Phil Ivey could be on the hook to Atlantic City’s Borgata Casino for .6 million he won at baccarat at the casino in 2012 under a New Jersey Superior Court ruling.
The casino charged that Ivey and a partner cheated after noticing defects in the back of the cards used in the game that essentially marked the cards and allowed them to determine which cards were coming next.
According to various reports, U.S. District Judge Noel Hillman has ruled that Ivey and his associate were liable for breach of contract when they won the money at the Borgata. The judge ruled that the pair did not commit fraud, however.
The case stems from play over four days at the casino in 2012. Ivey and associate Cheng Yin Sun used a technique called “edge-sorting” after detecting manufacturer defects on the backs of cards that helped them identify cards. The pair then instructed Borgata’s dealers to place the cards in the shoe in such a way as to be able to read the defects, and essentially know which cards were coming next in hands. The Borgata’s dealers acquiesced to the requests.
Ivey allegedly had Yin Sun ask the dealer to rotate high value cards 90 degrees, which moved the flaw on the card to a position it could be identified. Ivey also insisted that a shuffling machine be used which kept the cards from being spun and altered.
The judge ruled that that Ivey and Yin Sun did not cheat or commit fraud by edge-sorting, since there are no rules in New Jersey against players asking for cards to be arranged in a specific way. In fact, players are not required to give any reason for asking for the change in arrangement, the judge said.
However, the judge did rule that the pair altered the odds of the game to their advantage, which is a violation of the New Jersey Casino Control Act.
“Sun’s mental acumen in distinguishing the tiny differences in the patterns on the back of the cards was remarkable,” Hillman said in his ruling. “But even though Ivey and Sun’s cunning and skill did not break the rules of Baccarat, what sets Ivey and Sun’s actions apart from deceitful maneuvers in other games is that those maneuvers broke the rules of gambling as defined in this state.”
The Borgata now has 20 days to outline what Ivey owes and then Ivey has 20 days to respond, according to NJLawJournal.com.
Ivey has argued that card manufacturer Gemaco was responsible for producing cards and that Borgata knew the card manufacturing process didn’t produce perfectly symmetrical card backs and later destroyed the deck of cards so they couldn’t be used as evidence.
Ivey lost a similar case stemming from an incident at Crockfords Casino in London in 2012, but in that case, the casino had not paid Ivey his winnings. The Borgata, however, has paid Ivey. The casino became aware of the edge sorting in New Jersey after hearing of the Crockford’s case.
Ivey is also counter-suing the Borgata.
