The Man Who Beat Roulette With Computer Science


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It's August 1961 and in the Las Vegas casino a  middle-aged man looks across at his partner in   crime between them they've devised a system for . beating the house and a device to help them do   it a device that will change the way the world  communicates this isn't about money it's about   beating the establishment a stand against those  greedy capitalist casinos their new device was   developed in a lab because they're academics , self-confessed Geeks but the safety of those   familiar surroundings now feels long way away , in the heart of mob run Vegas they're risking   everything including their lives on one final  spin of the wheel in front of his friend there's   a growing pile of chips growing at an impossible  rate they always knew there was one big mistake   they could make not knowing when to quit if they . get busted their reputation will be in tatters but   because they're in Vegas that would be the least , of their worries it's January 1st 1960 the dawn   of a new decade and America is buzzing after 15 , years of sleepy postwar Evolution it's time for   a revolution technology is bringing the future  every household has a taste of it televisions and   portable radios washing machines and microwave  ovens to the average Joe the world is suddenly   moving forward at an incredible Pace but for one . man in Cambridge Massachusetts things are moving   far too slowly the man is a 44-year-old scientist , he's already proven himself to be decades ahead   of his time publishing his findings in the mid  1930s the manga carta of the information age that   he knows one day will make the impossible possible , Paving the way for telecommunications the internet   and artificial intelligence but today he's ready . for a different kind of breakthrough one that will   push him out of his comfort zone and eventually , face to face with real world danger he's Restless   bored a crackpot Professor who already a legend . has earned his right to sit in Daydream so he   ask himself a question how can I use technology to , achieve the impossible today and the answer starts   with computers as far as the average household  is concerned they barely exist belonging in   big academic institutions only as room size , Mega computers which take hours to complete   the smallest of tasks like the cuttingedge yet . painfully slow IBM 704 housed where he sits bored   at MIT the Massachusetts Institute of Technology  supposedly the most Progressive academic   institution in the world but what use exactly is a . computer confined to a lab his mission is to take   computers into the outside world the question is , how the professor's name is Claude Elwood Shannon   and his happy place is at home a three-story  wooden house he shares with his wife Betty   because down in the basement it's a gadgeteers , paradise with a $100,000 worth of mechanical and   electrical components Motors transistors switches , pulleys gears condensers Transformers and so on   at his heart he's an inventor like Leonardo . da Vinci or Nicola Tesla Doc Brown and Willie   Wonka an eccentric mad Professor who who loves to , build the future so he can use it himself right   now here when he's not juggling unicycling or , Tyro walking he's making gadgets some just for   fun such as flame-throwing trumpets rocket powered . Frisbees and a machine which does only one thing   when you switch it on switches itself off again , but others so he can achieve the impossible a   coin flipper that always lands on whatever  you tell it to heads or tails styrofoam shoes   that allow him to walk on water and a robotic , Mouse which can learn to solve a maze to claw   nothing is impossible except coming out with his  own new idea that could change the world now with   computers until he meets Edward o Thorp Edward . Thorp is a mathematician and just like Claude   he's based at MIT he loves mixing things up he's . fresh from revolutionizing blackjack with a card   counting system that enabled him to beat Vegas and  in September 1960 he tells Claude about another   idea in the spring of 1955 while finishing my  second year of graduate physics at UCLA I thought   thought about whether it was possible to beat the  roulette will in fact he'd been thinking about it   since he was a kid but there and then they agreed , to work on the idea together to use science math   and computers whatever the two inventors need to  call upon to beat roulette it's a crazy plan and   their wives are not happy of all the most widely  played games played in casinos Across America up   until this time roulette had consistently offered , the worst odds it first appeared as we know it in   1796 where it become the favored High States game  of the Rich and Royal people who only got excited   by winning big because they could always afford . to lose because when it comes to a rig game like   roulette you will lose today a European Roulette  will has 37 Pockets whilst an American one has   38 numbered 1 through 36 plus a zero and a double . zero if the game was fair picking the right single   number would get you a payout of 38:1 but it . doesn't you get paid 35 to1 this difference   gives a cons knows an edge of 5.26% you might , think if you bet on red or black and win the   payout is even so you double your stake but again , because of those two extra greens you're actually   being under rewarded but the main problem is luck .


because unlike most card games where there's at   least some skill involved and a good player can , give themselves an edge over rivals or minimize   the edge held by the house roulette is in theory , completely random and that's where Claude and   Edward start they say that actually it's not  random they think fate doesn't dictate where   the ball ends up physics does and that's part , one of their plan using physics to wipe away   the casino's unfair Advantage Edward recalls how , a favorite High School teacher described a trip   to Vegas where the orbitting ball of a roulette , wheel reminded him of a planetary system and of   a pendulum that's gradually dissipating energy . inspired they head to Reno and by a roulette   will it sets them back $1500 already they're  pushing themselves to the Limit with modest   academic salaries and mouths to feed they'll need  to work after hours to get the job done and they   do so down in claude's basement lab working into  the night 20 hours a week running test after test   and recording their work until eventually they  have a system it works like this in moulette the   wheel with its numbered pockets is spun in One . Direction usually clockwise while the ball is   launched in the other along the outer edge of the . wheel's Rim initially centripedal Force maintains   the ball's circular path but as it's slowed by . friction and Gra gravity it loses momentum and   eventually falls off the track into the middle . section before settling into a numbered pocket   on the spinning Rotor at the bottom breaking  it down first they must predict when and where   the orbit and ball will leave the outer track  they do this by measuring the time it takes to   complete one revolution by hitting the switch to  record its start and end next they must predict   the time the ball would take and the distance it , would travel across the middle section and further   recordings make this possible too once the ball , get to the pockets its movements are more random   but the results are still recorded with a system , for recording this key info in place part two of   their plan is to create a device which can . enable them to exploit it namely a computer   something which can receive their data process it  using algorithms they've devised and calculate a   useful output in April and May 1961 their work . intensifies the project must be finished before   September when Edward moves to a new job in La . they also to do some field work in Vegas noticing   that some wheels are tilted back in the lab they  discovered that this contributing gravity creates   less Randomness than a flat wheel and decide . that a half chip tilt equal to put in a coin   half the thickness of a casino chip under one of , the three feet of the wheels is ideal and then at   the end of June 1961 they have their computer a  computer small enough to take anywhere a computer   which passes their Benchmark for Success if the , computer predicts a number the ball just needs to   within a range of 16 neighboring numbers around , it in order for them to have an edge in fact   they're consistently accurate within a range  of 10 neighboring numbers they've come up with   a system to predict physics and a gadget which no . one has seen to process that information and help   them beat the house but will it work in the chaos  of the real Casino they're ready to find out it's   1961 now and Claude and Ed have dedicated a year , of their lives to project roulette if it fails   they not only lose all the time and the thousands  of dollars that they've invested but they'll also   face academic humiliation and if they cross the  wrong people serious trouble as they settle into   a journey in hotel rooms though with their wives  bet and Vivian there's a holiday mood if before   head out to find the casino they'll visit the next  day settling on the one with the right tilt of the   wheel and the nicest Ambiance and then they go for  dinner where Claude asks Ed what makes you tick   is a semi-serious question the two have driven . themselves towards the crossroads once they step   over the threshold and really do this it changes . everything but it's also a joke a reference to   how the world's first wearable computer actually  works the next day the four head into the casino   where they pretend to be strangers clawed Betty  and Vivan nervous and they're right to be the   mafia riddled gaming industry is not something . to mess with Edward though is calm he's beating   casinos already and he thinks what's the worst . that can happen maybe is about to find out their   system requires a Twan team Claude is the Observer . he wears the transmitting computer made of two   units each the size of a packet of cigarettes each , fitting uncomfortably inside his shoes there the   data logging the movement of the wheel and the , ball is entered with Mercury switches operated   by his big toes click transmitted by radio waves . using equipment modified from a model airplane to   a receiver worn around the waist of the B Ed ultra , thin stainless steel wires painted a flesh color   then run up his body and are delicately solded  to an earphone which plays a variety of coded   musical tones telling him what to do to distract . the dealer and Casino security meanwhile Claude   holds a little notepad and writes down the winning . number after each roll just like another doomed to   fail system player they sett at a table sitting .


far apart Bessie and Vivian keep watch making   sure no one's getting suspicious the creier gives  the wheel a push Claude presses a big toe down   click and they on the way each time the computer  tells Edward which one of the eight groups of five   adjacent numbers to bet on is a common roulette  strategy with the French calling such a group a   Vonage or neighborhood the zero and dou Zer appear , twice because they're 38 numbers on the board but   the 5times 8 groups total 40 a normal player  who bets on all five numbers in one of those   eight neighborhoods is a 1 in8 chance of winning . with the house maintaining a 5.26% advantage using   the computer though Gord and Edward win one in . five times because they're sure the ball will   land in one of the five octons not the other  three giving them an extraordinary 44% Edge   based on the signals he's receiving from Claude . Ed starts betting cautiously betting just 10   cent chips within a few spins the computer works  its magic turning a few dimes into a heap as yet   another bet scores but it's late summer in Vegas , the electrical thrum of the casino adds to the   temperature as do the ner NES and before long the . inevitable happens Ed gets hot and uncomfortable   and those ultra thin wires start to break their  night is over and so they head back to their rooms   to get the solder out and plan again at least they , got away with it for now the next day the for are   back at it this time placing bigger bets and again , it works the 44% Edge that they proved in The LAB   Works in Vegas and the chips start to pile up . again though the wires keep breaking it's a   disaster back they go to the room in a hurry sold , her out then back on the tables as quick as they   possibly can to cheat success at gambling you need . to multiply your money fast before the inevitable   heat comes un strong you bet your stake and win . then you add a percentage of your winnings to   create a bigger stake win and so on every time . they return to their RSO they lose momentum the   stress is getting to everyone Claude and Edward  are academics to them it's essential that they   complete their EXP experiment and that means , demonstrating consistent returns but the trouble   they're cting could end their careers and their  wives know it Panic is setting in and they want   out eventually under pressure from their wives  they agree to return to the roulette will just one   final time one final time to go big with one final . game and then they'll get out it's a plan and Cal   is restored after all they haven't actually been . caught yet the following morning they sleep late   when they rise they eat and then they pack ready  to leave and then as the night falls on Vegas and   the city comes alive in all of its filth and Glory , they begin it's the Moment of Truth the chips   start to pile up once more the bets get bigger . and so do the winds it's working just keep going   just a little longer it is though impossible to  ignore the vultures are circling winning attracts   attention most of all from Casino security Betty . and Vivian or an edge convinced that something   bad is coming one wrong move one malfunction and . everything could come crushing down and then it   happens a woman sitting next to Ed turns to him  and then suddenly her eyes widen in horror his   earpiece and wire are clearly poking out she wants . to speak to say something but what and to whom   Edward leaves the table fast heart pounding he  heads to the restroom to fix the wire they should   leave now they know they're walking a fine line , but they just want one more win so he heads back   to join Claude at the wheel trying to stay calm , breathe everything everything is normal nothing   to see and he carries on those fragile wires need , to hold up one last time he locks eyes with Claude   the wheel spins click the calculations are made , transmitted and received an Octon is BET on all in   one final time the ball drops and finally settles . exactly as predicted they've done it and now it's   time to get away Claude Shannon and Ed Thorp , leave Vegas not as millionaires but as pioneers   and friends we got along well because because from . an early age science was at play for both of us   tinkering and Building Things was part of the fun . as was letting our curiosity range freely so could   two self-confessed Geeks build the world's first . wearable computer and prove that with science and   maths they could outsmart a rig game to beat the . big guy and win the answer is yes although they   keep the system Under Wraps until Edward mentions , it in his book Blackjack beat the dealer the pair   donate the hardware to the MIT Museum it's all  EXP explained in a paper titled the invention   of the first wearable computer published in 1998  laying the groundwork for the wearable tech worn   by billions of people around the world today from . Google Glass to Apple watches in the years that   follow Claude Shannon returns to his academic work , cement in his legacy as the father of information   Theory Paving the way for the internet and , digital communication his work on Computer   Learning predates artificial intelligence Ed Thor  meanwhile leaves Vegas and Academia behind as he   takes on the greatest casino on Earth Wall Street , check out the next video and see what happened

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