> At what point does playing smart become fraud?

when you use an active device that essentially guarantees you will win. Elsewhere in the thread someone quoted the Nevada regulations that explicitly state this. I'm sure each state has them now. Had they arrested these guys and didn't find an iPhone with custom software, or a confession that they were remitting their winnings back to Russia, they probably wouldn't be able to charge them with anything (but they could still kick them out of all casinos).