Can You Negotiate for a Blackjack Loss Rebate Like Don Johnson?

Many advantage gamblers have won big with blackjack over the years. In fact, some players have even won millions.

Perhaps no blackjack player, though, has earned as many profits as Don Johnson. He collected over $15 million from Atlantic City casinos in the early 2010s.

What was the secret to Johnson’s success? Card counting? Shuffle tracking? The answer is no.

Johnson made his money through an unconventional method of negotiating for a loss rebate that, unbeknownst to the casino, secured his long-term profits.

Can you accomplish big profits through the same method? Find out below as I cover more on Johnson’s story and strategy.

Who Is Don Johnson the Blackjack Player?

Don Johnson bears the namesake of the famed Miami Vice and Nash Bridges actor. The two are occasionally confused.

In fact, I recently read an article on celebrity blackjack players that mistakenly claimed the actor won $15 million. The two are definitely not the same person, though.

Don Johnson the blackjack player was born in Salem, Oregon, in 1962. He grew up riding horses and racing them competitively. Johnson grew too tall to fulfill his dream of becoming a jockey, but he did remain close to the industry as a racetrack manager. At age 30, he started managing Philadelphia Park (now Parx Casino).

Johnson launched a Wyoming based software companied called Heritage Development. The latter develops computer-based software programs that help horse racing gamblers. On the side, Johnson played blackjack and other casino games recreationally. He kept his stakes low at $25 per hand and used basic strategy.

Over the years, he increased his blackjack bets as his wealth grew. But he wasn’t a notable high roller until later years.

Atlantic City Presents an Opportunity

Don Johnson is no dummy when it comes to real money gambling. He gained a solid understanding of casino games and the odds while managing Philadelphia Parx. He also knew math quite well based on his work with horse racing software.

In 2010, Johnson began receiving offers from Atlantic City to play blackjack. The East Coast gambling mecca was desperate for players on the tail end of an American recession.

He sensed the desperation and called casinos with an offer to play for as much as $100,000 per hand.

“There’s a time when Atlantic City was desperate for business, and I think they were overpitching some of the games,” said Johnson.

These casinos were willing to offer Johnson exorbitant comps to retain his gambling action. All Johnson wanted, though, was better rules and to lower the house edge.

Loss Rebate and Other Favorable Rules

The Borgata, Caesars, and Tropicana were willing to accept Johnson’s play and requests. They each researched him and figured that he was a mere whale who used basic strategy.

With their fears about Johnson being a card counter subsided, casinos figured they could make a solid profit off him. So, they agreed to his demands for the following rules:

• Six decks
• 3:2 natural blackjack payouts
• Split up to four hands
• Dealer stands on a soft 17
• Double down on any two cards

These rules lower the house edge to 0.263%, which is far better than what the average player faces. However, he still didn’t have the advantage yet.

He also asked for the following conditions:

• 20% loss rebate that kicked in at $500,000+ losses
• Loss rebate resets after every session
• No minimum play requirement

The casinos requested that Johnson bring at least $1 million to buy into the game. But given that he could leave at any time, he never needed to worry about losing $1 million.

Furthermore, Johnson could quit after $500k in losses and only end up paying $400k due to the 20% loss rebate. The rebate gave him around a 0.25% edge over casinos.

Lastly, Johnson received a free bet whenever the dealer made a mistake. Assuming he was betting $100k per hand, then he got a massive amount of free play for dealer blunders.

“You need to be better than the dealer,” Johnson said regarding the free bets. “There aren’t enough players that come in that they’re going to deal $100,000 a hand—they’re nervous.”

As if the croupiers didn’t have enough facing them, Johnson also brought in porn stars posing as girlfriends. His goal was to turn the games into a party and cause even more distractions.

“I’ve had all kinds of distractions for dealers,” he explained. “I’ve had porn stars play with me during the AVN Awards in Las Vegas. I’ve had five, six, seven, eight different girls that would pose as a girlfriend. There’s always a circus going on.”

The Winnings Roll In for Johnson

Don Johnson’s plan went off without a hitch. He decimated every Atlantic City casino that he played at during an incredible 2010 and ‘11 run.

He started off by booking a $220,000 win at the Trump Taj Mahal (now Hard Rock International). Johnson took these winnings to Caesars Atlantic City.

The latter not only accepted the same special rules but also offered $50,000 in free bets too. Johnson, accompanied by beautiful women, won $4.2 million from Caesars. His best was yet to come as he traveled to the Borgata. Here, the “Beast of Blackjack” won $5 million over the course of three sessions.

Next up was the Tropicana. Within just a 12-hour span, he collected $5.8 million in winnings. Johnson was so on fire that he made a collective $1.2 million on three consecutive hands. When it was all said and done, he’d earned $15 million total from the casinos. He also gained fame and recognition for the greatest blackjack run of all time.

The casinos, meanwhile, bore the consequences of taking on what they felt was going to be an easy win. The Tropicana even fired their former president and CEO, Mark Giannantonio, for not cutting off Johnson’s action earlier.

Why Did Casinos Give Johnson This Loss Rebate?

The casinos obviously didn’t benefit from being so generous to Johnson. Why then did they offer him such favorable rules?

As Don mentioned earlier, Atlantic City was in desperation mode. The Great American Recession hit them harder than Las Vegas. At the time, AC featured 12 casinos that were battling with increased out-of-state competition. The recession was the breaking point. They began an aggressive recruiting pitch to bring in high rollers who’d previously visited the city. Johnson happened to be one of these players.

He was also the only one who had a real plan for how to take advantage of these desperate casinos. The Parx Casino manager used his insider knowledge and math expertise to negotiate for the best conditions possible.

The casinos, meanwhile, underestimated whom they were dealing with. Based on Johnson’s profile, their research indicated that they were negotiating with a total amateur. Johnson turned out to be far more than this.

Can You Ask for a Loss Rebate?

You can see the power of a loss rebate. It’s especially effective when combined with other quality rules that lower the house advantage.

You’ll obviously benefit from such a rebate. The truth is, you can actually get such a deal at many online and land-based casinos.

Most gambling establishments package such deals as “cashback.” You receive a percentage of your losses accumulated over a certain time period.

Here’s an example:

• You qualify for 10% cashback over a week’s span.
• You lose $1,000.
• You receive $100 back.

At online casinos, the cashback often comes as a bonus with terms and conditions attached. You can only withdraw the money after you’ve met terms and conditions.

Nevertheless, cashback can be worthwhile in any form. You can recoup some of your losses following a bad session. Of course, casinos most likely won’t let you enjoy the same 20% rebate that Johnson did, at least not without serious strings attached.

Gambling establishments across America still remember what Johnson did to Atlantic City. Therefore, they’re much more careful with their math and research nowadays, too.

What Can You Negotiate Regarding Casino Blackjack?

You may not be able to ask for rules leading to a 0.23% house edge along with 20% cashback any longer. However, you can still work with land-based casinos to get quality perks.

Casinos are always willing to accommodate high-volume players within reason. They assign hosts to handle the needs of noted VIP players.

You don’t have to play for $25,000 or $100,000 per hand just to be hosted. You can still draw attention when you’re betting $50 per hand or playing a high volume at $25. In these cases, you can discuss comp packages with the host. They’ll supply you with what you’re looking for based on how much play you give the casino.

You can also ask for special rules just like Johnson. The catch, though, is that the casino will still make sure that they hold at least a 0.3% house edge.

Conclusion

Don Johnson hit Atlantic City at a point when the town was struggling mightily. Combining these conditions with his high roller status, Johnson was able to get highly favorable rules and a big loss rebate.

This same situation is unlikely to happen again within the foreseeable future. Casinos won’t let themselves get burned for another $15 million blackjack loss again. You may not be able to get the kind of perks that Johnson did. However, you can still negotiate for some great VIP perks or even better rules.