WEBVTT

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JACK: [MUSIC] Ah, Vegas; home of swingin’ jazz, drunken mischief, and the dream of getting rich.

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Slot machines all around with the constant echo of people winning money everywhere. But the thing

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is the casino always wins. The machines and the games are built in such a way that in the long

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run the player will eventually lose. Almost every single bet you can place in Vegas has the odds in

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the house’s favor, yet millions of people play, looking for ways they can cheat the system. But

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what if you found a way to actually swing the odds in your favor and let you win whenever you wanted?

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JACK (INTRO): [MUSIC] These are true stories from the dark side

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of the internet. I’m Jack Rhysider. This is Darknet Diaries. [INTRO MUSIC ENDS]

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JACK: For a short while in my life I was a craps dealer in Las Vegas,

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Nevada and it always intrigued me to see the different betting systems people would use,

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thinking they’ve found a method for winning. While walking around the casino floor you can

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see some of these in action. I’ve seen people place a lucky coin on their slot machine or

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wave a special feather in the air on every roll of the dice. I’ve seen people count cards and

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write down all of their spins and outcomes. Each are looking for a way to move that edge

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in their favor to give them a long-term winning strategy. Some people take this very seriously.

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Most of the serious slot machine hackers will purchase a machine and try rigging it at home.

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They play around with adding various objects to the machine to attempt to make it malfunction and

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to spit out cash. There are loads of slot machine hacking devices that exist today.

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One is called the Monkey Paw and it’s a device that has a little light in it that you stick up

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the coin hopper of the machine. This tricks the machine to think that when the payout occurred,

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the coin never fell, thus making another coin fall. A slot thief can steal all the coins

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of the slot machine in just a few minutes. Another common slot machine hacking tool is

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the old EMP. By placing an electromagnetic pulse around certain slot machines it can

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cause the machine to behave abnormally and do things like give you instant credits or

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pay out more than it should. But being caught using devices like this is almost immediate

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prison time. The penalties are harsh and strict and it’s a big risk for thieves.

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[PIANO] John Kane is a virtuoso pianist. Now, at fifty years old,

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he’s been an expert pianist for the last forty years playing for large audiences,

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teaching piano, selling his recordings. He lives in Las Vegas and runs a management consulting firm

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which claims to have thirty of the Fortune 100 companies as his clients. By 2005 John’s

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business was lucrative. He was living in a large house in the northeast end of Vegas.

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In it he has three Steinway grand pianos and one of his hobbies was model railroad trains. One of

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his spare bedrooms showcased an entire miniature town with a model train running through it with

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exquisite attention to detail. But besides loving the piano and building model trains,

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he also loved the thrill of gambling. This went on for years but by 2006 he was severely addicted.

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That year he blew through $500,000 in gambling, often at the Boulder Station Casino. His favorite

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game was video poker. Video poker is a simple yet exciting game. You’re given five cards with

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the option of throwing out any of those cards to get a new one. The goal is to get the best hand

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possible. One can win anywhere from the one cent you put in the machine to thousands of dollars

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on the jackpot. John spent a large amount of time playing a video poker game called Game King made

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by IGT. This was the most popular video slot in Vegas. It contained such games as Deuces Wild,

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Jacks Are Better, Triple Play, and Bonus Poker. His pianist hands would grace the

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buttons of the machine with style and elegance and he would play for hours at

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a time and thousands of games of poker. But [00:05:00] one day something weird happened.

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In April 2009 he was playing the Game King video poker machine at the Freemont Casino

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in downtown Las Vegas. He was trying to change his bet and hit some wrong buttons. [BEEPING]

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All of a sudden his machine was indicating that he had won over $1,000 without even placing a

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bet. He knew right away this wasn’t right and the game malfunctioned on him. His payout was

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so big the casino attendant had to deliver it by hand. He told the attendant he thinks

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that there was an error but the attendant just thought he was joking and paid it anyways. He

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tried replicating the issue. He spent hours more playing and trying to make this strange behavior

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happen again. John phoned a friend. Years earlier John had a gambling friend named Andre Nestor.

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Andre and John met through an AOL chat room for Vegas locals. They shared the same addiction to

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gambling and would often sit side -by-side playing various slots. Andre was thirteen

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years younger than John and worked answering phones for a bank. He made considerably less

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than John but still managed to lose about $20,000 a year gambling for the six years

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he lived in Vegas. After that he called it quits and moved to a quiet town in Pennsylvania where

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he’d only occasionally play the lottery. Andre had been living in Pennsylvania for

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the last two years. John called Andre and told him about this bug he found in the video poker

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machine and that he thinks he might be able to replicate it. Andre was immediate interested. He

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drove to the airport that night and waited all night until the next flight to Vegas.

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John picked Andre up at McCarran airport, grabbed breakfast, and they went right back

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to the Freemont and sat side-by-side on the two Game King video poker machines. John had

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some ideas on how to trigger the bug but he didn’t know for sure how to reliably do it. He explained

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to Andre what he thought was the method and the two got to work looking for the bug. They would

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try various betting strategies, different games, a combination of button pushing, and different

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bet levels. Every now and then they were able to trigger the bug but it wasn’t consistent. The game

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they were playing would let them bet anywhere from one cent to fifty cents a hand. The bug they found

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would let them change their bet after the win so they could play for hours losing only pennies but

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then when a big hand would show up like four of a kind, they could change their bet to fifty cents

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and immediately they’d get the winnings for a fifty cent wager instead of a one cent wager.

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This would result in thousands of dollars for a win like this. After hours of playing side-by-side

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they figured out the exact sequence that would need to be done for an extra-large payout to

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happen. They hit numerous jackpots that night and left to have a celebratory dinner. The two

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started mapping out their plans. Fortunately for them, the Game King video poker machine is very

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popular in Vegas. It’s not only in casinos but it’s also in diners and gas stations

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and pretty much everywhere. They knew if they hit the same machine every night they’d come

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under suspicion. They planned out how they’d make their way across town hitting different casinos.

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John was worried about Andre though. He feared that even if Andre had won a lot of money he’d

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just give it right back on the roulette or blackjack tables. So John asked Andre,

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if you had a million dollars what ten things would you do? And asked Andre to

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really think about it. The two went back to John’s house for the night. They spent

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another day at the Freemont to make sure their strategy worked and sure enough,

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it worked great. [MUSIC] Then they made their way to another casino. Same game,

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same strategy but the exploit didn’t work. They tried numerous other casinos; the Hilton,

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Hard Rock, Luxor, Stratosphere, and Tropicana. None of the Game King video poker games would

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produce the same exploit. They went back to the Freemont but sure enough, it worked great there.

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The two were baffled so Andre decided to head back to the airport and fly back home to Pennsylvania.

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At the airport, Andre lost another $700 gambling at the video poker machines there,

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but Andre still left with $8,000 more than what he came with. John went back to the Freemont and

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sat under the neon signs with the 90s Top 40 music playing and smoke swirling all around,

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and he continued playing poker. He kept winning and kept playing. He kept winning and the slot

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manager noticed the Game King video poker machines were all losing a lot of money

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for the casino. The slot manager told John that they are disabling the Double Up feature on these

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machines. This feature allowed players to double their winnings or lose everything. John was using

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this feature every time he could and the slot manager knew it. John was not too worried that

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the feature would be disabled since it was the bug that would let him win and not the Double

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Up feature but when John returned the next day to play at the Freemont, the bug wouldn’t work.

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John was baffled and he called Andre up to explain. Andre immediately realized the missing

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link to their exploit was the Double Up feature. With it on, the exploit worked and with it off,

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it didn’t. Andre jumped on another plane and headed back to Vegas. The Double Up feature

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on these games had been turned off because many players don’t like that feature but you could

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ask the gaming attendant to enable the feature and [00:10:00] sometimes they’ll do it for you.

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John and Andre went to a new casino and asked the attendant to enable the Double Up feature

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and away they went. Andre started playing and he had four of a kind which awarded him $500.

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He tapped the magic button sequence and shazam, his $500 instantly became a $10,000 jackpot. They

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cracked the code and realized they could go to any casino now and make their money. Their plan

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was working. They were unstoppable. They had almost endless amounts of machines they could

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exploit now, with tens of thousands in jackpot winnings to be had. Andre was looking at a

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whole new life. He had been living on welfare checks and was now dreaming of owning a home,

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buying nice clothes, and giving gifts to his friends. They kept exploiting the

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bug all around town when they stumbled upon an even better version of the bug;

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they found they could trigger the payout twice with the same hand. In fact,

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they could trigger the payout over and over with the same hand without even drawing more cards.

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This would be risky to exploit though, since having the attendant pay out $4,000 over and

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over on the same hand would surely be noticed. They would swap seats when one would hit the

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jackpot like that and then leave the casino. Andre and John had mastered their system. They

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didn’t even see it as gambling anymore. They basically were able to win however much they

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wanted whenever they wanted. Andre worked out he could make $500,000 a day if he really wanted. The

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exploit worked like this; step one, find a Game King video poker machine that allowed different

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betting levels. Step two, ask the slot attendant to enable the Double Up option and be polite and

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courteous as they make the changes. Step three, add money to the machine and select the lowest

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bet level you can. Step four, play with the lowest bet level until you win a big hand,

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say four of a kind or a royal flush. Step five, when the royal flush is showing on the screen,

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don’t cash out. Instead, hit the More Games button and select a different

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game variant. Play it until you win there, any win. This sets up the Double Up option.

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Now your next win will be double than normal. Step six, add more money to the machine. Step seven,

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touch the More Games button again. Now select Maximum Bet Level and go back to

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the game variant you hit the royal flush on. Step eight, hit he Cash Out button and bingo.

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Jackpot. You win up to ten times more than what your original royal flush had awarded you. John

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wanted a cut of the earnings since he told Andre about the exploit. The two argued over this and

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eventually made Andre go out and play on his own. Over the course of his few days in Vegas,

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Andre pulled in $152,000 from places like the Wynn and the Rio. Andre flew back to

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Pennsylvania. John went on a winning streak of his own, visiting eight different casinos

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and pulling in over $500,000 hitting jackpot after jackpot night after night.

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John played with a straight-faced business type of attitude. Back home in Pennsylvania Andre

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found a nearby casino that had the Game King video poker game. [MUSIC] Andre would bring an

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entourage with him to the casino. First would be the bodyguard; retired cop to watch over Andre.

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Second would be a friend of his that was a server at Red Lobster to sit and collect the winnings

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so it would go on his taxes and not Andre’s. Andre continued to win another $50,000 in the

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casino. John had continued his exploits across Vegas. He went over to the Silverton Casino,

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the one that has the mermaid swimming in the aquarium. He went into the high-limit room and

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found a Game King video poker machine. He got the attendant to enable the Double Up feature

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and began hitting jackpot after jackpot. First $4,300, then $2,800, then $4,100, then a few more.

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Each win required an attendant to come and pay the jackpot in cash and fill out an IRS

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form to [00:15:00] declare the winnings. Then he hit a seventh jackpot of $10,400

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and then an eighth jackpot of $8,200. But this time the attendant didn’t come right

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away. John waited impatiently. An attendant came but told John to wait. John complained.

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John’s winning streak had caught the attention of the casino’s surveillance.

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It thought this guy was either incredibly lucky or was cheating so they had security

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come and whisk him away into the back room. He was handcuffed and they froze his machine. John

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was taken to the Clark County Detention Center on suspension of theft and spent the night in jail.

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Next day, he was released and immediately called Andre to warn him not to go back to the casino as

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they know about the bug now, but Andre didn’t listen, thinking John was just trying to keep

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the bug to himself so he continued to visit his local casino with his entourage and kept

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winning. A few days later the Nevada gaming control board visited the Silverton Casino.

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They examined the game and found no evidence of tampering. They pulled the game’s memory

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and took the surveillance tapes. They went back to the lab with the surveillance tapes

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and they were able to duplicate the bug. This would be the first bug like this found on Game

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King. The Gaming Control Board immediately notified IGT, the makers of Game King. IGT

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had a long reputation of having reliable and bug-free games. Both the Gaming Control Board

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and the IGT have strict audits to make sure nothing like this ever gets into the wild.

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After further review IGT had discovered this bug was present for seven years and nobody

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knew it was there on thousands of games around the world. IGT immediately issued a notification

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to all its customers indicating to disable the Double Up feature immediately and that

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the patch would be available soon. Andre had no idea how much the gaming board knew and thought

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John was just telling a lie in order to keep the exploit to himself. Andre continued visiting his

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local casino and was able to win more than $480,000. Eventually the casino refused to

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pay a jackpot and Andre left. When he got to the parking garage he ran outta there.

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[MUSIC] At 1:00 p.m. on August 6th, 2009, Andre was sleeping on the couch in his

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condo and all of a sudden there were shouts at the door. ‘State Police, open up!’ A battering

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ram started hitting the front door. The door splintered open and the police raided his condo.

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Andre started for the stairs which is when he saw a trooper in full riot gear pointing an

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AR-15 rifle at Andre shouting ‘Get on the floor!’ Andre laid on the floor. The cops grabbed him,

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lifted him up, and handcuffed him to a chair. Andre watched for two hours as the troopers

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turned everything over in his house. They flipped the mattresses, opened drawers,

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tore down parts of the ceiling, and went through his PC. Andre’s friend, who was part

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of his entourage, came over to see Andre but was immediately arrested too for being an accomplice.

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The cops seized every penny they found in the condo and turned it over to the

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District Attorney. Andre was charged with 698 felony counts ranging from theft to criminal

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conspiracy. Andre spent ten days in jail and he was determined to fight this case,

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thinking the jury would surely side with him. That’s when the FBI stepped in. They took him

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out of the Pennsylvania court room he was in and extradited him to Las Vegas. Him and John were

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now being charged with federal offences. As the FBI agents walked him to the car,

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a local news crew had a chance to interview Andre. Here’s a clip from that interview.

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ANDRE: I’m being arrested federally now for winning on a slot machine. Let everybody see

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the surveillance tapes. I pressed buttons on the machine on the casino. That’s all

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I did. Now winning is apparently illegal. It’s unbelievable. I have

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700 felonies. A message is being sent to everybody that if you play and you

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win at the casino and then they later determine that their machines weren’t

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completely set up to take your money and you win, then you’re going to be arrested.

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It’s not right and I think the people really need to hear everything that I said today. I talked to

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gaming attorneys in Nevada. They say I didn’t do anything wrong. The philosophy is if a casino puts

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a machine on the floor that pays out more than what is normally expected and a person figures it

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out and takes advantage of it, as long as they don’t use devices or counterfeit money of any

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kind then there’s nothing illegal. It’s a matter between the casino and the maker of that machine.

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JACK: John and Andre were charged with conspiracy and violation of The Computer Fraud and Abuse Act

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of 1986. The CFAA was enacted to punish hackers who illegally broke into government and banks.

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The FBI was stating they knowingly exploited a bug that went beyond their allowable level

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to access the video poker machine and that it was contrary to the rules of poker. However,

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their defense attorney argued that anything the game allowed them to do should be considered

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allowable access. Most slot machine hacking is [00:20:00] done using extra devices like magnets

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or electrical pulses but Andre and John only used the in-game features to manipulate the game

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to play how they wanted. The defense attorney stated all these guys did is push a sequence

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of buttons that they were legally entitled to push. The case dragged on for eighteen months.

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During that time a few other cases of violations of the CFAA came before the courts. One was Aaron

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Swartz, who was arrested for downloading academic articles without permission. The

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other was about leaking a database to another employee. The prosecution didn’t win either of

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these cases and the CFAA was not looking like a strong law, so with John and Andre’s case

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the CFAA law was being scrutinized heavily. The courts were unsure if this law would even cover

00:18:44.100 --> 00:18:51.360
their behavior. On December 3rd, 2013, the feds gave them both the same deal; one was to testify

00:18:51.360 --> 00:18:56.430
against the other, they’d get no jail time, and only probation. The deal was only for the first to

00:18:56.430 --> 00:19:01.290
testify. This is known as the prisoner’s dilemma. John and Andre weren’t able to speak to each other

00:19:01.290 --> 00:19:06.660
so they had to take the only option you can in this situation and they decided not to testify.

00:19:06.660 --> 00:19:09.720
The prosecution didn’t have much to use against

00:19:09.720 --> 00:19:21.560
the two so they ultimately dropped the charges and let them both go free.

00:19:21.560 --> 00:19:25.460
[MUSIC] Andre’s money was seized and returned back to the casino in Pennsylvania where they

00:19:25.460 --> 00:19:31.190
won it, however the IRS is stating he owes $239,000 in back taxes from his winnings,

00:19:31.190 --> 00:19:35.990
which he doesn’t have. Andre feels bad that the money got between John and him caused

00:19:35.990 --> 00:19:41.480
arguments. John and Andre haven’t spoken much since they were arrested in 2009 and they were

00:19:41.480 --> 00:19:46.130
both banned from the casinos they’ve won in, but there was no court evidence that suggests John’s

00:19:46.130 --> 00:19:50.090
winnings were confiscated or returned. It’s unknown what happened to his money.

00:19:50.090 --> 00:19:56.300
John went back to playing piano and recording songs. Vulnerable slot machines are still being

00:19:56.300 --> 00:20:01.340
patched to this day. It’s not as easy as simply clicking Update because the systems aren’t

00:20:01.340 --> 00:20:06.260
connected to the internet. Applying patches to them is more complicated and there are thousands

00:20:06.260 --> 00:20:10.940
of these games spread all across the world. Not all of them are managed by a casino which

00:20:10.940 --> 00:20:15.440
applies the latest patches. There’s a good chance that most of the machines are patched though,

00:20:15.440 --> 00:20:20.180
so it’s best to keep your quarters in your pocket. In the end the casinos were hardly

00:20:20.180 --> 00:20:24.920
bothered by the winning streak John and Andre hit because it was just dozes of casinos and

00:20:24.920 --> 00:20:29.390
only hit by two guys. If this exploit had leaked into the wild where hundreds

00:20:29.390 --> 00:20:33.140
of people all heard about it at once, it would have been a terrible nightmare for

00:20:33.140 --> 00:20:38.692
casinos around the world. It’s lucky for the casino that these two kept this exploit secret.

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JACK (OUTRO): [OUTRO MUSIC] You’ve been listening to Darknet Diaries. Big thanks

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to Kevin Poulsen over at Wired Magazine for covering this story in-depth and getting all

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the juicy details. Find links to his articles at darknetdiaries.com. This episode is made by me,

00:21:18.920 --> 00:21:24.170
Jack Rhysider. Theme music is created by the mysterious and talented Breakmaster Cylinder.
