Edward Thorp is considered the original pioneer to card counting in blackjack. While there were people who counted cards before Thorp, and many after him; it was Thorp who wrote the first book (titled “Beat the Dealer”) that proved one could beat the house by counting cards. Edward Thorp worked with numbers for a living, as he worked as a Math Professor, as well as a hedge fund manager in addition to being an avid blackjack player. He received his Doctorate from U.C.L.A. and worked at M.I.T.

Thorp’s understanding of Mathematics gave him a significant edge in blackjack game theory, as he understood that blackjack is a game of numbers. He used one of the earliest computers, the IBM 704 to work out his theories on card counting and to assist him in his calculations of probabilities associated with his card counting theory. While his blackjack theories were hammered out on the computer, he also tested his system at live blackjack tables in Nevada.

His first live blackjack test took place in casinos throughout Lake Tahoe and Reno. Starting with a $10K bankroll, he turned a profit of $11K in his weekend of testing.

While blackjack is the casino game where Thorp made a name for himself, he also took part in game theory exercises at the Roulette table. In 1960, Thorp and Claude Shannon built a wearable computer that was designed to assist in predicting what number the ball would land on in Roulette. Today, computers of this sort are illegal in casinos. Thorp also put together a team of players that constantly won playing Baccarat.

Casino gambling is not the only area in which Thorp revolutionized. He used his keen insight on probability to head up a Hedge Fund that specialized in taking advantage of anomalies in the pricing of various stocks. The Princeton/Newport Partners Hedge Fund was the first hedge fund that Thorp directed. He remains active in the financial markets today as the head of Edward O. Thorp & Associates, which is an investment company that is located in Newport Beach, CA.

As one of the original pioneers of blackjack and casino game theory, Edward Thorp revolutionized the way people view the game of blackjack. By proving and detailing methods of card counting, Thorp was able to turn a sizable fortune by counting cards in blackjack games. His understanding of game theory and probability has helped him in both the casino and the financial markets.