November 25, 2023 0 385

Making $15 000 000 in 3 Casinos in 6 Months — Who is Don Johnson, and How Did he Manage to Pull Off a Trick in Atlantic City?

When we talk about gamblers, we often imagine people taking big risks in casinos, desperate for a win. But that's not the case with Don Johnson. This poker player once raked in $5.8 million in just a 12-hour blackjack session and went on to win over $15.1 million from Atlantic City casinos. To understand how he pulled it off, let's take a closer look at who Don is and how he got into gambling.

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Don Johnson before the casino story

Okay, so Don Johnson is a business guy, running a software company called Heritage. He might not have gotten into gambling on his own, but he's been into games of chance since he was a kid.

Don Johnson, born in 1962 in Salem, Oregon, had a passion for horse racing since his early days. He spent much of his childhood at the racetrack, helping his uncle take care of racehorses. Don even aspired to become a jockey and pursued it seriously, participating in equestrian competitions at the age of 15. However, his dream of being a professional rider didn't work out.

There are a couple of stories explaining why. One version suggests that as a teenager, Don grew too tall, reaching 6 feet 1 inch (about 185 cm), making it difficult for him to compete with the smaller jockeys in terms of speed and maneuverability. Another version suggests that he faced health issues due to the demanding training and strict diets required for racing.

Despite leaving the world of horse racing, Don's interest in gambling persisted. At the age of 30, he joined Philadelphia Park, which is now called Parx Casino and Racing. He climbed the career ladder quickly, eventually becoming a casino executive. In his role as an executive director, Johnson regulated games and observed blackjack players, studying their strategies closely.

How Don's gambling journey began

Back in the day, Don wasn't anyone special. In 2001, he got into gambling, influenced by other players and the temptation of quick cash. He started with small bets, a whole decade before the scandal involving three casinos. Don began thinking about how to win at this game, especially favoring blackjack. The idea of taking on the casino one-on-one and coming out on top in what seemed like a losing situation really appealed to him.

In the beginning, Don wasn't winning much. But instead of giving up, he took it as a challenge. He learned how to play blackjack better and figured out effective strategies for winning.

Over time, his tactics paid off. Don Johnson transformed from an ordinary guy into a skilled and formidable player. Tony Rodio, who took over as CEO of Tropicana, remembers Don this way: "He played perfectly, always making the right decision in every situation."

"The Don Johnson Method" — System or Luck?

According to his own words, Don Johnson is not a naive newcomer to mathematics and can calculate probabilities on the fly. He doesn't just guess; he mathematically knows all his chances of winning against the establishment and uses that knowledge.

Johnson believes that, compared to horse racing, calculating odds in blackjack is much simpler. Many casinos themselves provide winning odds almost for free: gaming houses sell laminated charts in their gift shops, displaying optimal strategies for any situation in the game. But this is just a method — the odds are calculated by modeling millions of hands. As Johnson himself admits, he will never see "400 million hands."

According to Johnson's method, it's more useful to play fewer hands and pay attention to variations. He employs the principle of working with averages: the larger the sample size, the narrower the range of variations. A session of 600 hands, for example, is more likely to show wide fluctuations with more pronounced winning and losing streaks than standard casino graphs. Understanding this principle becomes crucial when setting betting conditions and special basic rules of the game, and Don Johnson's ability to set these conditions is what sets him apart from the average casino visitor.

Don claims that he doesn't count cards during the game. He remains silent about his signature moves, only stating that for successful blackjack play, he uses knowledge of mathematical laws, understanding how to regulate the range of bets correctly, and adheres to his own principles in the game.

For example, one of Johnson's key principles is that he has less desire to play than most people. He doesn't just enter a casino and start playing, like approximately 99% of casino visitors. According to him, this is equivalent to "throwing money to the wind." The rules of the game are structured so that gambling establishments always have a significant advantage. This doesn't mean that you cannot win at all by playing by the casino's standard rules. People sometimes win. But the vast majority of players lose, and the longer they play, the more they lose and the more they get sucked into the game.

Experienced gamblers don't follow the regular casino rules. Instead, they negotiate directly with the casino. Because casinos value big spenders more than the average customer, they are willing to give these high rollers better deals. This usually involves offering discounts, also known as "loss rebates." To break it down, if a player loses $100 000 at a blackjack table with a 10% discount, they only have to pay $90 000.

Casinos also provide perks to high rollers by giving them a big amount of free chips to kickstart their game. However, even with these privileges, the player still ends up losing money. According to Johnson's calculations, the combination of a few thousand free chips and the standard 10% discount means that after a few hours of playing, the player will have slightly less money. In short, losses are inevitable.

But in 2010, casinos started to worry. As revenue from table games dropped and the number of big players decreased, casinos began aggressively competing for those who were willing to spend large sums. During this time, the fate of the casino — whether they would end up making a profit or a loss that month, and even if they could start a game — depended on one high roller and whether it was their "unlucky day."

Inside the casino, there was a complicated financial situation that made the ongoing tension between marketers and gaming managers even more intense. Marketers always wanted to make the deals more attractive, while gaming managers aimed to maximize the casino's statistical advantage. However, as the revenues kept decreasing month after month, the marketers gained more influence.

By the end of 2010, some Atlantic City casinos were offering discounts as high as 20%. An industry expert named Pozner commented on this period, saying:

"Casinos started taking bigger risks to chase potential profits and became less afraid to push the limits."

Unfortunately for the casino, a guy named Johnson noticed these changes. He realized that now he had a chance to compete more equally with the casinos. Johnson decided to go to Atlantic City and execute a plan that would go down in history as a legendary move in the world of gambling.

The Man Who Cheated Three Casinos Without Hiding

When the casinos reached a point of desperation, Johnson simply seized the opportunity. At that time, he had the funds for large bets and a decade of gaming experience, yet there was absolutely no reputation as a persona non grata in gambling establishments. The reputation of a man from nowhere worked in his favor for the impending deception. As Tony Rodio from Tropicana expressed it at the time, Don looked like a "cheap guy." Over ten years of gambling, Johnson did not cultivate a taste for expensive things, status behavior, or a luxurious lifestyle. He didn't stand out. Johnson seemed as if he had been preparing for his method of play his entire life. For him, the game began in 2001, long before he set foot in a casino. Soon, he would clean out Tropicana for $6 million, Borgata for $5 million, and Caesars for $4 million.

In Atlantic City, all casinos knew who Don Johnson was. As is usually the case, they conducted their own investigation. They were aware of all the games Johnson had participated in before and that he was not afraid to wager large sums. The gambling houses simply underestimated Johnson, thinking that the gambler was not good enough to avoid him or discourage him from playing.

Things got more intense. By the end of 2010, the casinos themselves got in touch with Don Johnson. At that point, he hadn't played at Borgata for over a year. Don had been trying for years to crack the game of blackjack but couldn't hit it big. At one point, he took advantage of a "lifetime discount," but when he started winning, he basically lost the benefit of the discount. The basic idea of any discount is that you have to lose a certain amount before you can enjoy the discount. For example, if you had a lifetime discount of 20% on $500 000, you would have to lose all the money you earned in previous trips, plus an additional $500 000, before the discount kicks in.

When this happened to Don, he realized that the rules weren't in his favor. So, playing there wasn't worth his time anymore. He explained this over the phone to Borgata representatives when they tried to lure him back. Then, according to Don, the casino manager suggested a change. He proposed giving Don a discount not for a single visit but for a series of visits — from trip to trip. Intrigued, Don started negotiating. Soon after sealing the deal with Borgata, Caesars, and Tropicana, both eager to keep every player they could at that time, offered Don discounts on the same terms. If it weren't for this turn of events, Don wouldn't have been able to beat all three casinos one after another in just six months.

Can Don Johnson's Path Be Replicated?

Theoretically, Don's case should never have happened. Therefore, after the fact, many accused Johnson of colluding with the casinos to stir up publicity, inspiring gamblers from around the world to rush into casinos, inspired by Don's success. Johnson does not deny that there was a deal with a discount, but he does not respond to other accusations.

Casinos use computer models that calculate odds to the last penny so that they can devise conditions to attract high rollers without losing their advantage. How then did all three casinos ultimately hand over to Johnson what he calls a "huge advantage"?

"I just think someone miscalculated when counting them," Johnson later replied to interviewers. Whatever the "mathematical" approach of Don, the gambler did not miss in calculations.

At Tropicana, Don Johnson was open to gambling with a 20% discount even after initially losing $500 000. However, he had some specific conditions. He wanted the casino to change the game rules in a way that would reduce its advantage. Although he never revealed the exact changes, he hinted that they involved playing with a manually shuffled six-deck shoe, the ability to split and double down on up to four hands at once, and a "soft 17" rule, where he could take another card with a hand totaling six plus an ace.

After negotiations, Don and Tropicana reached an agreement. According to Don's calculations, he minimized the casino's advantage to only a quarter of a percent. This essentially meant he was playing on equal footing with the casino, having a 50/50 chance of winning. With the 20% discount factored in, he was only risking 80 cents for every dollar played. While he did have to put up $1 000 000 of his own money initially, Tropicana acknowledged that if Don had lost $500 000, he would have stopped playing and taken advantage of the 20% discount, owing the casino only $400 000.

Thrice-Defeated: Tropicana, Borgata, and Caesars

In a game with 50/50 odds, you risk almost the same as in a casino, but if luck is on your side and you start winning, there's little incentive to stop.

So, when Johnson surged ahead in his winning streaks, he decided that he could continue playing with the same success:

"So, my philosophy at that time was that I could afford to take an extra risk here because I'm fighting with their money, using their discount against themselves."

These were the headlines after Johnson's series of victories.

According to Johnson, Tropicana terminated the deal after he won a total of $5.8 million, Borgata conceded $5 million, and the Caesars dealer refused to fill the chip tray once his earnings exceeded $4 million.

Recalling the game at Caesars, Johnson said:

"I was ready to keep playing. I looked around and asked, 'Are you guys going to fill the tray? Guys, are you making bets?' And they just said, 'No, we're calling it quits.'"

Later, Don learned that someone at Caesars had called the manager, who was then in London, and told him that Don Johnson was ahead by four.

"Four hundred thousand?" the manager asked.

"No, 4 million."

So, Caesars folded. According to Johnson, when he insisted on continuing to play, the pit boss pointed from the high-roller pit to the main betting area, where the game was played under the casino's usual rules, saying that Johnson could only continue playing there. That's when Don realized the game was over, went upstairs to his room, and fell asleep.

At Tropicana, Don Johnson wagered $100 000 per hand and earned $5.8 million in just 12 hours. He also admits that he vaguely remembers all three games — only how calm he was and that he wasn't paying attention to the time.

Three winning streaks made Johnson one of the most famous players in the world. He was stunned when his achievement made headlines on the front page of the Atlantic City press. Donald Wittkowski, a newspaper reporter, learned about this story when the casinos presented their monthly revenue reports.

After Don's initial win, Tropicana handled the situation gracefully: they warmly embraced Johnson in public and even invited him to host another tournament. However, the club's management had no intention of offering him the same conditions again. Despite this, according to Johnson, even without a 20% discount, he managed to win another $2 million from Tropicana in October.

Where is Don Now and How is He Living?

According to Tony Rodio, a representative of Borgata, most casinos in Atlantic City currently do not want to deal with Don Johnson. Although Tropicana doesn't mind continuing to play with him on their terms: with strict betting limits, care for Johnson's account, and accommodations while he stays with them. Tropicana's management acknowledges that Don Johnson is on an entirely different level of thinking, and playing against him is disadvantageous to any casino.

Don himself says that his life has not changed much after his wins. He didn't buy anything special for himself and still lives in the same house in Bensalem. But sometimes, he hangs out with celebrities like Jon Bon Jovi and Charlie Sheen. He entertains himself by spraying visitors to London clubs with the world's most expensive champagne. Once, he threw a party for Pamela Anderson in Las Vegas for her birthday. He enjoys his fame in gambling circles and is accustomed to flying around the world on private planes. Every gambler wants to play against the most famous blackjack player.

Don remains on casino blacklists worldwide. He is allowed into some gambling houses, but now all casinos take great care to ensure that the odds are not in Johnson's favor.

By and large, Don has laid low. He appears less frequently in social circles but continues to work in his company, Heritage. According to People AI, Don earned approximately $16.5 million in 2023.

Conclusion

Before the story of his major win, Don Johnson was an unknown figure, and until then, he was never considered a professional gambler. By his own admission, Don never played by the rules or relied on other complex blackjack systems that other players depended on. Johnson's success was aided by his own modernized probability counting system and a good plan, as well as a stroke of luck. Don has no intention of revealing the secret of his system, so it's unlikely that anyone can replicate it unless they develop a similar method.

After his big win, Don lives a luxurious but relatively quiet life. He has been seen at parties only a couple of times. He remains a simple guy, unaccustomed to luxury, so perhaps Don is simply living his dream and content with what he has.

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