Part IV: Financial Fraud · Internal Collusion & Employee Fraud

Scam #2: Paying Losing Bets / Pushing Losses (The “Soft Drop”)

How it works

The most brazen form of dealer collusion occurs when a dealer pays an accomplice on a losing hand or pushes a loss instead of collecting the bet. For example, in blackjack, a player with 18 against the dealer’s 19 would normally lose, but the dealer either pays the bet as if it won or pushes it. In a single session, just one such overpay can negate hours of house edge. If a dealer converts a loss to a win just once every 200 hands (approximately two hours of play), the player effectively gains a 0.5% advantage - completely reversing the house edge. The dealer uses misdirection techniques: paying during busy moments, while other players are distracted, or by combining the accomplice’s payout with other players’ legitimate wins.

Where it appears

Blackjack primarily, but applicable to baccarat, casino war, and other head-to-head games

On the record

In the 1997 Sands case, Vice President Roger McElfresh and dealer Laura Hernandez were arrested after Hernandez showed her hole card to McElfresh, allowing him to alter play. They stole approximately $20,000 over 113 hands before being caught by visual surveillance.

Published as a detection reference for surveillance, compliance and gaming-operations professionals. Thresholds and tuning are set by the property. Nothing here is instruction — the method is described so it can be recognised.