Judge: Phil Ivey "Broke Rules of Gambling" in $10m Baccarat Win

The Borgata Hotel & Casino and poker pro Phil Ivey have been battling in court over nearly $10 million that the latter won through baccarat. On Friday, a federal judge ruled that Ivey violated New Jersey state gambling regulations to win the large sum.

U.S. District Court Judge Noel Hillman said that Ivey and his companion, Cheng Yin Sun, did not cheat or violate any laws. But they failed to follow gambling regulations on four occasions in 2012, asking a dealer to arrange cards so that they could better determine the values.

This shifted the odds in their favor, which violates the New Jersey Casino Control Act according to the judge. Hillman did, however, throw out allegations by the Borgata that Ivey and Sun are guilty of fraud.

As reported by Philly.com, the Borgata has 20 days to outline the damages they’ve suffered before the judge makes a final ruling.

“Borgata and Ivey had the same goal when they entered into their arrangement: to profit at the other’s expense,” wrote Hillman. “Trust is a misplaced sentiment in this context.”

The Borgata’s lawsuit states that Ivey and Sun used a technique called edge sorting, where one sports defects on card backs to figure out their values. The casino claims that this violates New Jersey gambling regulations.

The lawsuit details how Ivey requested a special Gemaco deck, which is flawed with half-diamonds and quarter diamonds. Normal card decks have rows of small white circles designed to look like the tops of cut diamonds. By spotting the imperfections in the Gemaco deck, one could theoretically tell some or all of the card totals before they’re flipped over.

The poker pro argues that he merely used skill and good observation to beat the casino. He also likens his win to a game, where casinos try to beat the player and vice versa.

Judge Hillman, however, agreed with the Borgata on some level that Ivey and Sun went too far. He points out how Sun instructed the dealer to arrange cards in a specific way. And although such a request is not uncommon for high rollers, the fact that Sun was doing it to better see the card backs violated the Casino Control Act.

Hillman wrote that Ivey and Sun “view their actions to be akin to cunning, but not rule-breaking, maneuvers performed in many games, such as a play-action in American football, or the ‘Marshall swindle’ in chess.”

The judge added that “Sun’s mental acumen” in distinguishing the tiny differences on the back of the cards was “remarkable.”

But ultimately, he believes that Ivey and Sun pushed the boundaries of what’s considered legitimate skill play.

“But even though Ivey and Sun’s cunning and skill did not break the rules of Baccarat,” he wrote, “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.”