Terrance Watanabe (pictured) was a gambling whale who lost $127m in a year in 2007 at the Caesars Palace and the Rio casinos.

Making history

The gambling world is full of mysterious, terrifying, and wonderful stories, from bizarre bad beats to hair-raising heists, murders, and even ghosts. But when it comes to the biggest gambling losses, the story of a Nebraska businessman – who lost nearly $127m in a yearlong gambling binge – springs to mind.

Terrance Watanabe is said to have bet more than $827m and lost $127m at Caesars Palace and the Rio All-Suite Hotel and Casino in 2007, believed to be the biggest losing streak in Las Vegas history. The gambler has since claimed that, for much of that time, he was intoxicated by alcohol and painkillers. His lawyer, Pierce O‘Donnell, said:

He was so addicted and so out of it, he didn’t really realize what was going on.”

Following his gambling spree, Watanabe was charged with four felony counts for refusing to pay the final $14m. He also faced 28 years in prison if he was convicted.

$200,000 on one hand

Born in 1957, American businessman Watanabe was known as a high-roller in Las Vegas.

Terrance inherited Oriental Trading Company, a party and arts and crafts business founded by his father, Harry Watanabe. However, in 2000, he sold his entire stake in the company to Brentwood Associates, an LA-based equity firm, and resigned as CEO and President.

Following the sale of Oriental Trading Company, Watanabe became known for gambling lavishly at hotels. Gambling for hours on end – often days at a time – he was known to bet as much as $200,000 on a single hand of blackjack.

Betting more than $827m at the Caesars Palace and the Rio casinos in 2007, Watanabe is credited with providing Harrah’s Entertainment Inc., the parent company of both casinos, with about 5.6% of its total gambling revenue in Las Vegas that year.

Watanabe files a suit

Watanabe’s losses grew so much that he filed a lawsuit in Clark County District Court seeking $20m in damages. Watanabe claimed that Harrah’s was partly responsible for his gambling debts as the casino provided him with free drinks and painkillers to keep him gambling. He also alleged that he was given free credit even when he couldn‘t pay his gambling debts.

drinking two to three bottles of vodka a day”

According to O‘Donnell, the gambling whale was “drinking two to three bottles of vodka a day,” all of which were supplied by Harrah‘s employees. He’s said to have had his own personal bartender, to whom he gave as much as $20,000 in tips. O‘Donnell added: “They gave him highly addictive pills, eight or ten a day. Sometimes in a candy box.”

Watanabe also contacted the Nevada Gaming Commission, which opened their own investigation into the matter.

Out-of-court settlement

Harrah argued that Watanabe’s lawsuit and letter to the commission were steps designed to get them to drop its charges against him. According to Harrah, Watanabe was “a criminal defendant who faces imprisonment for theft and writing bad checks.”

Despite tackling his gambling addiction at the time, Watanabe managed to pay most of his debt off, O‘Donnell said. He eventually went to rehab after his sister intervened. “We‘ll let the good people of Las Vegas decide whether he has a criminal intent to defraud,” O‘Donnell said. “He did not.”

The case was eventually settled out of court with the terms remaining confidential.

In 2022, Foundation Media Partners secured the rights to a book, film, and documentary on the life of Terrance Watanabe. When they come out, it will be the first time the legendary whale speaks out on his gambling experience since the lawsuit.

For more Against All Odds stories, try out the tale of the gambling pensioner who kidnapped his granddaughter, or the story of the gang who stole $7m from casinos without them noticing.