The Ultimate Gambler

One thing you have to say about Dr. Edward O. Thorp:

When he tackles a project, especially if it involves gambling, he does it with style.

Thorp, a probability expert who has a degree in math, has taught in universities across the Southwest for years. He wrote a best-selling book on blackjack more than 40 years ago called 'Beat The Dealer' that was so effective on developing a strategy to win at the game that it forced casinos to change the rules.

But he didn't stop there...

He has spent his life doing research and developing strategies to help players win at roulette, baccarat, and even the stock market.

Thorp isn't just an addicted gambler. He works on these systems because it's fun and because he has the brain power to overcome the odds.

With the assistance of other brainy researchers, he invented the pocket-sized computer to predict the winning numbers in roulette. After extensive research, he took the tiny computer to Las Vegas, tested it in a casino -- and it worked.

After 'Beat The Dealer,'

He teamed up with Sheen Kassouf to write a book called 'Beat The Market' that influenced securities markets around the world. His research was so effective that he formed a company and developed hedge funds that were profitable every year for nearly 30 years.

The mild-minded professor was a terror as a child. He made gunpowder and even nitroglycerine in his home, using the ingredients found in basic chemistry sets. Some of the resulting explosions blew up pavement and made holes in the earth when they succeeded too well even for Thorp.

Las Vegas casino executives...

...failed to take him seriously and it cost them dearly. The Nevada legislature passed laws to protect the casinos against Thorp and other card counters. They also enacted legislation to ban devices that used probability to beat games of chance and provided fines and even prison terms for users of such systems.

Beat The Dealer

After reading his book 'Beat The Dealer' in the late 1960s, I turned myself from a loss into a winning blackjack player. The results were amazing and forced casinos to adopt six and eight deck shoes to frustrate card counters. I haven't played blackjack since, although I understand players have adapted to the changed rules and are still winning at the game.

Thorp is a scientist who loves challenges, the tougher the better. He plays the games for fun rather than the money, although the money helps. A successful blackjack player and stock market investor, he and his wife live in Newport Beach, CA.

If you are a serious player, I highly recommend you pick up a copy of his latest book, 'A Man For All Markets,' which is an excellent autobiography that will provide you with hours of fun reading.

At first, his wife, Vivian, was skeptical over her husband's interest in gambling. She thought it was an obsession. But as his successes increased over the years, she became a believer in his brilliance and willingly accompanied him on his missions to dens of iniquity in Las Vegas, Reno, Atlantic City and elsewhere.

The pit bosses at first welcomed Thorp with smiles. They expected his systems to fail like systems before he had done. But when the soft-spoken professor continued to beat them at baccarat, they turned hostile and even spiked his drinks, including coffee and water, with drugs.

Determination

Thorp was persistent and continued to win at baccarat. He played at the Sands and after having a winning session Carl Cohen, a part owner, came to his table and told him he was barred from play.

Cohen had once pulled a gun on Frank Sinatra and was a tough casino executive. When Thorp asked him why he had been barred, Cohen shrugged and told him, "No reason. We just don't want you to play here."

No, casinos don't consider losing an option.

Thorp had proven his point, that casino games are beatable. He slowed down his gambling activities and turned his interest to Wall Street, which he called 'the greatest casino on earth.'

I'll tell you more about that later.