 The thing about beating a casino is this place set up this game, they made the rules, they provide the equipment, they provide the dealer, and they're basically saying, come on in and try to beat us. Anytime there is an opportunity, someone is out there that's going to try and take advantage of that opportunity. Whether that's a poker table, a slot machine, or a table game, we're going to know who you are. If you're a bad guy. If you're not a bad guy, I don't care who you are. But if you're the bad guy, we're going to catch you. Always been interested in finding ways to make money by playing games or basically ways to make money without actually getting a job. There's a lot of work to beating games, an awful lot of work. People who get paid to catch bad guys are getting paid whether they catch them or not. The cheats don't get paid unless they figure it out. So they're motivated. In 1962, the only state in the United States that allowed gambling was Nevada. It was a much smaller industry, a much smaller business, much more run by the mob and kind of shady characters. There was a lot of cheating that went on. In 1962, Thorpe wrote a book explaining how players could use this card counting system that he devised to actually get an advantage over the house. And it was the first book that actually gave players an edge at the game of blackjack. Suddenly when people learned there was a way to beat a casino game, everybody wanted to do it. And the casinos just made money hand over fist because people couldn't do it. Advantage players are not cheats. So we don't treat them like cheats. I've been an advantage player. I've played blackjack, whole card, I've card counted. I don't do it anymore just because I don't have the time or the bankroll. My wife and daughter have seen to that. I'm going to give you guys a little tour of some of the gadgets and devices that cheaters have used throughout history to win money at poker, blackjack, craps, other card and dice games all over the world. This probably won more money than any other single device in history with the exception of marked cards. It's a chip cup. That's not really a stack of chips. It's a hollow shell that chips can hide inside. But it is a device that uses the Trojan horse principle and allows us to shuttle money back and forth across the table. These are actually weighted dice. You can't really hear a difference when they roll. If you handle dice a lot, you could probably feel a difference. I can tell when I pick these up. Instantly I know that they're loaded. I don't necessarily know what they're loaded for, but I know that they're heavier than a three quarter inch casino dice should be. A lot of the stuff I have in this room may have been used in the casino world at one time, but these days the private game world is where most of the money is as far as cheaters are concerned. Most cheaters just aren't willing to go up against the modern surveillance systems and the modern security devices that they have in the casino. This is our surveillance room. We're pretty proud of the room. We've done a lot of things here that are kind of innovative. We've been open three years, but we're still pushing the envelope on the new things we bring in. This is the future right here, and this is just the beginning of the future with these cameras. So this camera goes back seven days, and it's a forensic tool. What we use it for is to follow people who were here three days ago, five days ago, seven days ago. It doesn't matter when they were here. As long as we have the video, we're going to be able to track every step they made in this casino with just about 50 cameras. So wherever that person's going, we'll follow them, and look at the shot we have there. And there's other things we can do then. The facial recognition technology has pushed OCR even further than we thought. We can actually read the cards now. The suits, you saw the 1080p camera. We can see it with our human eye, and so can software. So I'll be able to track the skill level of every Blackjack player that walks into this building. That's what's coming next. We do have staff that monitor continually what's going on with technology, what's going on with risks with technology right now, and what are methods of penetration. We do have ethical hackers on staff who stay conversant in that particular area just to stay on top of, you know, could it be possible to hack into Vegas. At present, I'm not aware of a significant presence of hackers, and hackers, you know, folks from outside trying to remotely perform some nefarious activity on a gaming system. The rings of cheats that we typically see involve the physical realm, where you have people trying to take advantage of the slot machine itself. That's typical. Fortunately, I believe the gaming devices themselves are pretty bulletproof, and that it requires a significant level of collusion to do anything with a gaming device. So we have over 700 fixed cameras at Arian, over 350 PTZs, and you can see they're all focused primarily on games because that's what I'm interested in. If someone's going to beat us, that's where the money is. That's where I've got to have my focus. How about Baccarat? What we're looking for there is we look for passposting. We look for a lot of different things here. We look for the bets being switched, which we've caught at casinos. We look for players introducing their own cards, perhaps. We look for players, dealers doing a false shuffle, like the Tran organization you've probably heard about. We look for players with a camera in their palm that will fan the cards when they cut and then gather the sequence of the cards. And then they download that into their iPhone, come back a few minutes later with all the data and they know how to bet every hand. 20 hands in a row, they win every hand. It's not just the cameras, it's the data. And cameras now are data. So it's all data. It's just learning to understand that data is important. We're here at the Consumer Electronics Show in Las Vegas, Nevada. We're about to take a walk through on the showroom floor and see what kind of objects or devices we can find that could be used to cheat at gambling. So when I look at something like this, I don't see a cheating device yet. But I see a cheating device a couple of years from now. And maybe there's a company out there that's already got one. Can we get rid of these wires and can we build it into the frame of the glasses? Because once you've done that, it's there. And now you have some potential. Because now all you're doing is filming something. Gin rummy, bridge, poker, blackjack, games where our decisions really matter. All you're talking about at the end of the day now is information. If I know your whole cards, I'm going to beat you. If I know what's coming on the flop, I'm going to beat you. So it's all information transfer. And that's all everything in this room does is move information from one place to another. Information management is all it is at the end of the day. I've had a lot of people ask me what draws me to all of this stuff. And at the end of the day, there is some sort of kind of cool James Bond and Q quality to some of these devices. I think most of us have seen a James Bond movie where Desmond Llewellyn or whoever is playing Q these days says, pay attention 007, and he shows him the watch with the laser beam. And there's something in all of us that kind of goes, I'd like to have one of those. And you kind of have to leverage that with the fact that most of this stuff has been designed to rip people off. So I don't necessarily approve of the morality of these devices, but I approve of the ingenuity of these devices. I think most people feel that if you can find a way to beat a casino, more power to you. Most people respect that. It doesn't matter who they are. We're never going to be ahead. That's just the way it is. The cheats may succeed, but once they do it, then we go full in. Anyway, if it happened at another property, we're going to know everything about it and stop it here. I think almost everybody has a certain amount of compulsive gamble in them. I mean, life itself is a gamble. You get out of bed in the morning, it's a gamble. You have no idea. You know, if you go find a new job, that's a gamble. You get married, it's a gamble. You have kids, it's a gamble. You buy a dog, it's a gamble. Everything you do in life is gambling. It's not the same as drinking, where you don't have to drink to live. You have to gamble to live. You have to take a chance. You've got to take a risk. And anybody who thinks like, you know, yeah, but what if I could do it good enough to make money? Everybody would find that attractive. It's like, gee, that's like the ideal lifestyle. I can go play cards and go home with money in my pocket.