Chaos Scientist Finds Hidden Financial Risks That Regulators Miss

Oxford University professor Doyne Farmer traces his research exposing risks in the financial system to the roulette wheels of Las Vegas.

In the 1970s, Farmer and two fellow physics students at the University of California at Santa Cruz built a computer small enough to hide in a shoe that helped them predict roughly where roulette balls would land. At casinos in Vegas, they communicated with toe-controlled switches and transmitters, also in their shoes, about what bets to make. The gadget was legal, but they feared their winnings—about a 20% return on their wagers—would lead to trouble. So they quit after a couple of years.