WEBVTT - The Story: Russian Bots vs American Gamblers

0:00:13.840 --> 0:00:17.480
<v Speaker 1>Welcome to text stuff. I'm's Volocian here with Cara Price,

0:00:17.600 --> 0:00:21.440
<v Speaker 1>and this is the story. Hello Oz, Hello Cara. One

0:00:21.440 --> 0:00:25.639
<v Speaker 1>of my favorite memories that we have together was a

0:00:25.760 --> 0:00:29.400
<v Speaker 1>trip to the Consumer Electronics Show in Vegas in January

0:00:29.400 --> 0:00:32.560
<v Speaker 1>twenty twenty, and we went to the panels. We spoke

0:00:32.640 --> 0:00:35.040
<v Speaker 1>on a panel, but where I really saw you could

0:00:35.040 --> 0:00:38.400
<v Speaker 1>come alive was on the casino floor.

0:00:38.240 --> 0:00:39.920
<v Speaker 2>Not at CES. On the casino.

0:00:40.000 --> 0:00:43.200
<v Speaker 1>From the casino floor, I hadn't known until that point

0:00:43.280 --> 0:00:46.360
<v Speaker 1>that you were quite a you know, passionate gambler.

0:00:46.520 --> 0:00:49.440
<v Speaker 2>That's a euphemism for degenerate, but yes I am. I'm

0:00:49.440 --> 0:00:53.240
<v Speaker 2>not a degenerate gambler. I dabble in gambling and blackjack

0:00:53.400 --> 0:00:54.080
<v Speaker 2>is my sport.

0:00:54.280 --> 0:00:55.320
<v Speaker 1>When did you get into it?

0:00:55.400 --> 0:00:58.720
<v Speaker 2>My mom liked to gamble, and so she taught me

0:00:58.760 --> 0:01:01.280
<v Speaker 2>how to play blackjack. And I've always loved blackjack, just

0:01:01.320 --> 0:01:04.120
<v Speaker 2>for the high highs and the low lows of it.

0:01:04.280 --> 0:01:06.920
<v Speaker 1>I only get to supervise your behavior with more I pusson.

0:01:07.240 --> 0:01:09.440
<v Speaker 1>But how much do you play on your phone?

0:01:09.520 --> 0:01:12.360
<v Speaker 2>I do play online blackjack, but not for money.

0:01:12.360 --> 0:01:16.039
<v Speaker 1>Just for fun, just for fun. Well, today's story is

0:01:16.120 --> 0:01:22.319
<v Speaker 1>actually all about how digital blackjack poker other casino games

0:01:22.760 --> 0:01:26.200
<v Speaker 1>have just gone crazy and been booming online for the

0:01:26.319 --> 0:01:30.440
<v Speaker 1>last few years, and our guest today, Bloomberg reporter Kitchillel,

0:01:30.840 --> 0:01:32.520
<v Speaker 1>has been looking into why in the.

0:01:32.560 --> 0:01:36.160
<v Speaker 3>Last five, six, seven years it has taken over the

0:01:36.319 --> 0:01:38.600
<v Speaker 3>entire world, and the reason for that is a combination

0:01:38.920 --> 0:01:42.840
<v Speaker 3>of obviously enormous demand, the idea that you can just

0:01:43.040 --> 0:01:46.240
<v Speaker 3>gamble by reaching into your pocket and pulling out a

0:01:46.240 --> 0:01:49.920
<v Speaker 3>smartphone is quite appealing, but also a regulatory changes. I

0:01:49.920 --> 0:01:54.960
<v Speaker 3>think online gambling gambling anywhere fifty years ago was seen

0:01:55.000 --> 0:01:57.680
<v Speaker 3>as a kind of fringe, shady, wrong side of the

0:01:57.720 --> 0:02:02.760
<v Speaker 3>tracks activity, and a combination of massive lobbying by big

0:02:02.800 --> 0:02:07.640
<v Speaker 3>gambling companies and just societal changes, really ethical changes have

0:02:07.720 --> 0:02:10.320
<v Speaker 3>meant that what used to be a shady thing to

0:02:10.320 --> 0:02:12.000
<v Speaker 3>do is now entirely normal.

0:02:12.600 --> 0:02:15.200
<v Speaker 2>Yeah, this is very much in line with my experience

0:02:15.200 --> 0:02:19.720
<v Speaker 2>of seeing sports betting ads everywhere. Besides it moving online,

0:02:19.800 --> 0:02:21.800
<v Speaker 2>what does it actually have to do with our show.

0:02:22.160 --> 0:02:24.760
<v Speaker 1>Well, Kit actually wrote this piece for Bloomberg that really

0:02:24.840 --> 0:02:28.720
<v Speaker 1>caught my eye with the headline the Russian bot army

0:02:28.919 --> 0:02:30.520
<v Speaker 1>that conquered online poker.

0:02:30.720 --> 0:02:35.040
<v Speaker 2>All right, so a Russian bot army is not necessarily

0:02:35.040 --> 0:02:38.440
<v Speaker 2>a phrase we see put together with poker.

0:02:38.919 --> 0:02:41.960
<v Speaker 1>Normally we're thinking more about Russian bot armies trying to

0:02:41.960 --> 0:02:45.639
<v Speaker 1>influence elections or also, the Russian bot army is kind

0:02:45.680 --> 0:02:48.920
<v Speaker 1>of like a little bit of internet boogeyman.

0:02:48.760 --> 0:02:51.120
<v Speaker 2>Very much like if I imagine what a Russian bot

0:02:51.200 --> 0:02:53.880
<v Speaker 2>army looks like in real life, it's it's very different

0:02:53.919 --> 0:02:56.320
<v Speaker 2>than what it probably is in reality.

0:02:56.840 --> 0:03:00.760
<v Speaker 1>Well, Kit was also slightly dubious, but he got to

0:03:00.840 --> 0:03:03.080
<v Speaker 1>meet a real life Russian bot army.

0:03:03.520 --> 0:03:05.960
<v Speaker 3>I'll be honest, I was very suspicious about the idea

0:03:06.040 --> 0:03:08.560
<v Speaker 3>that that all this spot activity in the poker world

0:03:08.560 --> 0:03:12.000
<v Speaker 3>emanated from Russia. I think there was a tendency here

0:03:11.360 --> 0:03:15.560
<v Speaker 3>to see any sort of perception of nefarious online activity

0:03:15.560 --> 0:03:18.160
<v Speaker 3>to go as the Russians. And you know, when I

0:03:18.200 --> 0:03:21.079
<v Speaker 3>went through the available material when I started this project,

0:03:21.960 --> 0:03:25.040
<v Speaker 3>none of it seemed to be based on any real evidence,

0:03:25.080 --> 0:03:27.519
<v Speaker 3>on knowledge that something was happening in Russia. It was

0:03:27.560 --> 0:03:30.239
<v Speaker 3>all smoke and mirrors. So I approached it with a

0:03:30.320 --> 0:03:33.560
<v Speaker 3>very skeptical eye. But then after doing six months to

0:03:33.600 --> 0:03:36.120
<v Speaker 3>a year worth of reporting and finally meeting the people

0:03:36.120 --> 0:03:38.800
<v Speaker 3>behind it, you know, it turns out the rumor was

0:03:38.920 --> 0:03:39.880
<v Speaker 3>essentially correct.

0:03:40.320 --> 0:03:41.520
<v Speaker 2>So it was the Russians.

0:03:41.680 --> 0:03:42.640
<v Speaker 1>It was the Russians.

0:03:42.720 --> 0:03:44.480
<v Speaker 2>What are the Russians doing? Well?

0:03:44.640 --> 0:03:48.160
<v Speaker 3>I'll let Kit explain that everyone who plays poker knows

0:03:48.480 --> 0:03:51.720
<v Speaker 3>that there's software that can play poker very well. So

0:03:52.040 --> 0:03:55.320
<v Speaker 3>I was curious about who was using this new technology

0:03:55.320 --> 0:03:58.880
<v Speaker 3>to actually make money from online poker. And there were

0:03:58.920 --> 0:04:02.480
<v Speaker 3>all sorts of rumors of out genius Russian poker bots.

0:04:02.520 --> 0:04:05.440
<v Speaker 3>You could log onto the poker chat rooms and everyone

0:04:05.480 --> 0:04:08.240
<v Speaker 3>was complaining about Russian bots, but there was no information

0:04:08.280 --> 0:04:11.280
<v Speaker 3>about who they were, who was making them. So I

0:04:11.400 --> 0:04:14.120
<v Speaker 3>went looking for the people who made those bots, and

0:04:14.160 --> 0:04:17.400
<v Speaker 3>that led me to this operation based out of Omskin, Siberia.

0:04:18.120 --> 0:04:20.200
<v Speaker 2>Nothing I have ever done in life has led me

0:04:20.279 --> 0:04:23.040
<v Speaker 2>to OMPs in Siberia, and I don't know if anything

0:04:23.120 --> 0:04:23.640
<v Speaker 2>ever will.

0:04:23.839 --> 0:04:26.240
<v Speaker 1>You never watched a Bond movie from Russia with love.

0:04:26.760 --> 0:04:30.400
<v Speaker 2>From Ompsk with love, Now it has a different ring

0:04:30.480 --> 0:04:33.960
<v Speaker 2>to it. This is really interesting and I just want

0:04:33.960 --> 0:04:34.760
<v Speaker 2>to know more about it.

0:04:35.000 --> 0:04:37.159
<v Speaker 1>Yeah. So it turns out that not only is this

0:04:37.240 --> 0:04:40.960
<v Speaker 1>Russian group making lots of money doing this, but also

0:04:41.000 --> 0:04:45.360
<v Speaker 1>that the technology they've built has fundamentally changed the way

0:04:45.400 --> 0:04:49.880
<v Speaker 1>poka is played online and in real life. So it's

0:04:49.880 --> 0:04:53.400
<v Speaker 1>one of these interesting kind of human machine interaction stories

0:04:53.440 --> 0:04:56.360
<v Speaker 1>about the ways we may not be even conscious of

0:04:56.400 --> 0:04:59.080
<v Speaker 1>the fact that we're interacting with machines all around us

0:04:59.520 --> 0:05:01.320
<v Speaker 1>and they're fluencing our behavior.

0:05:01.839 --> 0:05:04.200
<v Speaker 3>I think I was fascinated by the idea that these

0:05:04.200 --> 0:05:06.440
<v Speaker 3>are very human games. I mean, poker is the most

0:05:06.520 --> 0:05:12.440
<v Speaker 3>human of games. It involves bluffing, lying, dishonesty, deception, reading

0:05:12.600 --> 0:05:17.320
<v Speaker 3>human visual clues. It's the archetypal game that machines shouldn't

0:05:17.320 --> 0:05:20.520
<v Speaker 3>be able to play, and the things that humans used

0:05:20.560 --> 0:05:23.800
<v Speaker 3>to exclusively dominate. Now machines more and more are taking over.

0:05:24.080 --> 0:05:26.120
<v Speaker 3>And that's true in gambling as much as anywhere else.

0:05:26.640 --> 0:05:29.480
<v Speaker 3>And when we talk about gambling and we talk about

0:05:29.560 --> 0:05:32.560
<v Speaker 3>the people using technology to do it, I still think

0:05:32.600 --> 0:05:35.640
<v Speaker 3>most people today who place online bets or who bet

0:05:35.720 --> 0:05:38.560
<v Speaker 3>on sports or play poker, they don't know that this

0:05:38.680 --> 0:05:41.599
<v Speaker 3>world exists. They don't know there's a whole subculture of

0:05:41.600 --> 0:05:43.800
<v Speaker 3>players who are using state of the art technology to

0:05:43.800 --> 0:05:46.720
<v Speaker 3>play these games in a very inhuman way. And I

0:05:46.760 --> 0:05:48.840
<v Speaker 3>was fascinated by the fact that it's kind of there,

0:05:48.880 --> 0:05:51.080
<v Speaker 3>in secret but affecting games we all know and love.

0:05:51.520 --> 0:05:53.480
<v Speaker 2>I'm really excited to hear the rest of your interview

0:05:53.520 --> 0:05:56.960
<v Speaker 2>because I want to know more about how machines are

0:05:57.040 --> 0:05:59.839
<v Speaker 2>actually influencing the way human players.

0:06:00.640 --> 0:06:03.640
<v Speaker 3>I'll let explain that here he is the standard for

0:06:03.720 --> 0:06:07.560
<v Speaker 3>machine intelligence really is is always creative thinking, which is

0:06:07.760 --> 0:06:10.240
<v Speaker 3>which is a very human thing to do. And one

0:06:10.279 --> 0:06:13.000
<v Speaker 3>of the simplest and most binary ways to test the

0:06:13.040 --> 0:06:15.680
<v Speaker 3>machine's ability to think like a person is to play

0:06:15.720 --> 0:06:20.039
<v Speaker 3>a game that involves deduction and logic. The gamification of

0:06:20.120 --> 0:06:23.400
<v Speaker 3>this technology allows researchers to test how good it is,

0:06:23.880 --> 0:06:26.400
<v Speaker 3>and poker is very actually a very good proxy for

0:06:26.480 --> 0:06:29.200
<v Speaker 3>real life. You know, it's a game of imperfect information.

0:06:29.600 --> 0:06:33.080
<v Speaker 3>The players don't really know what the other players might hold.

0:06:33.080 --> 0:06:35.599
<v Speaker 3>They have to guess, they have to do the best

0:06:35.640 --> 0:06:37.599
<v Speaker 3>they can with the limited information they have. That's what

0:06:37.680 --> 0:06:39.920
<v Speaker 3>real life is like. And in the world of computing,

0:06:40.240 --> 0:06:43.160
<v Speaker 3>you deal with ones and zeros and certainties. What computers

0:06:43.160 --> 0:06:45.960
<v Speaker 3>have had traditionally been quite bad at is dealing with

0:06:46.000 --> 0:06:48.960
<v Speaker 3>these very uncertain situations where you're guessing and you're reading.

0:06:49.480 --> 0:06:51.800
<v Speaker 3>So Poker is a very good proxy for how human

0:06:52.000 --> 0:06:55.600
<v Speaker 3>like a machine can be. And I think it's interesting

0:06:55.680 --> 0:06:59.040
<v Speaker 3>that it took until about twenty fifteen, which is extremely

0:06:59.120 --> 0:07:02.520
<v Speaker 3>late in the world of artificial intelligence for the best

0:07:02.520 --> 0:07:05.039
<v Speaker 3>poker bots to be able to beat really good poker pros,

0:07:05.640 --> 0:07:09.760
<v Speaker 3>and ever since, really the best poker blots are essentially unbeatable.

0:07:10.000 --> 0:07:12.680
<v Speaker 3>In practical terms. It's really a question of how slowly

0:07:13.080 --> 0:07:14.360
<v Speaker 3>or quickly you will lose to them.

0:07:14.720 --> 0:07:16.520
<v Speaker 1>And this brings us back to the story which has

0:07:16.560 --> 0:07:19.800
<v Speaker 1>the headline the Russian bot Army that conquered online Poker.

0:07:20.240 --> 0:07:24.560
<v Speaker 1>The piece opens with two online poker players engaged in

0:07:24.600 --> 0:07:28.480
<v Speaker 1>a standoff. Tell us about the standoff and the match

0:07:28.640 --> 0:07:29.239
<v Speaker 1>that followed.

0:07:29.600 --> 0:07:31.960
<v Speaker 3>The situation was one that very typically happens in an

0:07:31.960 --> 0:07:35.720
<v Speaker 3>online poker where the people who are online poker professionals,

0:07:35.760 --> 0:07:39.640
<v Speaker 3>they tend to compete exclusively online. That means they can

0:07:39.720 --> 0:07:41.880
<v Speaker 3>be challenged and challenge anyone in the world. So the

0:07:41.920 --> 0:07:45.520
<v Speaker 3>top poker professionals online will routinely open up and say

0:07:45.560 --> 0:07:47.120
<v Speaker 3>come and play me and see how good you are.

0:07:47.960 --> 0:07:51.080
<v Speaker 3>This guy Farewell was one of the world's best heads

0:07:51.160 --> 0:07:54.120
<v Speaker 3>up poker players. He had an elite level skill set,

0:07:54.200 --> 0:07:56.240
<v Speaker 3>and he got into a kind of an argument online

0:07:56.240 --> 0:07:58.920
<v Speaker 3>with another Russian and challenged him to a game of

0:07:58.960 --> 0:08:02.800
<v Speaker 3>poker and very surprisingly lost that contest and lost a

0:08:02.800 --> 0:08:06.640
<v Speaker 3>lot of money and the way he got beaten. He

0:08:06.720 --> 0:08:09.360
<v Speaker 3>was immediately suspicious. And I know poker players when they

0:08:09.400 --> 0:08:11.760
<v Speaker 3>lose game of poker will always tend to say I've

0:08:11.760 --> 0:08:14.920
<v Speaker 3>been conned, I've been cheated. In this case, someone with

0:08:15.200 --> 0:08:17.600
<v Speaker 3>his abilities losing a match like that, it kind of

0:08:17.680 --> 0:08:20.280
<v Speaker 3>was suspicious, but it was also the way he lost.

0:08:20.840 --> 0:08:23.840
<v Speaker 3>His opponent was making decisions that human beings don't normally make.

0:08:24.440 --> 0:08:27.200
<v Speaker 3>He complained and said they was cheating involved, and the

0:08:27.240 --> 0:08:29.600
<v Speaker 3>other guy on the other side denied it. But my

0:08:29.760 --> 0:08:33.400
<v Speaker 3>research led me to evidence that his opponent had access

0:08:33.440 --> 0:08:36.600
<v Speaker 3>to this state of the art poker pot system that

0:08:36.720 --> 0:08:41.040
<v Speaker 3>was built in Siberia, And I think what I discovered

0:08:41.360 --> 0:08:44.400
<v Speaker 3>was that this kind of matchup happens a lot in poker.

0:08:44.800 --> 0:08:47.040
<v Speaker 3>You're playing someone online and you don't know who they are,

0:08:47.120 --> 0:08:49.000
<v Speaker 3>or where they come from, or what they're using, and

0:08:49.000 --> 0:08:51.320
<v Speaker 3>it's genuinely very hard to tell if someone is using

0:08:51.360 --> 0:08:54.200
<v Speaker 3>a solver, if someone has a computer that's not necessarily

0:08:54.240 --> 0:08:57.600
<v Speaker 3>the one they're using running in the background, it's very

0:08:57.600 --> 0:09:00.640
<v Speaker 3>difficult to tell. And I think what most people who

0:09:00.640 --> 0:09:03.439
<v Speaker 3>play the game online don't realize is just how widespread

0:09:03.520 --> 0:09:06.960
<v Speaker 3>this is. It's almost impossible to stop what did.

0:09:06.840 --> 0:09:09.040
<v Speaker 1>This moment crystallize for you and why did you start

0:09:09.080 --> 0:09:09.680
<v Speaker 1>the story here.

0:09:10.040 --> 0:09:12.800
<v Speaker 3>This was early days in the poker bot era, and

0:09:13.040 --> 0:09:15.960
<v Speaker 3>I think back then very few people knew poker bots existed.

0:09:16.760 --> 0:09:19.360
<v Speaker 3>I liked the idea that one of the world's best

0:09:19.520 --> 0:09:22.480
<v Speaker 3>proponents of this particular game of poker could be defeated

0:09:22.520 --> 0:09:24.880
<v Speaker 3>by a complete nobody in the poker space. This guy

0:09:24.920 --> 0:09:27.880
<v Speaker 3>had no reputation. If anything, his reputation online was all

0:09:27.880 --> 0:09:29.920
<v Speaker 3>sorts of things that had nothing to do with poker.

0:09:30.200 --> 0:09:33.960
<v Speaker 3>He had a kind of clownish, cartoonish online persona. You know,

0:09:34.000 --> 0:09:37.000
<v Speaker 3>it's the idea of Novak Djokovic losing to someone from

0:09:37.000 --> 0:09:39.400
<v Speaker 3>your local tennis club at tennis. It's just so improbable,

0:09:39.640 --> 0:09:41.320
<v Speaker 3>and you have to look at why that would happen.

0:09:41.520 --> 0:09:43.520
<v Speaker 3>And the answer led me to pokabots.

0:09:43.360 --> 0:09:47.880
<v Speaker 1>And in particular the bot farm Corporation. Yeah, paint of

0:09:47.920 --> 0:09:50.920
<v Speaker 1>a picture of their lives in Siberia, these young men

0:09:51.280 --> 0:09:53.200
<v Speaker 1>and how they got started.

0:09:53.360 --> 0:09:55.240
<v Speaker 3>Yeah, this was fascinating to learn about. I mean, I

0:09:55.280 --> 0:09:57.319
<v Speaker 3>had a sort of specific image in my mind of

0:09:57.880 --> 0:10:00.720
<v Speaker 3>what bot farmers would look like. She I think the

0:10:00.760 --> 0:10:02.760
<v Speaker 3>reality of it was slightly different to what I expected.

0:10:03.400 --> 0:10:07.080
<v Speaker 3>I'd imagined one sort of big poker kingpin with a

0:10:07.080 --> 0:10:09.240
<v Speaker 3>garage full of computers and a bunch of employees, but

0:10:09.679 --> 0:10:11.560
<v Speaker 3>in reality it was a bunch of sort of nerdy

0:10:11.600 --> 0:10:14.960
<v Speaker 3>students that two technical colleges in this remote region of

0:10:15.000 --> 0:10:19.360
<v Speaker 3>Siberia where they have very good computing courses. So these

0:10:19.440 --> 0:10:23.679
<v Speaker 3>kids were spending all day doing very advanced courses in

0:10:23.760 --> 0:10:26.680
<v Speaker 3>software and programming and machine logic and mathematics and physics.

0:10:26.840 --> 0:10:30.320
<v Speaker 3>And this happened at around the time that online poker

0:10:30.360 --> 0:10:32.560
<v Speaker 3>was really getting going, it was really becoming bigger businesses.

0:10:32.600 --> 0:10:34.160
<v Speaker 3>It was two thousand and one, two thousand and two,

0:10:34.800 --> 0:10:37.000
<v Speaker 3>for the first time, really you could have a game

0:10:37.040 --> 0:10:39.640
<v Speaker 3>of poker against someone anywhere in the world online, any

0:10:39.640 --> 0:10:42.200
<v Speaker 3>time of day and night, for real money. And these

0:10:42.280 --> 0:10:45.319
<v Speaker 3>kids started playing. They realized they were good, and they

0:10:45.360 --> 0:10:47.840
<v Speaker 3>got better, and they realized also that they could make

0:10:47.880 --> 0:10:51.400
<v Speaker 3>a lot of money, mainly playing American people who thought

0:10:51.400 --> 0:10:54.000
<v Speaker 3>they were fantastic at poker and logged on after a

0:10:54.000 --> 0:10:56.080
<v Speaker 3>hard day at work and didn't realize they were playing.

0:10:56.120 --> 0:10:59.719
<v Speaker 3>A math PhD who had studied game theory was using

0:10:59.720 --> 0:11:02.560
<v Speaker 3>an on training tool to play nearly perfect poker. So

0:11:03.000 --> 0:11:04.960
<v Speaker 3>initially they made a lot of money, just a bunch

0:11:05.000 --> 0:11:07.240
<v Speaker 3>of students getting together on the top floor of a campus.

0:11:07.360 --> 0:11:08.800
<v Speaker 1>They're just playing. They were playing as players.

0:11:08.840 --> 0:11:11.920
<v Speaker 3>They as human the human but they but they had

0:11:12.000 --> 0:11:15.040
<v Speaker 3>learnt the science of poker, and there is a mathematical

0:11:15.120 --> 0:11:17.440
<v Speaker 3>science behind poker. If you're willing to put in the

0:11:17.440 --> 0:11:19.400
<v Speaker 3>house and you have that kind of brain, it's a

0:11:19.400 --> 0:11:23.839
<v Speaker 3>distinct advantage, especially playing everyday folks who don't know those things.

0:11:24.280 --> 0:11:26.520
<v Speaker 3>So they were making good money just playing human to human.

0:11:26.640 --> 0:11:31.480
<v Speaker 3>But these Russian colleges, they are excellent farms for very

0:11:31.520 --> 0:11:34.920
<v Speaker 3>tech minded people, and so it wasn't long before they

0:11:34.920 --> 0:11:38.480
<v Speaker 3>started applying that that technology to the game of poker.

0:11:38.640 --> 0:11:41.600
<v Speaker 3>And it didn't take long to realize that you can

0:11:41.640 --> 0:11:44.800
<v Speaker 3>have a piece of software running. It can play twenty

0:11:44.800 --> 0:11:46.840
<v Speaker 3>four hours a day. It doesn't need a break, it

0:11:46.840 --> 0:11:48.720
<v Speaker 3>doesn't need food, you don't need to pay it, and

0:11:48.760 --> 0:11:50.839
<v Speaker 3>it will play much better poker than the average human.

0:11:51.400 --> 0:11:53.760
<v Speaker 3>And you can scale it almost infinitely. As long as

0:11:53.800 --> 0:11:56.560
<v Speaker 3>you have the ability to create accounts. You can have

0:11:56.600 --> 0:11:59.040
<v Speaker 3>as many bots playing as you want. And so they

0:11:59.080 --> 0:12:04.520
<v Speaker 3>thought transitioned greatly from humans playing less capable humans online

0:12:05.000 --> 0:12:08.480
<v Speaker 3>to having lots of computers run this software automatically and

0:12:08.600 --> 0:12:11.040
<v Speaker 3>only being sort of broadly supervised by a few tech

0:12:11.080 --> 0:12:13.520
<v Speaker 3>operators who kept on yet things to make sure nothing

0:12:13.600 --> 0:12:15.920
<v Speaker 3>was going wrong. And they made millions and millions and

0:12:15.960 --> 0:12:17.440
<v Speaker 3>millions of dollars in those early years.

0:12:17.720 --> 0:12:19.840
<v Speaker 1>And at what point did they start to attract the

0:12:19.960 --> 0:12:24.240
<v Speaker 1>notice of investors and also local police.

0:12:24.600 --> 0:12:27.280
<v Speaker 3>Well, I think they attracted the attention of local police

0:12:27.320 --> 0:12:32.160
<v Speaker 3>because the dorm was busy all hours of day and night.

0:12:32.240 --> 0:12:34.640
<v Speaker 3>They were playing mostly people on the side of the world.

0:12:34.920 --> 0:12:39.239
<v Speaker 3>Lots of students would arrive wearing their hoodies and marching upstairs,

0:12:39.280 --> 0:12:42.120
<v Speaker 3>and you know, eleven o'clock at night, and there was

0:12:42.160 --> 0:12:44.920
<v Speaker 3>activity all through the night. So the neighbors complained and

0:12:44.960 --> 0:12:47.600
<v Speaker 3>the local police came round, and I guess they assumed

0:12:47.600 --> 0:12:50.440
<v Speaker 3>it with sun criminal operation, and so they invited the

0:12:50.440 --> 0:12:52.520
<v Speaker 3>cops in and just showed them the computers with the

0:12:52.559 --> 0:12:55.000
<v Speaker 3>poker on the screen, saying, we're just playing poker.

0:12:54.760 --> 0:12:56.880
<v Speaker 1>Which is ripping off Americans, how about it.

0:12:57.080 --> 0:12:59.320
<v Speaker 3>I mean, I'm sure the Russian police were quite work

0:13:00.040 --> 0:13:02.040
<v Speaker 3>well unhappy about what was going on, but it was

0:13:02.040 --> 0:13:04.800
<v Speaker 3>so easy to scale it. And I think the key

0:13:04.800 --> 0:13:08.000
<v Speaker 3>thing to remember is that their starting point was a

0:13:08.080 --> 0:13:10.720
<v Speaker 3>very high level of knowledge and a very scientific approach

0:13:10.760 --> 0:13:13.280
<v Speaker 3>to poker. And you know, over the course of six, seven,

0:13:13.360 --> 0:13:16.120
<v Speaker 3>eight years, they just got stronger and stronger and stronger.

0:13:16.400 --> 0:13:19.720
<v Speaker 3>You know, every single month this system operated, it got

0:13:19.760 --> 0:13:24.960
<v Speaker 3>better at playing poker. By twenty ten, twenty eleven, the

0:13:25.000 --> 0:13:29.600
<v Speaker 3>system was able to play an individual human opponent, analyze

0:13:29.760 --> 0:13:32.839
<v Speaker 3>that human's track record in poker, every game they've ever

0:13:32.840 --> 0:13:36.520
<v Speaker 3>played online because you can buy game records. So if

0:13:36.559 --> 0:13:38.080
<v Speaker 3>you're a habitual poker player and you.

0:13:38.200 --> 0:13:40.040
<v Speaker 1>Pay perfect knowledge of your opponent.

0:13:39.800 --> 0:13:42.120
<v Speaker 3>Perfect knowledge of your opponent's games, all the mistakes they've

0:13:42.120 --> 0:13:43.959
<v Speaker 3>made over the last couple of years, all the weaknesses

0:13:44.040 --> 0:13:47.160
<v Speaker 3>in their game, and the system could spot those weaknesses

0:13:47.160 --> 0:13:50.120
<v Speaker 3>and taylor of its own approach to the specific weaknesses

0:13:50.120 --> 0:13:53.000
<v Speaker 3>of its opponent. And that's really that's where the real

0:13:53.040 --> 0:13:56.520
<v Speaker 3>mind is in poker. I mean, all human poker players

0:13:56.559 --> 0:13:58.760
<v Speaker 3>have winknesses in the game. It's natural that will happen.

0:13:58.880 --> 0:14:02.480
<v Speaker 3>If you're able to algorithmically analyze them and exploit them,

0:14:03.000 --> 0:14:05.160
<v Speaker 3>then you know you will win vastly more money than

0:14:05.160 --> 0:14:05.880
<v Speaker 3>you lose. And they did.

0:14:06.840 --> 0:14:09.360
<v Speaker 1>This was back in twenty eleven. Was kind of a

0:14:09.360 --> 0:14:11.480
<v Speaker 1>heyday of this. But your story obviously came out in

0:14:11.480 --> 0:14:14.480
<v Speaker 1>twenty twenty four, So I want to kind of get

0:14:14.480 --> 0:14:16.320
<v Speaker 1>through all the steps that take us from twenty eleven

0:14:16.320 --> 0:14:18.360
<v Speaker 1>to twenty twenty four. What was the kind of urgency

0:14:18.480 --> 0:14:20.920
<v Speaker 1>that you and your editors wanted to run it now

0:14:21.200 --> 0:14:22.000
<v Speaker 1>rather than back then.

0:14:22.400 --> 0:14:25.320
<v Speaker 3>The main reason to do the story when we did

0:14:25.320 --> 0:14:27.640
<v Speaker 3>it was that no one had done this before. I

0:14:27.720 --> 0:14:30.560
<v Speaker 3>had never been had someone show me where the poker

0:14:30.600 --> 0:14:33.560
<v Speaker 3>blots come from. I've had read lots of stories about

0:14:33.640 --> 0:14:37.400
<v Speaker 3>academics in Pittsburgh and Alberta, Canada, sitting in their offices

0:14:37.600 --> 0:14:42.160
<v Speaker 3>and you know, crafting these ingenious, artificially intelligent poker programs.

0:14:42.160 --> 0:14:43.840
<v Speaker 3>But they didn't do it to make money. They did

0:14:43.880 --> 0:14:45.920
<v Speaker 3>it to sort of test the boundaries of what machines

0:14:45.960 --> 0:14:49.160
<v Speaker 3>could do. Anyone who's played online poker knows there are

0:14:49.200 --> 0:14:51.720
<v Speaker 3>bots out there, So I just I was curious to

0:14:51.760 --> 0:14:54.760
<v Speaker 3>know what kind of person does it purely for the money?

0:14:54.840 --> 0:14:56.240
<v Speaker 3>How good do you have to be? How do you

0:14:56.280 --> 0:14:58.480
<v Speaker 3>get into that job? And so there was a big

0:14:58.520 --> 0:15:00.920
<v Speaker 3>hole in our knowledge of this, and so I went

0:15:00.960 --> 0:15:04.920
<v Speaker 3>looking trying to fill it. And botting Artificial intelligence has

0:15:04.960 --> 0:15:07.680
<v Speaker 3>been a reality of poker for a long time, and

0:15:07.720 --> 0:15:09.920
<v Speaker 3>I don't think that that has ever changed, and it

0:15:09.960 --> 0:15:11.120
<v Speaker 3>probably will never change.

0:15:11.640 --> 0:15:13.720
<v Speaker 1>I thought, you know, poker is obviously a game of

0:15:14.040 --> 0:15:17.840
<v Speaker 1>incentives and motives and reading your opponent and direction and misdirection.

0:15:18.400 --> 0:15:20.440
<v Speaker 1>So I'm very attracted to this quote and your piece,

0:15:20.440 --> 0:15:25.000
<v Speaker 1>which was neither professionals nor poker providers want to acknowledge

0:15:25.040 --> 0:15:29.120
<v Speaker 1>the presence of intelligent machines for fear of deterring the

0:15:29.200 --> 0:15:33.880
<v Speaker 1>new players whose money keeps the game afloat. Explain that, well, yeah,

0:15:33.880 --> 0:15:35.320
<v Speaker 1>this was the big challenge of the story.

0:15:35.400 --> 0:15:38.520
<v Speaker 3>I mean, no one involved in the poker industry wants

0:15:38.520 --> 0:15:39.600
<v Speaker 3>to talk about poker bots.

0:15:40.200 --> 0:15:40.360
<v Speaker 2>Now.

0:15:40.440 --> 0:15:44.440
<v Speaker 3>Arguably, the new reality of poker is dominated by technology.

0:15:44.480 --> 0:15:47.280
<v Speaker 3>It has changed the way even human professionels play the game.

0:15:47.880 --> 0:15:49.680
<v Speaker 3>I think you'd be a fool to think that most

0:15:49.720 --> 0:15:53.400
<v Speaker 3>online markets aren't absolutely crawling with bots. Yet if you

0:15:53.480 --> 0:15:55.440
<v Speaker 3>talk to the big providers, they just don't want to

0:15:55.480 --> 0:15:58.440
<v Speaker 3>talk about it. They don't want to acknowledge the presence

0:15:58.480 --> 0:16:01.080
<v Speaker 3>of bots on their system. They don't want to talk

0:16:01.080 --> 0:16:04.080
<v Speaker 3>about where bots come from. And it's a simple reason

0:16:04.080 --> 0:16:06.320
<v Speaker 3>for that is that they rely on new money. They

0:16:06.320 --> 0:16:08.880
<v Speaker 3>rely on people like me and you deciding we want

0:16:08.880 --> 0:16:10.960
<v Speaker 3>to have a go online poker and logging on investing

0:16:10.960 --> 0:16:14.680
<v Speaker 3>our hard earned dollars in a game of poker. If

0:16:14.720 --> 0:16:17.760
<v Speaker 3>they sort of acknowledge the existence of these unbeatabule machines

0:16:17.880 --> 0:16:22.200
<v Speaker 3>in their ecosystem, it doesn't help them commercially. So there's

0:16:22.240 --> 0:16:25.720
<v Speaker 3>just no information out there. Conversely that people who make

0:16:25.760 --> 0:16:27.520
<v Speaker 3>money from poker bots don't really want to talk about

0:16:27.560 --> 0:16:30.040
<v Speaker 3>it either because they kind of their business model relies

0:16:30.080 --> 0:16:33.680
<v Speaker 3>on secrecy. If people know who they are every platform

0:16:33.720 --> 0:16:37.160
<v Speaker 3>they play on, they'll be excluded, they'll be banned, their

0:16:37.200 --> 0:16:40.280
<v Speaker 3>winnings will be seized. So with secrecy on both sides,

0:16:40.320 --> 0:16:42.400
<v Speaker 3>So what that letter is a big void of information

0:16:42.920 --> 0:16:46.000
<v Speaker 3>and lots of sort of crazy online speculation and conspiracy

0:16:46.000 --> 0:16:48.440
<v Speaker 3>theories that weren't based in reality at all.

0:16:48.600 --> 0:16:50.600
<v Speaker 1>What would it be like as a normal if you're

0:16:50.600 --> 0:16:53.680
<v Speaker 1>listening to this podcast and you're playing online poker. Would

0:16:53.680 --> 0:16:55.480
<v Speaker 1>you be able to tell if you're playing against a bot?

0:16:55.520 --> 0:16:57.840
<v Speaker 1>Are there only tells that bots have? I don't think

0:16:57.840 --> 0:16:58.480
<v Speaker 1>you can tell.

0:16:58.560 --> 0:16:58.640
<v Speaker 2>No.

0:16:59.080 --> 0:17:02.000
<v Speaker 3>I think the experience of losing to a very good

0:17:02.080 --> 0:17:06.640
<v Speaker 3>game theory optimal poker bot, it's a series of situations

0:17:06.640 --> 0:17:09.520
<v Speaker 3>that just go against you inexplicably. It feels like you're

0:17:09.520 --> 0:17:11.600
<v Speaker 3>getting rotten luck over and over and over and over

0:17:11.640 --> 0:17:14.000
<v Speaker 3>and over and over again. When you have an advantage

0:17:14.040 --> 0:17:16.400
<v Speaker 3>in a game like poker, it doesn't manifest as one big,

0:17:16.480 --> 0:17:19.439
<v Speaker 3>dramatic win. It's not the big, showy hand that gets you.

0:17:19.680 --> 0:17:21.879
<v Speaker 3>It's the one hundred hands, it's the two hundred hands.

0:17:22.240 --> 0:17:24.399
<v Speaker 3>And if he speak to people who work with poker bots,

0:17:24.720 --> 0:17:26.680
<v Speaker 3>they're not worried about a single hand of poker. It's

0:17:26.720 --> 0:17:29.720
<v Speaker 3>not where interests them. They're interested in the plus minus

0:17:29.800 --> 0:17:32.160
<v Speaker 3>dollar value after a thousand hands. That's where the real

0:17:32.240 --> 0:17:34.239
<v Speaker 3>value is to them. So actually, I don't think it's

0:17:34.320 --> 0:17:37.479
<v Speaker 3>very fun playing poker bots. One of the characteristics of

0:17:37.600 --> 0:17:40.159
<v Speaker 3>good game theory oatical poker is that there's loads of

0:17:40.200 --> 0:17:43.439
<v Speaker 3>action pre flop. That means that when you're playing poker,

0:17:43.440 --> 0:17:46.000
<v Speaker 3>before the community cards have even been put down the table,

0:17:46.320 --> 0:17:48.800
<v Speaker 3>before you see what the possible hands might be, you

0:17:49.280 --> 0:17:52.639
<v Speaker 3>get dealt your two whole cards. Poker bots game theory

0:17:52.680 --> 0:17:55.800
<v Speaker 3>tells you you must bet aggressively before the community cards

0:17:55.840 --> 0:17:58.240
<v Speaker 3>are down, which works. You know you're more likely to

0:17:58.280 --> 0:18:01.240
<v Speaker 3>win or lose hands if you do that effective, but

0:18:01.359 --> 0:18:04.080
<v Speaker 3>it's boring. It means you don't get those dramatic moments

0:18:04.080 --> 0:18:07.200
<v Speaker 3>of one card, two card, three card, what have I got?

0:18:07.400 --> 0:18:10.400
<v Speaker 3>You don't get those big showdowns. So I think it's

0:18:10.400 --> 0:18:13.919
<v Speaker 3>boring and frustrating, quite frankly, to lose slowly to a

0:18:13.960 --> 0:18:14.960
<v Speaker 3>poker bot online.

0:18:15.160 --> 0:18:17.680
<v Speaker 1>So the providers didn't want to talk, the poker bot

0:18:18.359 --> 0:18:22.760
<v Speaker 1>makers didn't want to talk, and yet you got the story.

0:18:23.080 --> 0:18:25.240
<v Speaker 3>Yeah, it was a tough one. It tried all sorts

0:18:25.240 --> 0:18:27.360
<v Speaker 3>of things to get to the bottom of it, and eventually,

0:18:27.400 --> 0:18:30.040
<v Speaker 3>I think it was just persistence paid off. I had

0:18:30.080 --> 0:18:32.920
<v Speaker 3>bothered enough people that would eventually reached the guys who

0:18:32.920 --> 0:18:34.679
<v Speaker 3>built this software that I was doing it, and they

0:18:34.680 --> 0:18:36.800
<v Speaker 3>got in touch with me, and that was pure luck.

0:18:37.080 --> 0:18:38.760
<v Speaker 3>And it just so happened that they had reached a

0:18:38.800 --> 0:18:40.680
<v Speaker 3>stage in their careers where they were ready to talk.

0:18:40.760 --> 0:18:45.160
<v Speaker 3>You know, their business model had changed somewhat, and they

0:18:45.200 --> 0:18:47.520
<v Speaker 3>seemed quite keen to tell me what they were looking

0:18:47.560 --> 0:18:49.359
<v Speaker 3>at doing next and tell me their big plans for

0:18:50.000 --> 0:18:52.919
<v Speaker 3>the next poker revolution that they wanted to oversee. I

0:18:52.920 --> 0:18:54.880
<v Speaker 3>think if I'd approached them ten years ago, I don't

0:18:54.880 --> 0:18:55.960
<v Speaker 3>think they would have talked.

0:19:03.359 --> 0:19:06.680
<v Speaker 1>After the break kip me to the humans behind the

0:19:06.760 --> 0:19:24.120
<v Speaker 1>Russian bots. Stay with us, So how did they approach

0:19:24.200 --> 0:19:27.560
<v Speaker 1>you and did you have any red flags when you

0:19:27.600 --> 0:19:32.920
<v Speaker 1>got inbound from purported Russian poker bot Manager Farm Manager.

0:19:33.520 --> 0:19:36.119
<v Speaker 3>I had a few red flags. I mean, there was

0:19:36.200 --> 0:19:38.719
<v Speaker 3>some quite scary stuff online about who they were and

0:19:38.720 --> 0:19:41.760
<v Speaker 3>what they were about, and of course the mental associations

0:19:41.800 --> 0:19:44.840
<v Speaker 3>that go with a black market Russian poker operation. You

0:19:44.840 --> 0:19:47.879
<v Speaker 3>can imagine there might be some scary people involved in that.

0:19:48.640 --> 0:19:52.560
<v Speaker 3>I'd spend possibly a year, I think, trying to talk

0:19:52.600 --> 0:19:56.000
<v Speaker 3>to these guys, trying to find them, researching every aspect

0:19:56.000 --> 0:19:58.520
<v Speaker 3>of their businesses. I knew that there were six or

0:19:58.560 --> 0:20:01.320
<v Speaker 3>seven Russian company needs that they were linked to, but

0:20:01.400 --> 0:20:04.520
<v Speaker 3>there was no online information about them. So I basically

0:20:04.800 --> 0:20:07.439
<v Speaker 3>just called everyone that I could find that had the

0:20:07.440 --> 0:20:10.359
<v Speaker 3>loosest connection to those companies and ask them about what

0:20:10.400 --> 0:20:12.080
<v Speaker 3>they did and how they did it. After I've been

0:20:12.080 --> 0:20:15.240
<v Speaker 3>doing this for a few months, one of my encrypted

0:20:15.280 --> 0:20:18.560
<v Speaker 3>messages services popped up and it was, you know, a

0:20:18.600 --> 0:20:22.160
<v Speaker 3>message from someone claiming to be from Neo Cores, which

0:20:22.200 --> 0:20:25.879
<v Speaker 3>is the bot farm operation, and they told me they

0:20:25.880 --> 0:20:28.479
<v Speaker 3>were thinking about breaking their silence and talking about their

0:20:28.520 --> 0:20:30.520
<v Speaker 3>business for the first time, and I had to meet

0:20:30.520 --> 0:20:33.000
<v Speaker 3>them face to face and the only place we could

0:20:33.000 --> 0:20:35.280
<v Speaker 3>do that was Armenia. Journalists can't really go to Russia

0:20:35.320 --> 0:20:38.040
<v Speaker 3>these days, and there's limited places they can go, but

0:20:38.119 --> 0:20:41.400
<v Speaker 3>Armenia is a friendly neighboring country, and so I flew

0:20:41.440 --> 0:20:43.560
<v Speaker 3>out to Armenia and they showed up in a couple

0:20:43.560 --> 0:20:47.600
<v Speaker 3>of big SUVs with tinted windows, and we were sitting

0:20:47.800 --> 0:20:50.640
<v Speaker 3>in the shadow of Mount araw Rat in a vineyard,

0:20:51.320 --> 0:20:52.960
<v Speaker 3>which they chose as the place to have our big

0:20:52.960 --> 0:20:55.680
<v Speaker 3>sit down interview. I think the quite what to expect,

0:20:55.680 --> 0:20:57.960
<v Speaker 3>but you know, as always, the reality of things is

0:20:58.000 --> 0:21:01.159
<v Speaker 3>never as intimidating as your imagination of it. And what

0:21:01.240 --> 0:21:04.200
<v Speaker 3>I met was a bunch of very smart guys, kind

0:21:04.200 --> 0:21:07.040
<v Speaker 3>of nerdy guys who are fascinated by maths and game

0:21:07.080 --> 0:21:10.600
<v Speaker 3>theory and technology, who had built, actually, you know, whatever

0:21:10.640 --> 0:21:14.760
<v Speaker 3>you think about poker bots, an ingenious system for exploiting

0:21:14.760 --> 0:21:17.119
<v Speaker 3>winkses in the poker market, and they'd be doing it

0:21:17.160 --> 0:21:19.960
<v Speaker 3>longer than anyone else. And I went through all the

0:21:19.960 --> 0:21:22.600
<v Speaker 3>different evolutions of this poke bot business, from the start

0:21:22.640 --> 0:21:25.480
<v Speaker 3>in Siberia all the way through to the most modern one,

0:21:25.480 --> 0:21:28.240
<v Speaker 3>which is Deplay, which is kind of an artificial intelligence company.

0:21:28.359 --> 0:21:30.199
<v Speaker 3>At this point, no one had connected them all, and

0:21:30.480 --> 0:21:32.919
<v Speaker 3>as I went through all of those different iterations of

0:21:32.920 --> 0:21:35.359
<v Speaker 3>the business, they said, yes, that was us, so the

0:21:35.400 --> 0:21:38.280
<v Speaker 3>same like three or four guys were the architects of

0:21:38.280 --> 0:21:41.480
<v Speaker 3>the whole system, and that's like two decades worth of

0:21:41.480 --> 0:21:44.960
<v Speaker 3>poker experience there. It was fascinating to hear them talk

0:21:45.000 --> 0:21:47.639
<v Speaker 3>so openly about what they did. Their oversight of the

0:21:47.840 --> 0:21:51.040
<v Speaker 3>online poker gave them a unique view of how the

0:21:51.040 --> 0:21:54.240
<v Speaker 3>whole thing works. You know, they weren't providers, they weren't

0:21:54.320 --> 0:21:57.560
<v Speaker 3>running poker sides, they weren't players, they weren't just playing

0:21:57.600 --> 0:21:59.960
<v Speaker 3>themselves for their own profit. They had enormous reams of

0:22:00.119 --> 0:22:02.280
<v Speaker 3>data in how this whole market operates.

0:22:02.840 --> 0:22:05.719
<v Speaker 1>What has changed in their business model that makes them,

0:22:06.160 --> 0:22:08.720
<v Speaker 1>timing wise, want to speak to you last year.

0:22:09.320 --> 0:22:13.080
<v Speaker 3>I think they've they've been through an evolution of their

0:22:13.200 --> 0:22:15.920
<v Speaker 3>view of poker. I mean, obviously they've always made money

0:22:15.920 --> 0:22:18.800
<v Speaker 3>from poker, and they still are, but I think they've

0:22:18.880 --> 0:22:22.200
<v Speaker 3>recognized that the online poker market the way it exists

0:22:22.240 --> 0:22:25.679
<v Speaker 3>now isn't sustainable. At least that's what they believe because

0:22:25.680 --> 0:22:28.639
<v Speaker 3>they are essentially involved thousands of times a day in

0:22:28.760 --> 0:22:32.639
<v Speaker 3>playing online poker against opponents on various different platforms. They know,

0:22:32.760 --> 0:22:36.680
<v Speaker 3>for example, that the average player who joins online poker

0:22:37.080 --> 0:22:40.000
<v Speaker 3>an online poker site and invests money will leave much

0:22:40.040 --> 0:22:42.560
<v Speaker 3>more quickly than was the case ten years ago. So

0:22:42.560 --> 0:22:44.919
<v Speaker 3>people are logging on to play online poker and try it,

0:22:45.000 --> 0:22:47.000
<v Speaker 3>thinking that it's going to be fun, and they're quickly

0:22:47.000 --> 0:22:50.520
<v Speaker 3>discovering that it's not very fun, losing their money and leaving. Now,

0:22:50.800 --> 0:22:53.199
<v Speaker 3>the whole of the online poker economy is structured like

0:22:53.200 --> 0:22:56.240
<v Speaker 3>a pyramid. At that bottom rung of new money coming

0:22:56.280 --> 0:22:58.600
<v Speaker 3>in funds the whole thing right up to the very

0:22:58.600 --> 0:23:00.919
<v Speaker 3>top of the Chris money makers who you know, the

0:23:00.920 --> 0:23:02.840
<v Speaker 3>guys that you see in the World Series of Poker

0:23:02.840 --> 0:23:05.679
<v Speaker 3>in Las Vegas on the final table. None of it

0:23:05.720 --> 0:23:07.840
<v Speaker 3>works unless you have that bottom rung of new money

0:23:07.880 --> 0:23:10.760
<v Speaker 3>coming in funding the whole thing. And I think they

0:23:10.840 --> 0:23:14.320
<v Speaker 3>recognize that the game really may not exist anymore if

0:23:14.960 --> 0:23:17.600
<v Speaker 3>it becomes too easy for machines to compete against humans

0:23:17.640 --> 0:23:18.200
<v Speaker 3>and beat them.

0:23:18.440 --> 0:23:21.000
<v Speaker 1>Too many poker bots have killed the golden goose of

0:23:21.040 --> 0:23:23.840
<v Speaker 1>the bottom layer of the pyramid. Essentially, that's exactly it.

0:23:24.040 --> 0:23:27.000
<v Speaker 3>And actually it's not just poker bots either, it's the

0:23:27.080 --> 0:23:31.280
<v Speaker 3>whole atmosphere around the poker economy. It's, you know, it's

0:23:31.320 --> 0:23:34.280
<v Speaker 3>how intimidating it can be, how unfriendly it can be,

0:23:34.480 --> 0:23:37.119
<v Speaker 3>how competitive it can be. If you're not losing to

0:23:37.119 --> 0:23:39.520
<v Speaker 3>a Russian poker bot, you know, there's every chance you'll

0:23:39.560 --> 0:23:44.160
<v Speaker 3>be losing to a Brazilian PhD student who is simply

0:23:44.520 --> 0:23:48.040
<v Speaker 3>better at processing information than you are. But the point is,

0:23:48.080 --> 0:23:50.840
<v Speaker 3>it's it's just not fun to lose so quickly. So

0:23:50.960 --> 0:23:53.840
<v Speaker 3>they recognize that there is a love of poker. People

0:23:53.880 --> 0:23:56.280
<v Speaker 3>are very passionate about the enjoy playing it. But I

0:23:56.280 --> 0:23:59.240
<v Speaker 3>think their view is that that the new poker economy

0:23:59.320 --> 0:24:01.840
<v Speaker 3>needs to be more welcoming. It needs to be more friendly,

0:24:02.119 --> 0:24:04.080
<v Speaker 3>and it needs to be more tailored to welcome in

0:24:04.160 --> 0:24:07.359
<v Speaker 3>new people rather than just driving them away. You know,

0:24:07.920 --> 0:24:10.520
<v Speaker 3>to use the tennis example again, if you want to

0:24:10.520 --> 0:24:12.880
<v Speaker 3>expand the game of tennis, you don't just pit your

0:24:12.880 --> 0:24:15.760
<v Speaker 3>club players against the local pro who beat them six love,

0:24:15.800 --> 0:24:17.639
<v Speaker 3>six love, six love. Then they go home and they

0:24:17.640 --> 0:24:20.840
<v Speaker 3>never play again. But that's what happens in the poker market.

0:24:21.040 --> 0:24:23.360
<v Speaker 1>So looks the business models. Let them win a bit

0:24:23.400 --> 0:24:26.119
<v Speaker 1>and sacrifice a bit of margin in favor of more volume.

0:24:26.240 --> 0:24:29.639
<v Speaker 3>Essentially, the business model is the margin is people playing,

0:24:30.440 --> 0:24:32.560
<v Speaker 3>so they should be playing in a way that makes

0:24:32.560 --> 0:24:35.560
<v Speaker 3>them want to play more, and the poker coonry hasn't

0:24:35.600 --> 0:24:38.800
<v Speaker 3>been particularly good at that so far, and they are

0:24:38.800 --> 0:24:42.119
<v Speaker 3>looking for a new way to sort of structure the

0:24:42.119 --> 0:24:44.960
<v Speaker 3>payment system and make sure that you're not playing against

0:24:45.000 --> 0:24:47.719
<v Speaker 3>people who are twenty thirty levels above you make it

0:24:47.800 --> 0:24:50.760
<v Speaker 3>more fair, more fun. And it's ironic really that the

0:24:50.760 --> 0:24:52.320
<v Speaker 3>people who are trying to do this are the same

0:24:52.320 --> 0:24:55.760
<v Speaker 3>ones that have helped make poker such an inhospitable place.

0:24:56.160 --> 0:24:57.919
<v Speaker 1>Well, so they're really I mean, is that the spiers

0:24:57.920 --> 0:25:00.560
<v Speaker 1>who came in from the cold, who are based trying

0:25:00.600 --> 0:25:07.080
<v Speaker 1>to remake poker into a more equitable and slightly fairer arena,

0:25:07.240 --> 0:25:09.440
<v Speaker 1>perhaps so that more people play. I mean, that is

0:25:09.440 --> 0:25:13.520
<v Speaker 1>an intro is a very interesting and strange and unexpected inversion,

0:25:13.600 --> 0:25:15.560
<v Speaker 1>and that was kind of why they wanted to talk

0:25:15.560 --> 0:25:16.359
<v Speaker 1>to you at this moment.

0:25:16.400 --> 0:25:20.160
<v Speaker 3>You think, look, they're business people. They don't care about poker.

0:25:20.200 --> 0:25:22.600
<v Speaker 3>They don't even play poker anymore. These guys, you know,

0:25:22.600 --> 0:25:24.440
<v Speaker 3>they played in their youth, but it's it's a job

0:25:24.480 --> 0:25:26.840
<v Speaker 3>to them, you know, it's it's their career.

0:25:27.160 --> 0:25:29.520
<v Speaker 1>You mentioned the beginning that poker is a kind of

0:25:30.480 --> 0:25:35.240
<v Speaker 1>unusual subset of the kind of wider world of online gambling.

0:25:35.760 --> 0:25:39.600
<v Speaker 1>Looking at the wider world, how has technology changed an

0:25:39.640 --> 0:25:41.840
<v Speaker 1>AI in particular, changed gambling more broadly.

0:25:42.400 --> 0:25:44.600
<v Speaker 3>I mean, I really believe we're we're in the middle

0:25:44.600 --> 0:25:47.240
<v Speaker 3>of a revolution of online vetting, which has been led

0:25:47.240 --> 0:25:49.640
<v Speaker 3>by AI. I just don't think most people have realized

0:25:49.640 --> 0:25:52.239
<v Speaker 3>it yet, because most people who use these games for

0:25:52.400 --> 0:25:56.440
<v Speaker 3>leisure purposes, who bet on sports or horses, or play

0:25:56.440 --> 0:25:59.719
<v Speaker 3>online slot machines, they haven't yet realized that there's this

0:25:59.760 --> 0:26:02.720
<v Speaker 3>sub set of players out there who were using artificially

0:26:02.720 --> 0:26:06.120
<v Speaker 3>intelligent software to play the games in an optimal way.

0:26:06.800 --> 0:26:10.840
<v Speaker 3>This whole story goes back decades and there's a subculture.

0:26:10.880 --> 0:26:14.600
<v Speaker 3>There's a kind of subset of professional gamblers who are

0:26:14.680 --> 0:26:19.359
<v Speaker 3>very tech minded, very scientific, very mathematical, very bloodless in

0:26:19.400 --> 0:26:21.600
<v Speaker 3>the way they play the game. And they all emerge

0:26:21.640 --> 0:26:24.160
<v Speaker 3>from Las Vegas in the nineteen eighties, from the carve

0:26:24.240 --> 0:26:28.400
<v Speaker 3>counting circuit, and they applied that sort of advantage mindset

0:26:28.440 --> 0:26:31.680
<v Speaker 3>to technology, and they asked, you, what would happen if

0:26:31.720 --> 0:26:34.920
<v Speaker 3>we took our mathematical skills and we added the advantage

0:26:35.160 --> 0:26:39.280
<v Speaker 3>of terabytes of processing power? How much money could we make.

0:26:39.320 --> 0:26:41.840
<v Speaker 3>And it turns out what they discovered and what they've

0:26:41.840 --> 0:26:44.159
<v Speaker 3>been doing ever since the last forty years, is the

0:26:44.200 --> 0:26:46.960
<v Speaker 3>only profitable way to bet. They've been doing this in

0:26:47.000 --> 0:26:49.800
<v Speaker 3>secret for decades. They never talk about it because it's

0:26:49.840 --> 0:26:52.440
<v Speaker 3>their livelihood, and the casinos are quite happy not to

0:26:52.480 --> 0:26:54.359
<v Speaker 3>talk about it either, because they don't want anyone to

0:26:54.359 --> 0:26:57.920
<v Speaker 3>know their games are broken and vulnerable. But that's the reality.

0:26:58.240 --> 0:27:00.640
<v Speaker 3>It's like a secret arms race. And it was that

0:27:01.040 --> 0:27:04.040
<v Speaker 3>I found that whole world so fascinating that, you know,

0:27:04.080 --> 0:27:06.359
<v Speaker 3>I spent the last five years of my life writing

0:27:06.359 --> 0:27:08.800
<v Speaker 3>about it for Bloomberg, And I've got a book coming

0:27:08.800 --> 0:27:11.000
<v Speaker 3>out next year which is the sort of origin story

0:27:11.280 --> 0:27:14.080
<v Speaker 3>for how this new generation of tech gamblers came to exist.

0:27:14.840 --> 0:27:16.680
<v Speaker 1>The book's called Lucky Devil's.

0:27:16.560 --> 0:27:18.800
<v Speaker 3>That's correct, Yes, Simon and Schuster our next year.

0:27:19.280 --> 0:27:22.760
<v Speaker 1>There's a lot of movies, I mean, obviously the Ocean's franchise,

0:27:23.040 --> 0:27:25.720
<v Speaker 1>you know, front and center, but plenty of others as

0:27:25.760 --> 0:27:30.600
<v Speaker 1>well about gambling and beating the house and stuff. What

0:27:30.680 --> 0:27:36.560
<v Speaker 1>do you think makes the sort of human gambling winning

0:27:36.560 --> 0:27:40.359
<v Speaker 1>against the odds, ingenious ways to beat the system so

0:27:40.760 --> 0:27:44.000
<v Speaker 1>compelling to audiences and readers everywhere.

0:27:44.320 --> 0:27:47.760
<v Speaker 3>I think people recognize what it feels like to play

0:27:47.800 --> 0:27:52.879
<v Speaker 3>a rigged game. It's like modern capitalism encapsulated in a

0:27:52.920 --> 0:27:56.640
<v Speaker 3>kind of easily understandable format, in a relatable format. Most

0:27:56.720 --> 0:27:59.280
<v Speaker 3>people know what it feels like to spend your whole

0:27:59.320 --> 0:28:01.520
<v Speaker 3>life trying to play a game fairly and still lose,

0:28:01.920 --> 0:28:05.320
<v Speaker 3>whether it's your job, whether it's your love life. This

0:28:05.520 --> 0:28:07.399
<v Speaker 3>feeling that the world that the cards are kind of

0:28:07.440 --> 0:28:10.320
<v Speaker 3>against you, I think is very familiar, and that the

0:28:10.359 --> 0:28:14.920
<v Speaker 3>house the casino has become sort of metaphor for entrenched

0:28:15.080 --> 0:28:20.440
<v Speaker 3>wealth and power that basically makes the rules, changes the rules,

0:28:20.880 --> 0:28:23.480
<v Speaker 3>and acts for its own benefit in a way that's

0:28:23.560 --> 0:28:25.199
<v Speaker 3>very unfair for the majority of people.

0:28:25.520 --> 0:28:25.680
<v Speaker 1>Now.

0:28:25.680 --> 0:28:28.400
<v Speaker 3>I think that's that's undeniably true of the gambling business.

0:28:28.440 --> 0:28:31.480
<v Speaker 3>I think it's arguably true of modern politics and modern

0:28:31.480 --> 0:28:34.600
<v Speaker 3>economies around the world. And I think it's very relatable

0:28:34.640 --> 0:28:36.959
<v Speaker 3>to sort of get one over on the man. And

0:28:37.000 --> 0:28:39.520
<v Speaker 3>these guys are sort of in the minority that actually

0:28:39.520 --> 0:28:42.040
<v Speaker 3>were able to do it, and they didn't do it

0:28:42.040 --> 0:28:44.680
<v Speaker 3>by cheating. They did it just by their smarts. They

0:28:44.720 --> 0:28:47.080
<v Speaker 3>did it just by hard work. And that's what I

0:28:47.080 --> 0:28:50.960
<v Speaker 3>find compelling. I think is that it's a lifetime worth

0:28:50.960 --> 0:28:55.480
<v Speaker 3>of effort and grinding away to get that tiny advantage

0:28:55.480 --> 0:28:56.400
<v Speaker 3>and turn it into money.

0:28:56.720 --> 0:28:58.600
<v Speaker 1>Kitchen Well, thank you for joining us on tech Stuff.

0:28:58.720 --> 0:28:59.560
<v Speaker 3>Thanks Ausin.

0:29:24.200 --> 0:29:27.000
<v Speaker 1>For Tech Stuff. I'm as Voloscian and I'm Cara Price.

0:29:27.240 --> 0:29:30.600
<v Speaker 1>This episode was produced by Eliza Dennis, Melissa Slaughter, and

0:29:30.680 --> 0:29:34.360
<v Speaker 1>Tyler Hill. It was executive produced by me, Karra Price,

0:29:34.440 --> 0:29:39.000
<v Speaker 1>and Kate Osborne for Kaleidoscope and Katrian Norvel for iHeart Podcasts.

0:29:39.640 --> 0:29:42.640
<v Speaker 1>Kyle Murdoch mixed this episode and also wrote our theme song.

0:29:43.280 --> 0:29:45.760
<v Speaker 1>Join us on Friday for the Week in Tech. Karen

0:29:45.800 --> 0:29:47.520
<v Speaker 1>and I will run through all the biggest stories in

0:29:47.600 --> 0:29:51.240
<v Speaker 1>tech and the headlines you may have missed. Please do rate,

0:29:51.320 --> 0:29:54.160
<v Speaker 1>review and reach out to us at tech Stuff podcast

0:29:54.240 --> 0:30:05.520
<v Speaker 1>at gmail dot com.