Gambling is a great form of entertainment. Whether online or land-based, gambling sees many fortunate souls claiming big prizes with little risk. However, the world of professional gambling is not for the faint of heart. That’s because it holds much bigger probabilities for loss, especially for gambling greats like poker pro Phil Ivey.
For those of you not in the know, Ivey is a stand out poker player and card expert much like the late Stu Ungar or the legendary Amarillo Slim. Ivey has managed to win ten World Series of Poker bracelets throughout his illustrious career. He also took home major pots against top competition in the world of professional poker.
However, poker-great Ivey saw no tournament action in the U.S. due to a lengthy, years-long gambling scandal that first made headlines back in 2012. Although poker is Ivey’s forte, ironically, the scandal in question does not involve poker at all, but the game of baccarat. The repercussions of the lengthy case has made waves throughout the gambling community. It begged the question “is Phil Ivey the best card player in the world or just a cheat?” For the young poker tour de force, it is not just his money at stake, but his gambling reputation. Planet 7 Online casino has the scoop on the infamous Phil Ivey case.
Cards to Cabo
Growing up in the working class town of Roselle, New Jersey, Ivey learned poker from his grandfather at the local barbershop. As a young man, he worked at the local McDonald’s and garnered the courage to obtain a fake ID. He used it to make the nearly two hour drive from his hometown to play at the poker tables of America’s playground, Atlantic City. Today, Ivey plays poker almost daily, prepping for the grueling 14-hour day marathon sessions at the seven-day WSOP tournament, which takes place each year in Las Vegas.
Known for possessing near clairvoyant card playing abilities and impossible to read tells at the poker tables – Phil Ivey has earned over $23 million in professional winnings from playing poker. He is arguably the best player in the world, with a penchant for taking risks on and off the casino floor. Ivey gambles on everything from World Cup football tournaments at $500,000 a game, to hustling basketball legends like Michael Jordan on the golf course for par. He participates in various side bets at the casinos, and as an avid sports nut, participates in sports betting.
He owns homes in Las Vegas, Cabo San Lucas and Macau, and has an estimated net worth of $100 million from gambling and endorsements. However, our story begins back in New Jersey in Atlantic City, where the man who claims that there is no risk big enough may have bit off more than he could chew.
Scandal at the casino tables
The game of baccarat made famous to mainstream audiences as James Bond’s card game of choice. Baccarat can be found throughout various casinos and gambling halls of the world. Although it still holds an element of posh and mystique, modest versions of the game exist among the casino floors of Vegas and Macau among the large gambling destinations. The scandal in question however pertains to not one, but two high-end casinos, the Borgata in Atlantic City and Crockfords in the chic Mayfair district of London.
Over a four-month period in 2012, Ivey came under fire after he won over $20 million from the luxury casinos playing Punto Banco baccarat. Punto Banco is a variant of baccarat that holds one of the lowest house edges of any game in the casino at 0.8%. It requires no skill to play. The game relies on determining if the winning hand will belong to the dealer (banker), the player, or if the two hands will result in a tie. The object of baccarat is to predict which hand will add up closest to nine based on a point system. In baccarat, a player cannot go over the maximum number of points, or “bust”, like in blackjack.
Edge sorting
Outrage began when the two casinos accused Ivey of a technique known as “edge sorting”. Edge sorting involves reading tiny patterns along the edges of imperfectly cut playing cards in order to predict their value before they are turned. It is extraordinarily method to master, but Ivey was up for a challenge.
What makes the case interesting is that Ivey admitted to having performed edge sorting. He claimed that the tactic is simply a legal form of advantage play, and does not constitute cheating or illegal activity. Experts claim that edge sorting utilized by Ivey gave him a 5-6% edge over the house. This resulted in him walking away with $9.6 million from Borgata over a four-month period. Over two days in London, he won $10.1 million from Crockfords. The latter refused to pay Ivey his winnings, and by 2014, a lengthy legal battle ensued against Ivey by both casinos.
Poker high roller
According to Ivey himself, he used his position as a high roller and premium player to have certain requests granted to him by the casinos in question. Casinos depend on bigtime players like him to stay afloat, because of the massive potential for financial gain. In order to entice such VIPs to play at their establishments, casinos will offer incentives to premium players. Casinos offer complementary room and board, transportation and entertainment, or anything else a VIP may request. In exchange for this, the individual must gamble a predetermined amount on the casino floors.
Ivey wired advances of $3 million and £1 million to Borgata and Crockfords respectively. Ivey’s requests included that the casinos use a particular brand of playing cards and shuffle machine for his games, as well as Asian dealers. Ivey states that the casinos agreed to his every request. This formed a ‘verbal contractual agreement’, which allowed him to gain the upper hand.
Phil Ivey’s accomplice
In addition, Ivey did not act alone, and had an accomplice by the name of Cheng Yin Sun. Sun has been involved in edge sorting scams in the past and has even been banned from some U.S. casinos. She and Ivey placed massive bets and utilized advantage play to take the house. They never physically touched the cards to alter the elements of chance. But they encouraged dealers to perform moves in their favor unknowingly. Their strategy successfully exploited the weaknesses of the house and ended up costing the venues millions.
And to complicate matters, many game protection experts agree that Ivey did not do anything illegal. He did not mark cards or alter wagers such as “past posting” for instance. Ivey simply outsmarted the dealers by claiming superstition, in order to achieve his desired result. Although edge sorting is legal, much like card counting it is heavily discouraged by casinos. Once the lawsuits emerged, the legal system was put into play. Although Ivey was never arrested or formally charged with anything, the casinos cried foul play; accusing him of cheating, and dishonesty. Phil Ivey claimed that he had done nothing wrong, but his accusers begged to differ.
The Ivey Case
The courts of the U.S. and England knew that they were dealing with an unprecedented case. If Ivey had not physically altered the cards and the casinos had agreed to the terms listed beforehand, what constituted as cheating, the mere fact that Ivey had been dishonest?
Prosecutors described the Ivey case as one of the most significant in criminal legislation for a generation. However, Ivey countersued, arguing that his honor and reputation as a gambler was at stake. He added that sting of “cheater” next to his name would be detrimental to his status as a professional player. Therefore, he demanded that he receive his winnings. The various media outlets covered the Ivey case, and was even a feature on the popular television news show “60 Minutes”.
The outcome
The outcome? Ivey was ordered to pay back the $9.6 million in winnings to Borgata casino after a New Jersey court ruled in the casino’s favor. After years of lengthy trial proceedings in England, the UK High Court ruled that Ivey had cheated Crockfords casino. Crockfords casino did not owe the £7.7 million ($10.1 million) in winnings to Ivey.
There was no doubt in the UK court’s mind that the actions of Ivey and Sun interfered with the process of the game. But this was enough to constitute foul play. They added, “What Mr. Ivey did was to stage a carefully planned and executed sting”. U.S. District Judge Noel Hillman ruled that Ivey and his partner did not commit fraud. But they had breached their contract with the Borgata casino, which was grounds to forfeit their winnings.
Consequently, Borgata casino sued the Missouri-based card company Gemaco, responsible for manufacturing the cards. Borgata claimed that the company’s faulty cards led to millions of dollars in losses for the casino. Unfortunately, for Borgata, the New Jersey courts ruled that Gemaco was not accountable for the losses. They would only have to reimburse the casino $27 for the faulty deck of cards used during a particular baccarat game. It was not the last anyone would hear from Ivey however.
A gambling legacy
Most professional gamblers and game protection experts such as Jim Hartley agree that Ivey merely outwitted the casinos. However, he beat them at their own game and made them look bad. In an industry where the land-based casinos are out to get players’ money, here was an instance of a card pro that had overcome those odds and was rubbing their noses in it.
Ivey himself has argued repeatedly that his legacy as a professional player is at stake. In a profession that relies on reputation, the worst thing for him was that the courts in both instances ruled against him in favor of the casinos. With a steady game face, he refuses to go down without a fight, and knows this is one gamble he cannot afford to lose. As for the tables, in 2017, Ivey returned to what he does best by frequenting the numerous high stakes poker tournaments of Macau. He also stated publicly that he would return to WSOP for 2018. In regards to the Borgata ruling, Ivey appealed the New Jersey court’s decision regarding the $9.6 million he must pay back. And the case remains open to this day.
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