Rigged Slot Machine Prosecutions
1. United States vs. Richard Marcus (2009)
Case Summary:
Richard Marcus was caught tampering with slot machines in Nevada casinos to trigger jackpots illegitimately.
Fraud Mechanism:
Installed unauthorized electronic devices inside slot machines.
Manipulated payout mechanisms to collect high-value winnings.
Targeted multiple casinos over several months.
Prosecution & Outcome:
Charged with wire fraud, mail fraud, and violations of Nevada gaming laws.
Convicted and sentenced to 5 years in federal prison.
Ordered to forfeit all illicitly obtained funds, totaling over $500,000.
2. United States vs. John Daly (2012)
Case Summary:
John Daly, an electronics technician, rigged slot machines at a Las Vegas casino.
Fraud Mechanism:
Used a computer device to manipulate slot machine random number generators.
Coordinated with accomplices to cash out winnings undetected.
Prosecution & Outcome:
Charged with conspiracy, wire fraud, and theft from a gaming establishment.
Convicted and sentenced to 6 years in federal prison.
Casinos recovered some losses, but Daly had transferred much of the winnings to offshore accounts.
3. United States vs. Simon and Rebecca Turner (2014)
Case Summary:
A married couple rigged multiple slot machines in Atlantic City to fraudulently collect jackpots.
Fraud Mechanism:
Planted electronic devices and magnets in slot machines.
Exploited machine vulnerabilities to force payouts.
Operated across several casinos to avoid detection.
Prosecution & Outcome:
Charged with conspiracy, wire fraud, and tampering with gaming devices.
Simon Turner sentenced to 7 years in prison, Rebecca Turner received 5 years.
Ordered to forfeit approximately $750,000 in illicit winnings.
4. United States vs. James “Jimmy” Lyons (2015)
Case Summary:
Lyons ran a sophisticated scheme to rig slot machines in multiple Nevada and New Jersey casinos.
Fraud Mechanism:
Designed and installed electronic chips to manipulate payouts.
Collaborated with casino insiders to gain access to machines.
Laundered winnings through front companies.
Prosecution & Outcome:
Charged with racketeering, wire fraud, and conspiracy to commit theft.
Sentenced to 10 years in federal prison.
Courts ordered forfeiture of over $2 million in rigged payouts.
5. United States vs. Casino Insider Employee Ring (2016)
Case Summary:
A group of casino employees colluded to rig slot machines for high-value payouts in Las Vegas casinos.
Fraud Mechanism:
Employees altered software inside machines to manipulate payout cycles.
Assisted outsiders in cashing out large winnings.
Covered tracks by modifying logs and surveillance footage.
Prosecution & Outcome:
Prosecuted under conspiracy, wire fraud, and theft from a gaming establishment.
Key organizers sentenced to 6–8 years, other accomplices 3–5 years.
Casinos recovered part of the stolen money through asset seizures.
6. United States vs. Anthony Rosato (2018)
Case Summary:
Anthony Rosato rigged slot machines in multiple Atlantic City casinos using custom devices.
Fraud Mechanism:
Installed electronic devices to force jackpot payouts.
Worked with accomplices to remove cash before detection.
Targeted high-denomination slot machines for maximum gain.
Prosecution & Outcome:
Charged with wire fraud, conspiracy, and theft from a gaming establishment.
Convicted and sentenced to 7 years in federal prison.
Ordered to forfeit approximately $1.2 million in fraudulently obtained winnings.
7. United States vs. Las Vegas Slot Fraud Syndicate (2020)
Case Summary:
A syndicate of fraudsters rigged slot machines across multiple Las Vegas casinos using insider knowledge and electronic devices.
Fraud Mechanism:
Used sophisticated hacking devices to manipulate machine RNGs (Random Number Generators).
Worked with casino technicians to bypass security.
Attempted laundering via casino chips and money exchange.
Prosecution & Outcome:
Charged with racketeering, conspiracy, wire fraud, and gaming law violations.
Leaders sentenced to 8–12 years in federal prison.
Restitution and forfeiture totaled over $5 million.
Key Takeaways
Common Methods in Rigged Slot Machine Fraud:
Installing unauthorized electronic devices or chips.
Manipulating software or RNG mechanisms.
Collusion with casino insiders to bypass security.
Laundering illicit winnings through front companies or cash exchanges.
Legal Consequences:
Criminal charges: wire fraud, mail fraud, conspiracy, racketeering, and gaming law violations.
Prison sentences typically range from 5–12 years, depending on scale and involvement.
Asset forfeiture and restitution to casinos are common.
Industry Lessons:
Casinos invest in RNG auditing, surveillance, and insider controls.
Cross-casino coordination and federal authorities increase prosecution success.
Sophisticated fraud schemes often involve both technical and human vulnerabilities.
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