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Mr. Nicely used the same analyses and techniques in this case.
These analyses and techniques are used by all major slot machine
manufacturers.
Mr. Nicely has no published articles because in his industry
anything worthy of publication is a trade secret. There is a
code of silence with respect to sharing information--publishing
would amount to giving secrets away to the competition. For
example, Mr. Nicely has solved a very difficult math problem
associated with a process called “gambler’s ruin”. His
associates do not have this analytical technique at their
disposal, so they have to use simulators. Mr. Nicely’s
analytical solution is very powerful, and he would never publish
it because it would be “spilling the beans” to his competitors.
Mr. Nicely is required to gamble on slot machines for market
research. It is very important for him to gamble for “real”
money so that he can feel the gambler’s emotions. Accordingly,
he gambles with his own money and is not reimbursed for his
losses, which is industry policy, so that he feels what the
machine is like. In every year that he has gambled on slot
machines as part of his job, he has lost money (net).
Mr. Nicely credibly explained the simple five-step purely
mechanical formula he used to calculate the likelihood and extent
of Mr. Gagliardi’s gambling losses at slot machines during the
years in issue. Mr. Nicely had no discretion when calculating
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Last modified: March 27, 2008