Entries Tagged "gambling"

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Cheating at Professional Poker

Interesting story about someone who is almost certainly cheating at professional poker.

But then I start to see things that seem so obvious, but I wonder whether they aren’t just paranoia after hours and hours of digging into the mystery. Like the fact that he starts wearing a hat that has a strange bulge around the brim — one that vanishes after the game when he’s doing an interview in the booth. Is it a bone-conducting headset, as some online have suggested, sending him messages directly to his inner ear by vibrating on his skull? Of course it is! How could it be anything else? It’s so obvious! Or the fact that he keeps his keys in the same place on the table all the time. Could they contain a secret camera that reads electronic sensors on the cards? I can’t see any other possibility! It is all starting to make sense.

In the end, though, none of this additional evidence is even necessary. The gaggle of online Jim Garrisons have simply picked up more momentum than is required and they can’t stop themselves. The fact is, the mystery was solved a long time ago. It’s just like De Niro’s Ace Rothstein says in Casino when the yokel slot attendant gets hit for three jackpots in a row and tells his boss there was no way for him to know he was being scammed. “Yes there is,” Ace replies. “An infallible way. They won.” According to one poster on TwoPlusTwo, in 69 sessions on Stones Live, Postle has won in 62 of them, for a profit of over $250,000 in 277 hours of play. Given that he plays such a large number of hands, and plays such an erratic and, by his own admission, high-variance style, one would expect to see more, well, variance. His results just aren’t possible even for the best players in the world, which, if he isn’t cheating, he definitely is among. Add to this the fact that it has been alleged that Postle doesn’t play in other nonstreamed live games at Stones, or anywhere else in the Sacramento area, and hasn’t been known to play in any sizable no-limit games anywhere in a long time, and that he always picks up his chips and leaves as soon as the livestream ends. I don’t really need any more evidence than that. If you know poker players, you know that this is the most damning evidence against him. Poker players like to play poker. If any of the poker players I know had the win rate that Mike Postle has, you’d have to pry them up from the table with a crowbar. The guy is making nearly a thousand dollars an hour! He should be wearing adult diapers so he doesn’t have to take a bathroom break and cost himself $250.

This isn’t the first time someone has been accused of cheating because they are simply playing significantly better than computer simulations predict that even the best player would play.

News article. Boing Boing post

Posted on October 9, 2019 at 12:26 PMView Comments

Hacking Slot Machines by Reverse-Engineering the Random Number Generators

Interesting story:

The venture is built on Alex’s talent for reverse engineering the algorithms — known as pseudorandom number generators, or PRNGs — that govern how slot machine games behave. Armed with this knowledge, he can predict when certain games are likeliest to spit out money­insight that he shares with a legion of field agents who do the organization’s grunt work.

These agents roam casinos from Poland to Macau to Peru in search of slots whose PRNGs have been deciphered by Alex. They use phones to record video of a vulnerable machine in action, then transmit the footage to an office in St. Petersburg. There, Alex and his assistants analyze the video to determine when the games’ odds will briefly tilt against the house. They then send timing data to a custom app on an agent’s phone; this data causes the phones to vibrate a split second before the agent should press the “Spin” button. By using these cues to beat slots in multiple casinos, a four-person team can earn more than $250,000 a week.

It’s an interesting article; I have no idea how much of it is true.

The sad part is that the slot-machine vulnerability is so easy to fix. Although the article says that “writing such algorithms requires tremendous mathematical skill,” it’s really only true that designing the algorithms requires that skill. Using any secure encryption algorithm or hash function as a PRNG is trivially easy. And there’s no reason why the system can’t be designed with a real RNG. There is some randomness in the system somewhere, and it can be added into the mix as well. The programmers can use a well-designed algorithm, like my own Fortuna, but even something less well-thought-out is likely to foil this attack.

Posted on August 7, 2017 at 6:00 AMView Comments

Predicting a Slot Machine's PRNG

Wired is reporting on a new slot machine hack. A Russian group has reverse-engineered a particular brand of slot machine — from Austrian company Novomatic — and can simulate and predict the pseudo-random number generator.

The cell phones from Pechanga, combined with intelligence from investigations in Missouri and Europe, revealed key details. According to Willy Allison, a Las Vegas­-based casino security consultant who has been tracking the Russian scam for years, the operatives use their phones to record about two dozen spins on a game they aim to cheat. They upload that footage to a technical staff in St. Petersburg, who analyze the video and calculate the machine’s pattern based on what they know about the model’s pseudorandom number generator. Finally, the St. Petersburg team transmits a list of timing markers to a custom app on the operative’s phone; those markers cause the handset to vibrate roughly 0.25 seconds before the operative should press the spin button.

“The normal reaction time for a human is about a quarter of a second, which is why they do that,” says Allison, who is also the founder of the annual World Game Protection Conference. The timed spins are not always successful, but they result in far more payouts than a machine normally awards: Individual scammers typically win more than $10,000 per day. (Allison notes that those operatives try to keep their winnings on each machine to less than $1,000, to avoid arousing suspicion.) A four-person team working multiple casinos can earn upwards of $250,000 in a single week.

The easy solution is to use a random-number generator that accepts local entropy, like Fortuna. But there’s probably no way to easily reprogram those old machines.

Posted on February 8, 2017 at 6:48 AMView Comments

Interesting Lottery Terminal Hack

It was a manipulation of the terminals.

The 5 Card Cash game was suspended in November after Connecticut Lottery and state Department of Consumer Protection officials noticed there were more winning tickets than the game’s parameters should have allowed. The game remains suspended.

An investigation determined that some lottery retailers were manipulating lottery machines to print more instant winner tickets and fewer losers….

[…]

An investigator for the Connecticut Lottery determined that terminal operators could slow down their lottery machines by requesting a number of database reports or by entering several requests for lottery game tickets. While those reports were being processed, the operator could enter sales for 5 Card Cash tickets. Before the tickets would print, however, the operator could see on a screen if the tickets were instant winners. If tickets were not winners, the operator could cancel the sale before the tickets printed.

Posted on March 25, 2016 at 6:31 AMView Comments

The Limits of Police Subterfuge

“The next time you call for assistance because the Internet service in your home is not working, the ‘technician’ who comes to your door may actually be an undercover government agent. He will have secretly disconnected the service, knowing that you will naturally call for help and — ­when he shows up at your door, impersonating a technician­ — let him in. He will walk through each room of your house, claiming to diagnose the problem. Actually, he will be videotaping everything (and everyone) inside. He will have no reason to suspect you have broken the law, much less probable cause to obtain a search warrant. But that makes no difference, because by letting him in, you will have ‘consented’ to an intrusive search of your home.”

This chilling scenario is the first paragraph of a motion to suppress evidence gathered by the police in exactly this manner, from a hotel room. Unbelievably, this isn’t a story from some totalitarian government on the other side of an ocean. This happened in the United States, and by the FBI. Eventually — I’m sure there will be appeals — higher U.S. courts will decide whether this sort of practice is legal. If it is, the country will slide even further into a society where the police have even more unchecked power than they already possess.

The facts are these. In June, Two wealthy Macau residents stayed at Caesar’s Palace in Las Vegas. The hotel suspected that they were running an illegal gambling operation out of their room. They enlisted the police and the FBI, but could not provide enough evidence for them to get a warrant. So instead they repeatedly cut the guests’ Internet connection. When the guests complained to the hotel, FBI agents wearing hidden cameras and recorders pretended to be Internet repair technicians and convinced the guests to let them in. They filmed and recorded everything under the pretense of fixing the Internet, and then used the information collected from that to get an actual search warrant. To make matters even worse, they lied to the judge about how they got their evidence.

The FBI claims that their actions are no different from any conventional sting operation. For example, an undercover policeman can legitimately look around and report on what he sees when he invited into a suspect’s home under the pretext of trying to buy drugs. But there are two very important differences: one of consent, and the other of trust. The former is easier to see in this specific instance, but the latter is much more important for society.

You can’t give consent to something you don’t know and understand. The FBI agents did not enter the hotel room under the pretext of making an illegal bet. They entered under a false pretext, and relied on that for consent of their true mission. That makes things different. The occupants of the hotel room didn’t realize who they were giving access to, and they didn’t know their intentions. The FBI knew this would be a problem. According to the New York Times, “a federal prosecutor had initially warned the agents not to use trickery because of the ‘consent issue.’ In fact, a previous ruse by agents had failed when a person in one of the rooms refused to let them in.” Claiming that a person granting an Internet technician access is consenting to a police search makes no sense, and is no different than one of those “click through” Internet license agreements that you didn’t read saying one thing and while meaning another. It’s not consent in any meaningful sense of the term.

Far more important is the matter of trust. Trust is central to how a society functions. No one, not even the most hardened survivalists who live in backwoods log cabins, can do everything by themselves. Humans need help from each other, and most of us need a lot of help from each other. And that requires trust. Many Americans’ homes, for example, are filled with systems that require outside technical expertise when they break: phone, cable, Internet, power, heat, water. Citizens need to trust each other enough to give them access to their hotel rooms, their homes, their cars, their person. Americans simply can’t live any other way.

It cannot be that every time someone allows one of those technicians into our homes they are consenting to a police search. Again from the motion to suppress: “Our lives cannot be private — ­and our personal relationships intimate­ — if each physical connection that links our homes to the outside world doubles as a ready-made excuse for the government to conduct a secret, suspicionless, warrantless search.” The resultant breakdown in trust would be catastrophic. People would not be able to get the assistance they need. Legitimate servicemen would find it much harder to do their job. Everyone would suffer.

It all comes back to the warrant. Through warrants, Americans legitimately grant the police an incredible level of access into our personal lives. This is a reasonable choice because the police need this access in order to solve crimes. But to protect ordinary citizens, the law requires the police to go before a neutral third party and convince them that they have a legitimate reason to demand that access. That neutral third party, a judge, then issues the warrant when he or she is convinced. This check on the police’s power is for Americans’ security, and is an important part of the Constitution.

In recent years, the FBI has been pushing the boundaries of its warrantless investigative powers in disturbing and dangerous ways. It collects phone-call records of millions of innocent people. It uses hacking tools against unknown individuals without warrants. It impersonates legitimate news sites. If the lower court sanctions this particular FBI subterfuge, the matter needs to be taken up — ­and reversed­ — by the Supreme Court.

This essay previously appeared in The Atlantic.

EDITED TO ADD (4/24/2015): A federal court has ruled that the FBI cannot do this.

Posted on December 18, 2014 at 6:57 AMView Comments

Consumer Manipulation

Tim Harford talks about consumer manipulation:

Consider, first, confusion by design: Las Vegas casinos are mazes, carefully crafted to draw players to the slot machines and to keep them there. Casino designers warn against the “yellow brick road” effect of having a clear route through the casino. (One side effect: it takes paramedics a long time to find gamblers in cardiac arrest; as Ms Schüll also documents, it can be tough to get the slot-machine players to assist, or even to make room for, the medical team.)

Most mazes in our economy are metaphorical: the confusion of multi-part tariffs for mobile phones, cable television or electricity. My phone company regularly contacts me to assure me that I am on the cheapest possible plan given my patterns of usage. No doubt this claim can be justified on some narrow technicality but it seems calculated to deceive. Every time I have put it to the test it has proved false.

I recently cancelled a contract with a different provider after some gizmo broke. The company first told me the whole thing was my problem, then at the last moment offered me hundreds of pounds to stay. When your phone company starts using the playbook of an emotionally abusive spouse, this is not a market in good working order.

This is a security story: manipulation vs. manipulation defense. One of my worries about our modern market system is that the manipulators have gotten too good. We need better security — either technical defenses or legal prohibitions — against this manipulation.

EDITED TO ADD (1/23): More about how cellphone companies rip you off.

Posted on January 23, 2014 at 7:03 AMView Comments

Attacking Online Poker Players

This story is about how at least two professional online poker players had their hotel rooms broken into and their computers infected with malware.

I agree with the conclusion:

So, what’s the moral of the story? If you have a laptop that is used to move large amounts of money, take good care of it. Lock the keyboard when you step away. Put it in a safe when you’re not around it, and encrypt the disk to prevent off-line access. Don’t surf the web with it (use another laptop/device for that, they’re relatively cheap). This advice is true whether you’re a poker pro using a laptop for gaming or a business controller in a large company using the computer for wiring a large amount of funds.

Posted on December 16, 2013 at 6:09 AMView Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.