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That's why he started his own slot-machine repair company in Riga, Latvia. In , slots generated 36 percent of Nevada's gaming revenue; by , with digital slots on the rise, that figure was up to 44 percent. IGT scours the nation's graduate mathematics programs in search of talent who would rather develop slots software than devise Wall Street trading algorithms. However innocent his initial intentions, Cabrera quickly saw the business potential in this breakthrough. Nine years later, after becoming obsessed with airplanes as a teenager, Cabrera won a scholarship to Riga Civil Aviation Engineers Institute, home to one of the Soviet Union's finest aeronautical-engineering programs. He figured out a way to make the games work with just four or five memory cards each, instead of the 16 cards IGT normally uses. Telnaes' solution to this conundrum was US Patent Number 4,,, awarded in His invention called for slot machine results to be determined not by the spinning of reels but by a random-number generator. In the early s, Redd was the independent Nevada distributor for the Bally Manufacturing Corporation of Chicago, which made the popular Money Honey slot machine. A mugshot of Rodolofo Rodriguez Cabrera, whose slot machine counterfeiting ring quickly became a global operation. When his guests arrived that day, Cabrera beckoned them through a service door and up a flight of stairs. Cabrera realized he could make a tidy profit by buying used slots, updating them with fresh games, then reselling them to budget-conscious casinos in Europe. Koerner Though he wasn't much of a gambler, Cabrera was drawn to these devices. All the necessary parts were readily available on the secondhand market: IGT's stock cabinets and proprietary circuit boards, as well as generic components like LCD monitors and power supplies. Scammers became adept at techniques like affixing coins to fishing lines or covertly prying open service doors to monkey with the reels. But the more reels a machine had, the more players were reminded of the fact that their quest for riches would likely end in futility; no one wanted to try their luck on a machine with dozens of reels or, alternatively, hundreds and hundreds of symbols on enormous reels. Slots manufacturers have recently come to view game consoles as a serious threat to their business; they fear that younger gamblers in particular might prefer to stay home and play L. Surely no one would notice if he made a few bucks on the side by hacking IGT's tech. Once, after winning a student essay contest in , he was given a personal audience with Fidel Castro. Just as Redd had foreseen, IGT's video machines were a boon to casinos. For starters, the devices must pay out as stipulated on their spec sheets; if a slot is designed to return The machine must also prove capable of standing up to the ravages of power outages, 20,volt shocks, and numerous spilled daiquiris. The trio entered a spacious workshop where tiny plumes of white smoke hung in the air—the product of multiple soldering irons making connections simultaneously. Demand for these new machines was so strong that Cabrera had to go on a hiring spree; FE Electronic's staff ballooned to 20 employees; most spent their days soldering jumper wires onto IGT's proprietary circuit boards. He wasn't happy at his job, and he yearned to strike out on his own. The systems that determine how and when these bonuses kick in have become the subject of fierce patent wars between IGT and its competitors, particularly Bally; the two companies have been locked in litigation for much of the past decade. If he was given a used Pharaoh's Gold machine, for example, he could convert it to a Cleopatra II by swapping in freshly programmed memory cards. In the midst of Redd's buying spree, Bally offered to purchase his distributorship. Armed with detailed intelligence regarding gamblers' behavior, IGT's designers now tailor each new machine to appeal to a specific type of player. Slots took over the prime casino real estate previously reserved for blackjack and roulette; three-quarters of gaming-floor acreage in Las Vegas is now inhabited by slots. In he accepted a gig with a company called Altea, servicing the boxy videogame consoles found atop Eastern European bars, where they offer drunks the chance to waste a few coins answering trivia questions or playing Tetris. The problem with slot machines, as Telnaes saw it, was that their jackpots were limited by the number of reels they could use. All he wanted was to earn a decent living doing what he loves most: tinkering with electronics. Some games, he explains, are based on algorithms that produce frequent but small payouts, ensuring that risk-averse players are able to play for long stretches before losing their bankrolls. Just to make a little cash while playing with circuit boards. While working toward his degree, he fell in love with an older Latvian woman, and though he was expected to return to Cuba after graduation to serve Castro's regime, Cabrera decided to stay in Riga and build a new life designing and working on aircraft. But slots didn't truly become America's favorite casino pastime until a Norwegian mathematician named Inge Telnaes came up with the most brilliant gambling innovation since the point spread. Soon Cabrera was doing a brisk trade selling his refurbished machines to customers throughout Europe. The patent made possible the development of slot machines that could offer extremely long odds—and thus enticingly massive jackpots—while still appearing to have just a few tumblers. Such machines would require less maintenance and be less susceptible to cheating than their analog predecessors. There was a time when casinos only grudgingly tolerated slot machines. Cabrera took pride in the fact that he was improving the technology of a company he held in the highest regard. Instead of fixing jet engines, Cabrera was forced to make money repairing radios and telephones. But a salesman named William "Si" Redd had the foresight to realize that digital technology would eventually transform slots into a revenue powerhouse. The reels on such a machine would display only a visual representation of the generator's results, lining up when a winning number spit forth or far more frequently settling into a losing mishmash of symbols. Mantilla suggested that Cabrera could assist with that plan by making him FE Electronic's exclusive US distributor, in exchange for 50 percent of all sales.{/INSERTKEYS}{/PARAGRAPH} Since slot software is so difficult and costly to perfect, companies such as IGT jealously guard their programs as trade secrets of the highest order. He knew that the most-devoted slots players care a great deal about novelty, which is why IGT and its competitors roll out hundreds of new games every year. Cabrera readily agreed. In early , shortly after returning from a gaming expo in London, Cabrera received a phone call from an American named Henry Mantilla. Casinos must periodically refresh their floors with updated machines or risk losing loyal customers to competitors who understand that IGT's The Hangover is now a much more desirable game than IGT's Dick Clark's Bloopers. These can be customized to an individual player's preferences, based on information stored on their casino loyalty cards, which are inserted into the machine during play. Government overseers rely on several testing facilities—the largest of which are run by the Nevada Gaming Control Board, the other by Gaming Laboratories International of Lakewood, New Jersey—to verify that new machines perform exactly as their manufacturers promise. {PARAGRAPH}{INSERTKEYS}Rodolfo Rodriguez Cabrera didn't set out to mastermind a global counterfeiting ring. The game program could then be flashed onto new cards with a plug-and-play programming device that Cabrera had purchased from a Russian merchant, no questions asked. Like any good hacker, Cabrera decided to express his admiration for IGT's technology by trying to beat it. Noire than trek to a casino. The newly independent country had no aerospace industry of its own, and thus no aerospace jobs. It was a huge moment for Cabrera, a chance to expand his booming business to a whole new hemisphere. He had heard through the industry grapevine that Cabrera had a special knack for fixing damaged IGT circuit boards. Like all slots, IGT's machines are powered by proprietary circuit boards equipped with rows of memory cards; those cards, in turn, contain each game's unique software. Creating those varied experiences, while still ensuring that the house always wins a predictable amount over the long run, requires the expertise of professional mathematicians. So in , Cabrera used his modest savings to found his own repair company, FE Electronic. Using blueprints meant to assist casino service personnel, he figured out a way to solder a half-dozen jumper wires between the memory cards and the motherboards, completing circuits that circumvented the machine's security. High-volatility games, by contrast, offer large jackpots but long odds of winning and are thus designed to attract gamblers who want a quick shot at a big score. One of his acquisitions, Raven Electronics of Reno, was developing a video blackjack machine; another, Nutting Associates of Mountain View, California, had created Computer Space , a primitive forerunner of Asteroids. But soon after Cabrera completed his degree, Latvia broke free from the dying Soviet Union. Four employees sat hunched over a workbench, tweaking electronics; others had their heads buried in slot-machine cabinets, installing LCD monitors and button sets. The deeper he plunged, the more he came to regard slot machines as his true professional calling. The machines' mechanical gears required constant maintenance, and the games were magnets for cheats. Among digital devices, slots are unique in the amount of regulation they must endure. IGT wisely purchased Telnaes' patent in , thereby guaranteeing itself a steady stream of royalties as its competitors adopted random-number generators, too. The big challenge for Cabrera would be to develop an extensive library of IGT games; pirating code was not his forte. But this was Latvia, he figured, where capitalism is wild and woolly. Might the company study how Cabrera performed his craft? A company like IGT simply won't stand for anyone stealing its lifeblood. When Cabrera added up all the expenses, including printing glass signage to make the games look authentic and even faking IGT serial number plates, the cost was still considerably less than buying a genuine used machine from Russia. He spent hours dissecting slot electronics to learn everything he could about how they worked. Russia was then gearing up to outlaw most casinos, which meant cheap used machines were flooding into the Baltics. Frost snapped photographs of the counterfeiting equipment as the Spanish-speaking Mantilla translated Cabrera's spiel. As FE Electronic began to thrive, Cabrera came up with a clever way of fattening his profit margins even more: Instead of buying and revamping used machines, he would simply manufacture his own. In the room stood 40 finished machines, each indistinguishable from a genuine IGT product. Redd agreed with one condition: that he be allowed to retain the video-related patents he had acquired. When the dictator asked the year-old what he wanted to be when he grew up, Cabrera confidently replied, "An architectural engineer. A former project manager at the Palms in Las Vegas, Mantilla had recently moved to Cape Coral, Florida, to join Aqua Gaming, a company that sells refurbished slot machines worldwide. This gave him the ability to load any IGT game he wanted onto the boards. By , slot machines accounted for a full two-thirds of Las Vegas' gaming revenue, a percentage that has remained fairly constant ever since. Cabrera was particularly fond of the slots made by Nevada-based International Game Technology, which he considered by far the industry's most advanced. Cabrera, meanwhile, continued to hone his mastery of the machines. Cabrera ushered Frost and Mantilla into a side room, where he popped open a briefcase. So to give players the illusion that they're doing something more interactive than clicking on a random-number generator, many slots now offer periodic bonuses like free spins or minigames. To prevent piracy, the boards are designed to reject memory cards unless they're accompanied by a security chip programmed with an uncrackable authorization code. He boasted to the Americans that he could duplicate any IGT game on the market. Redd planned on using these startups' know-how to help create video slot machines, which would replace fickle gears with reliable circuit boards. In the early years of Las Vegas, slots were relegated to the perimeter of casino floors, where they were expected to gobble up coins from women waiting on their blackjack-playing husbands. Inside was the burner he used to load IGT software onto new memory cards. Flush with cash from sales of that game and others like Big Bertha, Redd started acquiring tiny startups that were pioneering videogames, which at the time were considered little more than engineering novelties. Since players expected each reel to have no more than 10 to 15 symbols, a machine needed many reels to make the odds long enough to justify a huge payout when all the cherries or bells settled into a row.