Is Cheating in Gambling Illegal?

Gambling has always existed in the space between thrill and risk. From the early days of card tables and race tracks to today’s world of virtual casinos, players have sought ways to gain an edge. When it comes to entertainment, many players prefer to enjoy their favorite casino games online. Not only does this mean that they can play from the comfort of their own homes, but it also means they can enjoy gaming on the go. But, just like physical casinos, online casinos are no strangers to people trying to find ways to cheat the system. 

Cheating might sound like a problem confined to backroom poker games, but it remains a serious issue even in modern, regulated environments. From card marking and machine tampering to exploiting software bugs online, the methods have changed, but the intent is the same.

What Counts as Cheating in Gambling?

Cheating in gambling refers to any action that gives a player an unfair advantage by manipulating the outcome of a game or deceiving others involved. It can take many forms, from the obvious to the subtle. Common examples include marking cards, colluding with other players, tampering with machines, or exploiting weaknesses and bugs in online gaming software.

Cheating is not limited to physical games; it also occurs in digital and virtual gambling environments. Online, players might attempt to manipulate software, use bots to gain an advantage, or exploit glitches in games. Even seemingly minor actions, such as sharing confidential information or collaborating with insiders, can qualify as cheating if they undermine the fairness of the game.

The key factor in determining cheating is interference with the integrity of play. If a player’s actions alter the natural chance, process, or fairness of the game to benefit themselves at the expense of others, it is generally considered cheating. The focus is on whether the game’s outcome was manipulated or influenced unfairly, rather than the specific location or legal framework.

Cheating Laws Around the World

Whether cheating is actually illegal or not depends on the country in which you are gambling.

Australia

Australia has stringent gambling regulations focused on fair games as well as player conduct. National online gaming regulation is done under the Interactive Gambling Act 2001, and there is a separate gambling law in each state and territory.

Cheating at gambling can be prosecuted under general fraud legislation or specific gaming offenses. Interfering with a machine, colluding with other players, or software interference are all criminal offenses. “Courtsiding”, where spectators relay live information from sporting events to be able to bet more informatively, has even been prosecuted by states.

The theme in Australia is patent: gambling per se is legal and properly regulated, but anything which undermines the equality of play is not.

UK

Offending in gambling is a serious issue in the UK, though prosecutions are comparatively rare. Section 42 of the Gambling Act 2005 is the main legislation. Defrauding can lead to two years in prison, an unlimited fine, or both on conviction.

The Act proceeds to define cheating as encompassing not only deception but also interference, and that it applies to virtual and actual games. This serves the purpose of making sure that the same principles that govern the case of physical premises are extended to online casinos.

One of the most well-known cases that has affected how cheating is interpreted in law is Ivey v Genting Casinos (2017). Competitive poker player Phil Ivey used a technique called “edge sorting” to notice patterns on casino playing cards when he was playing baccarat. Even though Ivey claimed that he had not cheated and had merely used skill and perception, the UK Supreme Court held otherwise. The court ruled that his procedure constituted cheating because it affected the integrity of the game, regardless of whether or not he believed he was being truthful.

Although the Gambling Commission can pursue and prosecute such crimes, few cases ever reach court. Most disputes about alleged cheating are resolved by way of regulatory or civil remedy, e.g., exclusion from play or annulment of winnings.

United States

In the United States, gambling is controlled state by state, but cheating is almost always a criminal act. In the country’s gaming capital, Nevada, cheating is whatever action alters the elements of chance or controls the outcome of a game. Cheaters can be indicted with felonies and jailed.

Other states also tread the same path. California and New Jersey criminalize cheating as fraud or theft and face severe penalties or jail terms. Casinos, too, have their own internal enforcers and will always ban suspected cheaters irrespective of charges being filed or not.

Other Countries

In the majority of other countries, from Canada to Singapore, cheating at gambling is considered fraud or corruption. The criminals are either fined or incarcerated, depending on the severity of the offense. Strict audit and security procedures are observed by licensed casinos, and those who operate run the risk of having their license taken away if they cannot keep their business on the level.

Examples of Cheating

Throughout history, gambling has seen constant attempts to outsmart the system. Some were clever, the rest illegal.

Card marking remains among the oldest and most identifiable forms of cheating. Players use invisible ink, small scratches, or minute bends on cards so they can identify them afterward. Similarly, using devices to predict roulette numbers or manipulate slot machines is a flagrant violation of gaming laws.

Collusion is another common tactic, and a common one used in poker. Collusion involves two or more players secretly talking to one another or betting together to try to deceive other players, both against casino rules and, in most jurisdictions, the law.

Online gambling has new methods, such as playing in an automatic way through bots, exploiting software vulnerabilities, or “hacking” into casino databases. These gambles can not only be against gambling law but computer abuse and fraud laws as well.

Conversely, techniques like card counting in blackjack are typically outside the line of what cheating is. Although casinos don’t like it and may ban those who employ it, card counting involves observation and memory more than interference or concealment.

Why Some Cheating Does Not Get Punished

Despite the fact that there are clear laws against cheating, very few convictions are made. There are several reasons why.

First, it is difficult to establish cheating. The investigators have to prove not only that there was an irregularity but also that it was the result of deliberate intervention. Such evidence can be difficult to obtain, especially in complex digital systems.

Second, casinos generally prefer to handle the situation internally. A suspected cheater will lose the winnings, membership, or have access barred rather than going through lengthy legal proceedings.

Third, enforcement agencies like to go for mass or organized cheating rather than isolated cases. The authorities will be more likely to act when professional or insider groups manipulate results for huge payouts.

Finally, some legislation has not fully kept up with technological development. Internet gambling remains on the increase, and new methods of manipulation are available that are legally in gray areas pending legislative change.

Grey Areas and Defenses

Not every attempt at gaining an edge is illegal cheating. Some tactics fall in a grey area.

For instance, the use of publicly available patterns or mathematical models to one’s advantage is typically legitimate advantage play. As long as they’re not interfering with the workings of the game or deceiving other players, what they’re doing shouldn’t be criminal.

But if the player gains inside information, manipulates staff, or manipulates results with software, then the situation changes. Even if they don’t confess to having done anything dishonest, judges may still find them guilty if what they did undermined the integrity of the game.

Intent matters too. Some gamblers will unknowingly break rules, especially on the net, where software or programs will execute actions without the consumer even realizing their illegality. Ignorance is rarely an absolute defense.

Match Fixing and Betting Corruption in Sport

Cheating in gambling is not only an issue with casino games. Match fixing and corruption in sport are severe crimes that erode public confidence.

Where players, officials, or insiders manipulate outcomes for financial gain, they will be punishable for fraud, bribery, or corruption. Sports organizations will typically work alongside gambling regulators in the surveillance of suspicious activity, using data analysis to pick up on unusual betting patterns.

In most countries, such as Australia and the UK, match fixing is a criminal offense. It is punishable by imprisonment and lifetime bans from professional sport. The objective is to maintain both competition fairness and integrity of related betting markets.

So, is Gambling Illegal?

Is gambling cheating illegal? The answer, in nearly all legal jurisdictions, is yes. By using marked cards, collusion, or electronic tampering, cheating ruins the randomness on which gambling depends. UK, United States, and Australian law, among others, expressly criminalize gambling cheating, often with penalties of imprisonment and large fines.‍