname for him. We called him “The Futurist” due to his resemblance to Dr. Michio Kaku, a scientist who is popular for his conjectures about the future. I suppose I didn’t personally know The Futurist. If you had asked him if he knew me, he would surely have said no, or he would have just said that I’m a local gambler he recognizes. I knew his name and his game, though, so that’s pretty close in my world.

The Futurist would always sit at third base on DD, playing one or two spots, always enjoying himself, especially when betting the Lucky Ladies in unison with other counters at the table. He probably enjoyed the camaraderie of it all more than whatever money could be made off that game. He was a friendly fellow, and he so consistently anchored that band of counters that it became a bit unnerving to occasionally see that table deadspread on a weekend afternoon.

And now, when the casino eventually re-opens, The Futurist won’t be sitting anchor. This isn’t real.

What is To Be Done?

When the coronavirus forced casinos to close last month, the smart APs I know were not in the casinos at all, or they were bouncing around the country liquidating chip inventories, making sure they had enough cash on hand to survive a protracted lockdown. The fake APs? Well, they were, I imagine, just panicking. Panicking about possible death from a relentless virus? No!! Rather, some are panicking about not being able to pay for basic expenses for a few months. APs are not peculiar in this regard. A recent survey estimates that over half of Americans do not have enough savings to survive three months of expenses: https://www.washingtonexaminer.com/news/nearly-half-americans-live-paycheck-to-paycheck-bank-survey. It should be embarrassing for any AP to be living game-to-game after winning six or seven figures in the last few years. Fiscal responsibility is especially important for an AP, whose income can be highly variable and unpredictable. Who knows when the next big score will come?

Even a squirrel is smarter than most Americans. A typical squirrel works hard all year long, and builds up a bankroll of 10,000 units, er, nuts. And no, the squirrel doesn’t forget where they all are. Studies show that squirrels have organized storage systems: https://www.mentalfloss.com/article/504458/squirrels-are-probably-more-organized-you-study-finds. So the typical squirrel is smarter than Johnny Chang, the MIT counter of Bringing-Down-the-House fame, notorious for discovering caches of chips previously hidden and forgotten in his house. (I have no doubt Johnny Chang will comment below with a link to a squirrel trying to hide a nut in the fur of a Bernese Mountain Dog, and say, “I’m definitely smarter than that squirrel!” I’ll beat him to it: https://www.youtube.com/watch?v=HTPOSdyA7Uo)

So while half the world is whining about what a nightmare this lockdown is, and comparing it to the UIGEA Black Friday in 2011, the competent people I know are all seizing this unique opportunity to be productive, to get caught up on projects and start new ones. We’re running around like Quicksilver while the rest of the world is on Pause: https://www.youtube.com/watch?v=PMp_5HtO-aE.

On top of my standard workload writing code daily and working on my next book for Anthony Curtis, my publisher, I’ve added several activities to fill the extra time the lockdown has gifted me. As Kevin Garnett famously said: “I take a lot of pride in my craft. I work really hard on my craft every day, and I’m a true professional.” Here are some specific recommendations on what to do:

  1. Wash your hands frequently. Real APs use soap. Fake APs have the misconception that while soap will mechanically remove the virus by making it slip-and-slide down the drain, sanitizer will chemically kill it, or that soap is recommended as a cost issue. Wrong! Soap does not just wash the virus away; soap chemically kills the virus. Please read https://www.vox.com/science-and-health/2020/3/11/21173187/coronavirus-covid-19-hand-washing-sanitizer-compared-soap-is-dope
  2. Watch a movie. I watched Inside the Edge, a cool card-counting documentary by KC and Chris Buddy. It turns out IMDB and RottenTomatoes list me as part of the cast. Who knew? It’s a ton of work to make a movie (or write a book), so I hope they get some views beyond the AP community. For about three seconds, this movie made me want to count cards. I wish I had KC’s stomach.
  3. Lose weight. I’m considering getting P90X to turn this into a fun project. For me, the lockdown has forced a certain amount of deliberation on my food acquisition. Gone are the relief-dealer snacks that caused me to balloon in recent years. Combined with daily exercise, I’ve lost 3 pounds so far, with my goal of 12 in sight if the lockdown lasts long enough. I wish I had KC’s stomach.
  4. Learn a language. Visit http://babbel.com, pick the language you always wished you could speak, and one month into this lockdown, you could be speaking it well above tourist level.
  5. Learn a language. Visit http://khanacademy.org, pick the language you always wished you could code, and one month into this lockdown, you could write a Three Card Poker simulator.
  6. Read a book. I read The 21st-Century Card Counter, by Colin Jones. It’s great, I give it an A. I’ll have much, much more to say about it later. For about seven seconds, this book made me want to count cards. I might have given it an A+ if the subtitle had been “A Pro’s Approach to Beating Today’s Blackjack.” It irritates me that a lot of APs (and teammates!) are going to skip this book and miss out.
  7. Work on your game. If you’re a poker player, you can be reading books, using software, playing online. If you’re an aspiring counter, you can be learning at https://www.blackjackapprenticeship.com/. If you’re a hole-carder, you can be studying your Paints. Now is the part of the movie when you’re up in the mountains learning kung fu before you get unleashed on the world to exact revenge.
  8. Write a blog post.
  9. Comment on a blog post!
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Build A Wall!

Mr. B, a highly successful AP who doesn’t play casino table games, said to me over lunch in a casino coffee shop, “Why don’t they fix everything? If I ran the casino, I would just make it so that no game is beatable!” I’m sure you would try, B! It’s a fair question, but the full answer goes beyond game protection.

Let’s start with the idea of complete game protection. It’s a unicorn. First of all, it’s not even an appropriate objective. Though some casinos actually do have a pathological drive to thwart all APs, that’s just biting off your nose to spite your face. The real goal is profit maximization. The most random shuffle, which would thwart many AP moves, is not as profitable as a much faster shuffle that may occasionally be beaten by a highly skilled AP. Thorough background checks on every person walking into the casino would shut down some APs, but would create a major discouragement to the thousands of degenerates who want to gamble right now! London’s style of casino management is stupid. A zero tolerance policy is not optimal.

Even if a casino wanted to stop every AP, they couldn’t. Casinos have to play the hand they’ve been dealt. Their employee pool consists of people who are less educated and under-incentivized relative to the top APs who are trying to beat the games. Think about it. Casino employees universally believe that the idiot at third base is killing the table by taking the dealer’s bust card. These are people who believe that simply by virtue of a big bankroll and proper money management, a player can beat the games. Ackkk!

If a new casino opens up in Pennsylvania, there are no local employees who have the experience of the long-time Vegas pros who are about to walk in to whack the games. These employees will not know every AP method to beat the games, and it’s not their job to know. Even a Table Games Manager is not a game-protection specialist. A Table Games Manager has to do many things, while APs specialize. There are always new casinos, new employees, new games, new equipment, and new circumstances that make it impossible for a casino to anticipate and thwart every new method of beating a game.

My crew recently found a new game in a casino. The game gave the basic-strategy player an edge of 10.6%, and this was the stingier incarnation (the first gave an edge over 15%). Since the game was new and unique, the casino had no one to turn to for answers or to check the inventor’s math, and the game died a horrible death. Next!

But the real reason that it is difficult to thwart all AP activity is not related to game protection, but rather game design. Suppose that the casinos actually want to provide some entertainment value while they suck every penny from a gambler’s life savings (I said “suppose”!) In that case, they probably want the game to involve some playing decisions. (Obviously, the success of three-reel slots and baccarat shows that playing decisions are not necessarily critical to provide entertainment value. Addictive drugs are entertaining.)
Furthermore, they probably want the game to give the players an edge in the ballpark of -4% (fast games, such as blackjack and Casino War, can make money for the casino even with edges in the -0.5% to -2.5% range). Here’s the key question: Given that there are playing decisions to make within the game, what is the gap between the typical gambler’s edge and the expert player’s edge?

If the game involves tricky consequential decisions, then the expert player’s edge might be 20% higher than the gambler’s edge. But if the casino wants the masses to be playing at -4%, then it means the expert is now at +16%. If we were to make the payouts stingier, to put an expert at breakeven, then the gambler would be at -20%. At that level, the gambler probably gets gutted too quickly, and the game won’t be popular. The zero-tolerance policy to thwart the expert makes the game unpalatable to the thousands of regular gamblers.

You’ve got to give the fish some play for their money. Fantasy sports websites started to see this problem. The pros were gutting the fish so efficiently that the fish lost interest, and the regulators started questioning the equity of it all.

So the key in game design is to offer a set of decisions where the range from the smart to the stupid is not too extreme, or to offer decisions that provide entertainment, but which are completely inconsequential in the game, and which are meaningless in terms of EV. For instance, in Rock, Paper, Scissors, the player has a choice, but a meaningless one if measured by EV. Likewise, choosing Banker vs. Player in baccarat is a relatively inconsequential decision, but one which receives more human scrutiny each day than the debate over climate change.

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Are Women the Dutch Book?

Last week, as part of the celebration for International Women’s Day (March 8), a statue of a defiant girl staring down the Wall Street bull appeared. Count me among those who love the statue and hope it will stay. It is no secret that women are under-represented in many fields, including the AP world, as I discussed in an earlier post. Some APs have floated the idea that if the casino’s old-boy network underestimates the skills of women, women might actually have a strategic advantage relative to their fellow male APs. These ringer women will get away with murder, and will make huge profits before they are even suspected. Well, that’s the theory at least, but are women the Dutch Book? Continue reading Are Women the Dutch Book?

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Sydney Phillips, Come Play Blackjack!

Sydney Phillips, a 7th-grader at St. Theresa’s private Catholic school in New Jersey, wanted to play on the boys basketball team after the girls team was discontinued. After the school said no, Sydney’s dad sued. So the school just expelled Sydney, and her sister, too, via a snotty letter! Unfair! Am I the only one whose blood is boiling right now? Sydney, if you need a summer job in six years, look us up! Continue reading Sydney Phillips, Come Play Blackjack!

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Legal Musings: “Making a Bet After the Outcome is Known”

With all the casino cheating going on these days (see my previous two-part post), casinos have stepped up their game. Not only do they cheat you by not paying when you win, but they strengthen the move by enlisting the local district attorney to extort you. The way it works is that the casino doesn’t pay. Simultaneously, they get the DA to intimidate the players by filing charges relating to the game, or threatening to file charges. A law-abiding AP is terrified by criminal charges, so it’s a no-brainer to accept the implicit deal — virtually always available — to have the DA drop the charges, and let the casino keep the money. Continue reading Legal Musings: “Making a Bet After the Outcome is Known”

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Six-and-a-Half Little Words

I was having my morning bagel at the coffee shop when I saw two boys sitting at a table waiting on their parents, who were in line. The older boy was 7 or 8 years old, and he was teaching some card game to his little brother, who looked 4 years old, 5 max. Continue reading Six-and-a-Half Little Words

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“That Place is a Dump!”

A friend recently asked me what casinos in the US would be worth visiting, given her desire to gamble and discover new places. I often get that question when people hear that I’m a card player. What’s the best casino you’ve been to? Where should I stay when I go to Vegas? Do you like Casino X? Continue reading “That Place is a Dump!”