How can this not be considered cheating?
They've manipulated a situation so that they would be paid multiple times on a single betting transaction and at greater than the advertised odds. How is this not in violation of the posted rules?
While I agree this is not a legitimate hacking case and I don't see how it should be a wire fraud case, it should certainly be prosecuted. To me it would be the same as playing a $100 hand of blackjack, winning and getting paid, somehow distracting a not-so-bright dealer so that you can collect your win and pad the bet with a stack of black chips and getting paid again on that.
The only difference between cheating a machine and cheating a human dealer is that a lot of people apparently feel they have a better chance of getting away with it on a machine. Then when they do get caught they feel like they should just be able to play stupid and get a slap on the wrist.
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