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March-April 2001
Classic Casino Capers
by Frank Rosenthal
August 5th, 1966 the Las Vegas strip makes way for Caesar. In a majestic Greek-Roman style Caesars Palace hotel and casino made it's entry into the Silver State. Some of the local journeymen were predicting doomsday for the Palace, citing inexperienced operators, and an industry that appeared to be over built. How'd you like to have those experts handling your portfolio? The elegant Palace was a bases-loaded homerun from day one, an instant success, and they've been chuckling all the way to the bank ever since. I was an invited guest for the grand opening, and enjoyed a close personal relationship with one of the original three founders. Jerry Zarowitz, better known as Jerry Z, or Zorro, the starting quarterback. Bright, visionary, and a born leader who understood administration and organization at a very advanced level. "Casino," was not however one of Zorro's strengths? Nate Jacobsen was the Palace President, and boasted an impressive resume as World class insurance executive from Baltimore. Jay Sarno, was the guru of fountains, splash, and unique décor. He also created and designed the now famous "Circus-Circus." Some contend that all you need is to stack the house with modern-day one-armed bandits, the most popular table games, and the rest will take care of itself. Casino knowledge is not a pre requisite for success. I would agree only in part, adding my view that operators who thoroughly understand the intricate mechanics of the games have a much greater opportunity to maximize the bottom line, and protect the integrity of the property.
My next trip to Vegas was during the year-end holiday season. New Years Eve, room, food and beverage, compliments of Caesar. It was the hottest ticket in town. Sold out from valet parking, and throughout all of the public areas surrounding the luxurious oval casino. The bosses were glowing, shaking hands, and preparing to toast in the New Year. Shortly before midnight my friends and I gathered at the Galleria lounge overlooking the entire casino somewhat in awe of the black-tie crowd. The "High Rollers" with matching credit lines were in a shooting mood and the ladies of the evening were stunning and readily available if the price was right! The crap tables were unusually active, and unbeknown to Caesars a game plan to heist the casino was under way. No guns, rifles, or phony dice. Just a few pit bosses and their hand picked agents working the tables in an assortment of scam. Unsigned and unsecured markers, shuffling chips to outside agents, moving losers to winners in and around the dealers. The casino cashiers should have been able to recognize the unusual amount of traffic and cash outs. When the smoke finally cleared and the caper unfolded the facts marched forward. The scam began around 8 PM and continued uninterrupted right through the New Year and shutdown about 3 AM. Estimated loss; $750.000… One might say, where was the shift boss, the casino manager, the eye in sky, and all those held with the responsibility for taking care of Ranch? Celebrating, patting each other on the back, and looking cool. It's all part of Sin City, then and now. Oh yes, Caesar survived. A few heads rolled, the agents were identified and barred. No report was filed. Like Zorro said; Frank, only a sucker holler's copper.
1969… I was relaxing at home in the Las Vegas Country Club, and just about ready to call it a day. About 1 AM, the phone rang. "Frank, I need 50 large, and I need it quick" I said, "I'm not looking to gamble, what's up?" "Don't worry, no risk, just bring the cash and meet me in the lounge of the Hilton." The caller wasn't an ordinary or casual friend. At the time he was my alter ego. I freshened up and drove over to Paradise Road, which was 5 minutes from my home. My buddy was standing at entrance to the casino partially disguised. I held a small briefcase with $50,000 in Ben Franklin's. We slipped over to the lounge, and I handed him the satchel, and inquired. "Is this a rehearsal for Halloween? "Don't be wiseguy, take 20, walk over to the Baccarat pit and follow the lead of the guy with the cigar and a white cowboy hat." "When you see me get up, it's over." Cash ou" t, and I'll meet you in the back parking lot." I said, "think I'll pass, good luck." Time was running short; my friend casually strolled over to the Baccarat pit with the Lone Ranger. Fifteen minutes later they're up $75,000. Everything looked cool. The casino bosses appeared relaxed. When the shoe broke I thought that would signal adios. I was wrong! The next shoe was ready. Winner after winner with a few losers in between. About midway through the shoe, the white hat cowboy placed $2,000.00 on the tie. So did my friend That pays 8 to 1 if it comes. It did! Add $32,000 and counting. I figured it was time for me to hit the road and head on back home before security swooped in. About an hour or so later the phone rang. "Okay to stop by and drop off your 50?" "Sure, thought you might need a bondsmen, glad you didn't." Final tally. $275, 000. "All's well that ends well."
Classic!
Kentucky is World renowned for racing thoroughbreds, blue grass, and the white haired (KFC) Colonel. In the early 1980's a busted Louisville ex-used car salesmen landed in Las Vegas. Soon thereafter that same Louisville slugger added his name to the Rich & Famous. Billy Walters, the "Computer Wizards" turned the sportsbook industry into their own private empire. That's been well documented, so we'll move on and into the greatest takeoff in the history of casino gaming. Walters was known to be a two-fisted drinker, with the heart of a lion. He became a casino shooter, subject to huge dumps when he was steaming or wobbly. Favorite hangout, Binions Horseshoe in downtown Las Vegas. It didn't take BW long to strike up a relationship with SteveWynn, former owner of the Golden Nugget, Mirage, and Bellagio hotel casinos. They were golfing pals, and became quite chummy. Steve was seasoned and sharp, but badly overmatched, unsuspecting, and up against a master magician with a bag of angles and tricks. One evening BW dropped in at the Horseshoe to wish Benny Binion a happy birthday. He also lost $1 million playing 21, or did he? Word travels quickly in Las Vegas, and Steve Wynn from the downtown Golden Nugget took due notice. The bait was set. Walters was heading to Pittsburgh to pick up $1 million, and told Steve that he wanted to stop over in Atlantic City for a little (R&R) rest and recuperation. If Steve would bar the double zero on the Roulette Wheel, Billy was willing to take 'em on. That type of an arrangement while uncommon to most was not a first. The casino still maintains about a 2.25% advantage. Steve agreed, and Billy landed at the Atlantic City Golden Nugget with 1 million in cash that was placed in safekeeping. As it turned out the Atlantic City Gaming Commission refused to allow the Nugget to proceed with their friendly hospitality. All bets were off, but Billy decided to try his luck at 21. Backfired. Walters under the influence and persuasion of Kentucky Bourbon lost one million bucks. Advantage, Golden Nugget. A short time later Steve and Billy agreed to record and note the double zero as a no-go. This was a private arrangement, man-to man on a handshake. Walters deposited $2 million in cash into the Atlantic City Golden Nuggets casinos cashier. Steve figured a slow but sure grind would eventually result in a casino knockout. His math was right, the end result was wrong. In less than 48 hours on a private wheel BW cashed out $3.8 million and headed back home with the $5.8 million. The GN sent the wheel to "NASA" to be analyzed for a specific bias. BW had used the same 5 numbers during the entire play. NASA determined that while the wheel may have had a slight bias, Walters "winning" numbers were not included! Game, Set, Match. Winner, Walters. The honeymoon was over. Steve barred Billy from all of his properties, just a little bit late.
Footnote:
I was just recently reminded that Steve Wynn, my former employer, Allen Glick, and I were together one friendly afternoon appearing before the Nevada Gaming Policy Board. Steve inquired as to our theory regarding "Roulette" and potential bias? I recall having versed him on the subject by stating that "all wheels become susceptible to bias, and there are several other angles that a few organized bandits were using in order to trump the casinos. "If you're not careful you'll be flirting with danger, and you could get hammered." He thanked us kindly, but apparently forgot? Tough to get a square shake from any used car salesman, even on your own turf!
You can bet on it!
Good Luck,
Frank Rosenthal
March-April 2001
Classic Casino Capers
by Frank Rosenthal
August 5th, 1966 the Las Vegas strip makes way for Caesar. In a majestic Greek-Roman style Caesars Palace hotel and casino made it's entry into the Silver State. Some of the local journeymen were predicting doomsday for the Palace, citing inexperienced operators, and an industry that appeared to be over built. How'd you like to have those experts handling your portfolio? The elegant Palace was a bases-loaded homerun from day one, an instant success, and they've been chuckling all the way to the bank ever since. I was an invited guest for the grand opening, and enjoyed a close personal relationship with one of the original three founders. Jerry Zarowitz, better known as Jerry Z, or Zorro, the starting quarterback. Bright, visionary, and a born leader who understood administration and organization at a very advanced level. "Casino," was not however one of Zorro's strengths? Nate Jacobsen was the Palace President, and boasted an impressive resume as World class insurance executive from Baltimore. Jay Sarno, was the guru of fountains, splash, and unique décor. He also created and designed the now famous "Circus-Circus." Some contend that all you need is to stack the house with modern-day one-armed bandits, the most popular table games, and the rest will take care of itself. Casino knowledge is not a pre requisite for success. I would agree only in part, adding my view that operators who thoroughly understand the intricate mechanics of the games have a much greater opportunity to maximize the bottom line, and protect the integrity of the property.
My next trip to Vegas was during the year-end holiday season. New Years Eve, room, food and beverage, compliments of Caesar. It was the hottest ticket in town. Sold out from valet parking, and throughout all of the public areas surrounding the luxurious oval casino. The bosses were glowing, shaking hands, and preparing to toast in the New Year. Shortly before midnight my friends and I gathered at the Galleria lounge overlooking the entire casino somewhat in awe of the black-tie crowd. The "High Rollers" with matching credit lines were in a shooting mood and the ladies of the evening were stunning and readily available if the price was right! The crap tables were unusually active, and unbeknown to Caesars a game plan to heist the casino was under way. No guns, rifles, or phony dice. Just a few pit bosses and their hand picked agents working the tables in an assortment of scam. Unsigned and unsecured markers, shuffling chips to outside agents, moving losers to winners in and around the dealers. The casino cashiers should have been able to recognize the unusual amount of traffic and cash outs. When the smoke finally cleared and the caper unfolded the facts marched forward. The scam began around 8 PM and continued uninterrupted right through the New Year and shutdown about 3 AM. Estimated loss; $750.000… One might say, where was the shift boss, the casino manager, the eye in sky, and all those held with the responsibility for taking care of Ranch? Celebrating, patting each other on the back, and looking cool. It's all part of Sin City, then and now. Oh yes, Caesar survived. A few heads rolled, the agents were identified and barred. No report was filed. Like Zorro said; Frank, only a sucker holler's copper.
1969… I was relaxing at home in the Las Vegas Country Club, and just about ready to call it a day. About 1 AM, the phone rang. "Frank, I need 50 large, and I need it quick" I said, "I'm not looking to gamble, what's up?" "Don't worry, no risk, just bring the cash and meet me in the lounge of the Hilton." The caller wasn't an ordinary or casual friend. At the time he was my alter ego. I freshened up and drove over to Paradise Road, which was 5 minutes from my home. My buddy was standing at entrance to the casino partially disguised. I held a small briefcase with $50,000 in Ben Franklin's. We slipped over to the lounge, and I handed him the satchel, and inquired. "Is this a rehearsal for Halloween? "Don't be wiseguy, take 20, walk over to the Baccarat pit and follow the lead of the guy with the cigar and a white cowboy hat." "When you see me get up, it's over." Cash ou" t, and I'll meet you in the back parking lot." I said, "think I'll pass, good luck." Time was running short; my friend casually strolled over to the Baccarat pit with the Lone Ranger. Fifteen minutes later they're up $75,000. Everything looked cool. The casino bosses appeared relaxed. When the shoe broke I thought that would signal adios. I was wrong! The next shoe was ready. Winner after winner with a few losers in between. About midway through the shoe, the white hat cowboy placed $2,000.00 on the tie. So did my friend That pays 8 to 1 if it comes. It did! Add $32,000 and counting. I figured it was time for me to hit the road and head on back home before security swooped in. About an hour or so later the phone rang. "Okay to stop by and drop off your 50?" "Sure, thought you might need a bondsmen, glad you didn't." Final tally. $275, 000. "All's well that ends well."
Classic!
Kentucky is World renowned for racing thoroughbreds, blue grass, and the white haired (KFC) Colonel. In the early 1980's a busted Louisville ex-used car salesmen landed in Las Vegas. Soon thereafter that same Louisville slugger added his name to the Rich & Famous. Billy Walters, the "Computer Wizards" turned the sportsbook industry into their own private empire. That's been well documented, so we'll move on and into the greatest takeoff in the history of casino gaming. Walters was known to be a two-fisted drinker, with the heart of a lion. He became a casino shooter, subject to huge dumps when he was steaming or wobbly. Favorite hangout, Binions Horseshoe in downtown Las Vegas. It didn't take BW long to strike up a relationship with SteveWynn, former owner of the Golden Nugget, Mirage, and Bellagio hotel casinos. They were golfing pals, and became quite chummy. Steve was seasoned and sharp, but badly overmatched, unsuspecting, and up against a master magician with a bag of angles and tricks. One evening BW dropped in at the Horseshoe to wish Benny Binion a happy birthday. He also lost $1 million playing 21, or did he? Word travels quickly in Las Vegas, and Steve Wynn from the downtown Golden Nugget took due notice. The bait was set. Walters was heading to Pittsburgh to pick up $1 million, and told Steve that he wanted to stop over in Atlantic City for a little (R&R) rest and recuperation. If Steve would bar the double zero on the Roulette Wheel, Billy was willing to take 'em on. That type of an arrangement while uncommon to most was not a first. The casino still maintains about a 2.25% advantage. Steve agreed, and Billy landed at the Atlantic City Golden Nugget with 1 million in cash that was placed in safekeeping. As it turned out the Atlantic City Gaming Commission refused to allow the Nugget to proceed with their friendly hospitality. All bets were off, but Billy decided to try his luck at 21. Backfired. Walters under the influence and persuasion of Kentucky Bourbon lost one million bucks. Advantage, Golden Nugget. A short time later Steve and Billy agreed to record and note the double zero as a no-go. This was a private arrangement, man-to man on a handshake. Walters deposited $2 million in cash into the Atlantic City Golden Nuggets casinos cashier. Steve figured a slow but sure grind would eventually result in a casino knockout. His math was right, the end result was wrong. In less than 48 hours on a private wheel BW cashed out $3.8 million and headed back home with the $5.8 million. The GN sent the wheel to "NASA" to be analyzed for a specific bias. BW had used the same 5 numbers during the entire play. NASA determined that while the wheel may have had a slight bias, Walters "winning" numbers were not included! Game, Set, Match. Winner, Walters. The honeymoon was over. Steve barred Billy from all of his properties, just a little bit late.
Footnote:
I was just recently reminded that Steve Wynn, my former employer, Allen Glick, and I were together one friendly afternoon appearing before the Nevada Gaming Policy Board. Steve inquired as to our theory regarding "Roulette" and potential bias? I recall having versed him on the subject by stating that "all wheels become susceptible to bias, and there are several other angles that a few organized bandits were using in order to trump the casinos. "If you're not careful you'll be flirting with danger, and you could get hammered." He thanked us kindly, but apparently forgot? Tough to get a square shake from any used car salesman, even on your own turf!
You can bet on it!
Good Luck,
Frank Rosenthal