Discover Awesome Gambling Scandals
The gambling industry has been marred by a history of scandalous incidents where unscrupulous individuals sought to profit through illicit means. These episodes not only resulted in significant financial losses for casinos but also led to legal repercussions for the perpetrators, casting a shadow over the industry’s reputation. Here, we delve into nine noteworthy cheating scandals that have rocked the world of gambling.
- Tommy Glenn Carmichael’s Slot Machine Rigging: Tommy Glenn Carmichael employed cunning tactics to rig slot machines and amass millions of dollars from various casinos. His ingenious creations, such as the “monkey’s paw” and the “light wand,” enabled him to manipulate the machines, triggering jackpots at will. Carmichael’s illicit endeavors proved highly profitable until his arrest by the FBI in 2001. Subsequently, he served 326 days in prison, endured three years of probation, and was barred from setting foot in casinos.
- The MIT Blackjack Team’s Card Counting: From the 1970s to the 1990s, the MIT Blackjack Team pioneered advanced card-counting techniques to outwit casinos and accumulate substantial wealth. Comprising students and alumni from esteemed institutions like MIT and Harvard, the group employed systematic, scientific strategies to gain an edge over the house. Under the leadership of Bill Kaplan, the team trained numerous players and reputedly raked in $10 million for themselves and their investors by engaging in legal but frowned-upon methods. Eventually, casinos caught onto their tactics and began excluding team members from gambling.
- Ron Harris’s Slot Machine Manipulation: In the early 1990s, Ron Harris, a software engineer for the Nevada Gaming Control Board, secretly encoded certain slot machines with concealed software switches. These switches triggered enormous jackpots when players inserted coins in a specific sequence. Harris orchestrated this scheme across around 30 machines and enlisted accomplices to play these rigged slots, enabling them to pocket hundreds of thousands of dollars in ill-gotten gains. The criminal activities came to light when one of Harris’s associates was apprehended attempting to manipulate a keno game in Atlantic City. In 1996, Harris pleaded guilty to four counts of slot cheating and received a seven-year prison sentence.
- Louis Colavecchio’s Counterfeit Coins: Louis Colavecchio, famously known as “the Coin,” gained notoriety as a counterfeiter who utilized fake slot-machine coins to amass substantial winnings from Las Vegas casinos, all without wagering genuine money. His illicit activities caught up with him in 1997, resulting in a 27-month federal prison sentence. Astonishingly, when Colavecchio was arrested in Atlantic City, he had a staggering 750 pounds of counterfeit coins in his vehicle.
- John Kane’s Video Poker Exploits: John Kane managed to secure over $500,000 in winnings by exploiting a software glitch in video poker machines across the country. Kane stumbled upon a flaw in the Game King line of video poker machines, allowing him to replay jackpot-winning hands with maximum wagers, resulting in substantial payouts. Although Kane and his accomplice, Andre Nestor, were arrested, federal prosecutors couldn’t substantiate hacking and conspiracy charges, leading to their release.
- William John Brennan’s Mysterious Disappearance: William John Brennan, a former sports book cashier at the Stardust hotel in Las Vegas, inexplicably vanished after leaving the casino with $500,000 in cash and chips. Intriguingly, security cameras failed to capture his exit, leaving the case unresolved nearly three decades later.
- Richard Marcus’s Blackjack and Baccarat Scams: Richard Marcus, once homeless in Las Vegas, turned to cheating casinos after becoming a blackjack and baccarat dealer. He employed tactics such as “past posting” or late betting, enabling him to covertly exchange low-denomination chips for higher-value ones, resulting in substantial winnings. Marcus managed to swindle over $5 million from casinos before being apprehended, although he was never convicted. Today, he works as a casino protection consultant and pens books detailing his exploits.
- Mark William Branco’s Craps Scam: In 2016, Mark William Branco, a Bellagio craps dealer, along with accomplices Jeffrey Martin and Anthony Grant Granito, was arrested for scamming the casino out of more than $1 million. They employed phantom “hop bets” during craps games, defying astronomical odds. Despite their cunning, they were eventually apprehended and ordered to pay restitution. Branco is currently serving a prison sentence and is banned from casinos.
- Cantor Gaming’s Illegal Gambling and Money Laundering Scandal: From 2009 to 2013, Cantor Gaming, now CG Technology, was embroiled in a massive illegal gambling and money laundering scandal. The company knowingly accepted large illegal deposits from out-of-state bettors and processed illicit winnings. Additionally, two illegal bookmakers laundered money through the company. This led to multiple arrests, including that of Michael Colbert, the former director of risk management. In 2016, CG Technology agreed to pay $22.5 million to settle the case. Colbert pleaded guilty in 2013, although his charges were dropped as part of the settlement.
These infamous incidents underscore the lengths to which certain individuals have gone to exploit vulnerabilities within the gambling industry, ultimately resulting in their downfall and legal consequences. These scandals serve as cautionary tales, highlighting the importance of vigilance and integrity within the world of gambling.
Reference Links: 9 Scandals That Rocked the Gambling Industry (businessinsider.com)
