Francis M. Gagliardi - Page 33




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         Gagliardi played reportedly had less than 90 percent RTP on their            
         slot machines and the amount of RTP from the casinos varied, and             
         that the maximum RTP on the “class 2” slot machines Mr. Gagliardi            
         played was 90 percent.  Furthermore, on the basis of Mr. Nicely’s            
         report and testimony, we find that it is more likely that Mr.                
         Gagliardi’s expected wins or losses were accurately reflected by             
         either the 83 percent or 70 percent RTP figures Mr. Nicely used              
         rather than the 90 percent RTP calculation.                                  
              Respondent attempted to discredit Mr. Nicely by claiming                
         that Mr. Nicely incorrectly calculated that Mr. Gagliardi played             
         slot machines at a frequency of six times per minute, which was              
         more often than Mr. Gagliardi actually played.  Mr. Gagliardi                
         played the slot machines at the casinos at a frequency of at                 
         least four to five times per minute during the years in issue.               
         In his expert report, Mr. Nicely used a figure of 250 bets per               
         hour for his calculations.  This amounts to approximately 4.17               
         bets per minute (250 divided by 60).  Accordingly, we find that              
         Mr. Nicely used a conservative, and reasonable, number of bets in            
         his calculations to determine that there was only an                         
         infinitesimal chance that Mr. Gagliardi won money (i.e., net)                
         gambling on slot machines during the years in issue.                         
              Furthermore, Mr. Nicely testified that regardless of his                
         calculations and methodology for determining Mr. Gagliardi’s                 
         gambling losses, if Mr. Gagliardi spent all of his slot machine              







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Last modified: March 27, 2008