Return to Transcripts main page

Anderson Cooper 360 Degrees

White House East Wing Gone, Cost of Trump Ballroom Now $300M; Trump Pardons Convicted Crypto Billionaire; Sources: Prosecutors Hesitant To Charge Sen. Adam Schiff; New Images: White House East Wing Completely Demolished; NBA Player, Coach And Others Charged In FBI Gambling Probe; Microsoft AI CEO: We're Making An AI That You Can Trust Your Kids To Use; King Charles And Queen Camilla Meet Pope Leo At Vatican In Historic Visit With Prayer Service. Aired 8-9p ET

Aired October 23, 2025 - 20:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ERIN BURNETT, CNN HOST: Okay, you just told me something I don't know, so you're done. But now I know you have something else that I don't know about the mafia.

HARRY ENTEN, CNN CHIEF DATA ANALYST: Yes, I'll tell you something else that you don't know, Erin Burnett, is that the mafia -- all of a sudden, we're talking about the mafia. I haven't been talking about the mafia for a long time. Why is that? Because the number of members and affiliates in the mafia is way, way down from where it used to be. The latest number is only about 3,000 compared to the late 1980s, when it was 17,000.

BURNETT: Wow, that's a huge drop, like, we'll see how many are left after this roundup that's going down.

ENTEN: Huge drop -- we will find out.

BURNETT: Bye, Harry. Thank you so much and thanks to all of you. Anderson starts now.

[20:00:38]

ANDERSON COOPER, CNN HOST, "ANDERSON COOPER: 360": Tonight on 360, crushing -- the East Wing of The White House and 123 years of American history, and embodied is now reduced to rubble, that's the cost of the ballroom and with it opportunities for donors to curry favor with the administration rises.

Also tonight, a new presidential pardon for a crypto billionaire whose company is alleged to have enabled Hamas and al-Qaeda to move money but also, more recently, a business owned by the President's family to make millions.

And later, the massive FBI gambling bust involving one current player, one NBA head coach and one former player for New York mafia crime families and the FBI says millions of dollars. It is quite a story.

Good evening. Thanks for joining us. This is what we witnessed throughout the day today. The ripping apart, tearing down destruction of the entire East Wing of The White House. Now, we would show you live pictures, but there's nothing to see. And it's not just because of the darkness, it's mostly rubble that's left. The last of the building came down earlier today, it was torn down. It just took about three days from start to finish to demolish a structure that first went up in 1902 under President Theodore Roosevelt and had been added to and refurbished several times over the last almost century and a quarter since.

These are photos taken earlier today from a different angle. The East Wing was home to America's First Ladies, Betty Ford, that's her at her desk. She once famously said, if the West Wing is the mind of the nation, then the East Wing is the heart. Well, it has been ripped out.

Tonight, looking at these new pictures of the building being torn down from a different angle, piece by piece, it is difficult not to feel a bit stunned. If you care about American history, that is. Even at an enormous distance, perhaps especially so the loss somehow hits harder.

These are pair of satellite images on the left. What it looked like before demolition began. The West and East Wings flanking the executive mansion, connected by a pair of symmetrical colonnades and the right hand image, shows what looks almost like some wartime bomb leveled the east wing. The President, though, says that despite prior suggestions to the contrary, the entire structure had to go.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R) PRESIDENT OF THE UNITED STATES OF AMERICA: It was a very small building, and rather than allowing that to hurt a very expensive, beautiful building that frankly they've been after for years --

(END VIDEO CLIP)

COOPER: Well, by now, the images of the gilded ballroom that will replace it are, well enough known, 90,000 square feet dwarfing the rest of The White House complex with capacity for nearly a thousand guests. Recently, though, some online critics have noticed a resemblance, the say to this the Grand Throne Room of the Winter Palace in Saint Petersburg, Russia, where the czars, their version of kings, once held court.

The new gilded ballrooms cost to build is rising from around $200 million to $300 million.

(BEGIN VIDEO CLIP)

REPORTER: Have you raised the full $300 million needed to fund your ballroom? And how much specifically are you donating to this construction?

TRUMP: Yes, actually we're -- $350 million. All donor money and money that we put up, we've raised, it's going to be -- it's going to cost right in the neighborhood of $300 million. It's been expanded and made absolutely -- it will be the most beautiful ballroom anywhere in the world, I think.

REPORTER: And how much specifically are you donating to it personally?

TRUMP: How much am I donating? I won't be able to tell you until I finish, but I'll donate whatever is needed. I'll tell you that.

(END VIDEO CLIP)

COOPER: We'll see, like many such pledges over the decades about footing the bill for everything from veterans charities down to Cuban sandwiches for his fans in Little Havana after his arraignment in Miami, as I said, it remains to be seen.

As for the President's claim that corporate donors are paying for the ballroom, the White House says the list includes Apple, Amazon, Microsoft, Meta and Google. Defense contractor Lockheed Martin and the cryptocurrency Winklevoss twins. Also, the broadcaster, Comcast. Among that group, it's hard to find one that doesn't already have business with the federal government or could benefit from decisions the administration makes or questions that the President himself may have to decide.

And now, instead of having 200 million ways of potentially currying favor, this price hike gives them another future donors 300 million ways. Because, as he's made clear, even before ever winning or taking office, this is something the President really, really wants, just ask him.

(BEGIN VIDEO CLIP)

TRUMP: I renovated Grand Central Terminal, I renovated Plaza Hotel. I will build you an incredible ballroom for The White House. I will spend over a hundred million, whatever it costs, and I'm going to build it free of charge, no charge, nothing.

Offered him a ballroom over a hundred million. I called David Axelrod, I said David, I see you have all the heads of state and all the biggest people from China, and you're in a crummy tent.

We don't have a ballroom at the White House. I offered, by the way, Jerry, years ago to build a ballroom at The White House free of charge.

And by the way, right there, you see all the trucks, they just started construction of the new ballroom for The White House.

I said, how long will it take me, sir? You can start tonight. You're the President of the United States, you can do anything you want.

We're building a ballroom.

You're going to see a ballroom, the likes of which I don't think will -- I don't think it will be topped.

[20:05:37]

We're doing a great job in The White House. As you know, the ballroom is under construction.

I'm going to get a ballroom built, and we're putting up our own money. You probably hear the beautiful sound of construction to the back. You hear that sound? Oh, that's music to my ears. I love that sound.

This was something they've wanted for at least 150 years. I thought I'd bring this out because this is going to be probably the finest ballroom ever built.

(END VIDEO CLIP)

COOPER: Perspective now from former Trump campaign adviser David Urban, former senior adviser to President Obama, David Axelrod, who was name checked there by the President and CNN Presidential historian, Tim Naftali. David Axelrod, I got to start with you. How could you possibly, possibly, possibly have passed up the opportunity to have a huge ballroom?

DAVID AXELROD, CNN CHIEF POLITICAL COMMENTATOR: Well, I had the same reaction. First of all, I passed it on to the Social Secretary because I wasn't exactly the ballroom guy, but I had the reaction, the same reaction I have now. I don't think there's one --

You could tap any American on the shoulder right now and say, you know, where does a ballroom at The White House rank on your list of priorities and desires? And not one of them will say, yes, that's what we need, especially in the middle of a tough economy as we were back in 2010.

The only American who was hungering for a ballroom was Donald Trump. And now he thinks that he has the authority to go and destroy, you know, what is essentially a sacred historic site, and put up, you know, a palace because he thinks he's a king. And I don't think this is going to sit well with the American people who have much higher priorities than a gigantic ballroom where the part of The White House used to stand.

COOPER: David Urban, do you think this will sit well or sit fine with his supporters?

DAVID URBAN, CNN POLITICAL COMMENTATOR: Yes, you know, Anderson, I think this is much ado about nothing. The White House has been renovated, numerous times. I mean, going back, to Tim Naftali, the historian here will tell us, but, you know, there was no Oval Office for a long time. There was no West Wing, it was added. The East Wing was added to the executive mansion. There were major, major pieces that were added, parts added, major renovations done when David Axelrod was there, 300 million bucks that our network reported on. Now, that was underground. It was plumbing, but it went on for years.

When President Truman was President, he actually moved out of the White House, moved across to Blair House for the entire part -- the entire second term of his presidency while they gutted the place. So, it is a living building. It will continue to survive, it's not the world, the Republic is not going to collapse. And I suspect that presidents in the future will greatly enjoy and benefit from having a much expanded space.

The East Wing, David Axelrod knows and Tim knows was very small. That East Room, the State Room there, the where you have press conferences and dinners. Its tiny and I think a country as big, as great as America can have a little bit bigger and nicer space in The White House.

COOPER: Tim, is this the same as past presidents who have, you know, renovated, Harry Truman is, you know, as we pointed out and David reiterated, you know, gutted from the inside.

TIM NAFTALI, CNN PRESIDENTIAL HISTORIAN: Well, David is right that The White House has evolved and indeed its different from The White House that, John Adams understood. But it's changed because presidents have participated in a process. They understand that they have inherited the building, and they're going to pass it on to someone else. It's the People's House.

So indeed, Harry Truman did have to -- the entire Truman family had to move out of the White House, but why? Because the place was no longer structurally sound.

The Corps of Engineers said it was going to fall down. That's why he left. And how did they rebuild it? They rebuilt it with guidance from a bipartisan commission with members chosen by the Congress of the United States and the President, and that commission helped design the new White House. So, the idea that was done unilaterally by Truman is actually made up.

And go back to Theodore Roosevelt, indeed, he did put his stamp on The White House. He brought in a very good, architectural team. McKim, Mead and White. But the money came from Congress, and so, Congress had some oversight powers over the creation of the West Wing.

The East Wing was built in World War II, and it was largely built for military reasons. You know, before Pearl Harbor, the President of the United States did not have a bomb shelter. The first bomb shelter was built under the East Wing. It later became known as the Presidential Emergency Operations Center and that's where the Cheneys and ultimately the Bushes went on nine 9/11.

[20:10:26]

COOPER: So, you're saying there should be a process?

NEFTALI: No, first of all, there should be a process about tearing something down that has such historical value to the entire country. Secondly, there should be a process about what replaces it.

The history of the modern First Lady and Second Gentleman is in that building and that building is gone.

COOPER: As Betty Ford said, it's the heart.

David Axelrod, I want to bring you in, because I want to play a clip of something. then President Obama said about then citizen Trump at the now infamous White House Correspondent's Dinner in 2011.

(BEGIN VIDEO CLIP)

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: Say what you will about Mr. Trump. He certainly would bring some change to The White House. Let's see what we've got up there.

(END VIDEO CLIP)

COOPER: I believe that's the Winter Palace. Obviously, that night was a lot of people say kind of instrumental. Clearly Mr. Trump, citizen Trump at that point was not happy.

You know, David Axelrod, first, the paving over of the Rose Garden, the demolishing of the East Wing. Do you think this is it for changes?

AXELROD: Well, I would never predict that and will not know until he makes them, because the President doesn't believe he's accountable to anyone.

You know, it's so interesting to me, Anderson, that next year we celebrate the anniversary of our Declaration of Independence from a from a king. And now we're trying to turn the White House into a palace, and we have a leader who doesn't believe that he has to be accountable to anyone for doing it. This was like a lightning strike demolition here, much more extensive than he had suggested that would be necessary.

And he alone is the one who's determining what the plans should be. So, who knows what he thinks he can do next and I think that's one of the concerns here. He is a temporary resident there. I don't know if he recognizes that, but he's going to leave and as Tim pointed out, this is, you know, you are a trustee and you pass it along to the next person and what he's doing here is completely out of sync.

But my bigger point, as I made earlier, is I also don't think people -- I think this is so out of touch with what people care about and what people want in this country.

They are trying to -- he's tearing the roof off of the off of the East Wing. They're worried about keeping a roof over their head and he should be focusing on that and not this.

COOPER: David Urban. I mean to Tim Naftali's point, should there have been a process, you know, at least some sort of public process or discussion?

URBAN: Yes, so, Anderson, as you may recall, the D.C. Planning Commission has been all -- it's been staffed with Trump supporters to begin with. You may recall that when the Fed was being renovated. So, I'm not quite sure -- going before, like the local zoning board would make much difference in this case. But you know, and just hear the comments about paving over the Rose Garden, listen, if you've been to the Rose Garden, it's not paved though the Rose Garden still exists. The grass was taken out, pavers were put down so that you could go there in the spring and other times when it's pretty muddy and you could use it full year round now.

So, the Rose Garden still exists American people, I suspect that when this is all done, people will look back and be quite puzzled because I think it's going to end up looking pretty spectacular.

COOPER: Its paved over, though, right?

URBAN: Well, its they're pavers on the ground, but the Rose Garden, the bushes, the shrubbery, it all still exists. The Rose Garden still exists intact. The grass, the muddy grass in the middle of the Rose Garden was taken out because it gets -- you can imagine when you have a press gaggle, you have a press conference, you do, things like when they present the commander-in-chief's trophy. They have the Army football team or the Navy football team and a couple hundred people in the press there. It gets muddy as heck and so, now they put pavers down so that people can set up cameras and sit in chairs.

COOPER: Yes and it's called a club now.

AXELROD: I don't know how we survived that. I don't know how we survived that all those years.

URBAN: It's called progress. It's called progress. Get ready, guys.

COOPER: Yes, I don't know. I'm not sure about the umbrellas.

URBAN: Well, listen, we got a basketball court instead of a tennis court. Nobody flipped out about that, so --

NEFTALI: Actually, tradition too, there was a match.

COOPER: Weren't there some complaints about a basketball court? Anyway, David Urban, David Axelrod, Tim Naftali, thank you.

Up next, the President pardons a convicted crypto billionaire.

[20:15:11]

(BEGIN VIDEO CLIP)

TRUMP: He had a lot of support and they said that what he did is not even a crime. It wasn't a crime, but he was persecuted by the Biden administration.

(END VIDEO CLIP)

COOPER: Well, it turns out he's not just any executive. His crypto business has already helped the Trump family make a lot of money in crypto. Also, the man behind Melania Trump's meme coin who is now being sued for fraud.

And the NBA gambling scandal. This is incredible, I talked to an expert exposing casino scams and shooting scams.

(COMMERCIAL BREAK)

[20:20:06]

COOPER: In a second term so far marked by controversial pardons, today we learned that President Trump granted one to a man whose company helped enrich the Trump family to the tune of billions. The pardon was for this man, Changpeng Zhao, the convicted co-founder of the crypto exchange Binance. Now, he pleaded guilty to a money laundering related charge and served four months in prison last year, Binance hasn't operated in the U.S. since 2023, when the company pled guilty to violating anti-money laundering requirements.

Now, all of that did not stop the Trump family from hosting their own new crypto firm, World Liberty Financial, on Binance.

Take a look at world Liberty's financials meet our team page on The World Liberty's website. There's the President of the United States, listed first as co-founder emeritus. His three sons, Eric Donald Jr. and Barron, all named as co-founders. This new pardon could open the door for Binance to operate in the U.S. again. The President was asked about it today by CNN's Kaitlan Collins.

(BEGIN VIDEO CLIP)

KAITLAN COLLINS, CNN ANCHOR AND CHIEF WHITE HOUSE CORRESPONDENT: Today, you pardoned the founder of Binance, can you explain why you chose to pardon him, and did it have anything to do with his involvement in your family's crypto business --

TRUMP: Which one was that?

COLLINS: The founder of Binance. He has involvement in your own family's crypto business.

TRUMP: I believe we're talking about this because I do a lot of people, I don't know who was recommended by a lot of people. A lot of people say that are you talking about the crypto person?

COLLINS: Yes.

TRUMP: A lot of people say that he wasn't guilty of anything. He served four months in jail. And they say that he was not guilty of anything. I don't know, I don't believe I've ever met him, but I've been told a lot of support, he had a lot of support, and they said that what he did is not even a crime. It wasn't a crime that he was persecuted by the Biden administration. And so, I gave him a pardon at the request of a lot of very good people.

(END VIDEO CLIP)

COOPER: Well, keeping them honest, the Justice Department, in announcing guilty pleas by both Zhao and Binance in 2023, said they, "threatened the U.S. financial system and our National Security."

The treasury secretary at the time, Janet Yellen, said about Binance, "Its willful failures allow money to flow to terrorists, cyber criminals and child abusers through its platform." The President said today that what Zhao did wasn't even a crime and that he doesn't know him, where Liberty Financial, the Trump family firm, hosted on Binance, has added more than $5 billion in wealth to the Trump family fortune, eclipsing the President's real estate assets, according to "The Wall Street Journal." But the President says he doesn't know the guy.

This is not the only crypto related controversy this week, I should point out. Back on January 19th, you may remember the day before the inauguration, Melania Trump announced the launch of a meme coin in her name. Well, on Tuesday, a lawsuit was filed against Benjamin Chao, this guy, co-founder of a crypto exchange Meteora, along with other defendants, alleging that the First Lady's meme coin was one of 15 that they launched that he launched to trick investors in a pump and dump scheme.

Now, the suit goes on to say that Mrs. Trump and this is important, who is not a named defendant in the lawsuit, was used as, "window dressing for a crime." But she is not in any way implicated in this lawsuit. So far, there has been no statement made by the First Lady.

Joining me now is Eric Lipton, investigative reporter for "The New York Times". So, let's talk about Binance, the co-founder known as C.Z., and what message do you think the President is sending with this pardon?

ERIC LIPTON, INVESTIGATIVE REPORTER FOR "THE NEW YORK TIMES": Well, it's a very odd arrangement because Binance has $2 billion worth of Stablecoin cryptos deposited in World Liberty Financial. And those Stablecoins are earning yield and essentially a huge return for President Trump, his family and Steve Witkoff's family, the Middle East envoy.

So, I mean, effectively, Binance is paying money to the Witkoff and Trump families at the same time as C.Z. was actively working through lobbyists to seek a pardon. So, here you have not only is Trump pardoning, you know, Santos and other people convicted of various crimes, but he is pardoning someone that is effectively through his business operations, making payments to him and to his members of his administration. So, it's a very unusual arrangement, really. And, you know, again, another precedent that were seeing in American history to see a direct financial connection between a pardon and the individual that got that pardon and the President's family.

COOPER: Binance pleaded guilty in 2023 to violation of U.S. Money Laundering Rules, paid a multibillion dollar fine, was subject to strict oversight by the Justice Department. How valuable would it be for Binance if the government lifted that oversight?

LIPTON: I mean, Binance wants to really build out its platform in the United States. It's the most popular crypto exchange in the world. C.Z. is massively wealthy, multibillion dollars, and they have not had a really large presence in the United States because of this regulatory scrutiny and the criminal case, but they're looking to build out to become a competitor to like Coinbase or Kraken that are major, large, you know, that are large U.S. operators. So, having this criminal case disappear is an important step for them to just kind of build out their operations in the United States. It's financially super important for Binance. It's very valuable action that the President has done at the same time, as you know, again, the Binance says doing something that's very valuable for the Trump family.

[20:25:35]

COOPER: Yes, it's incredible to watch this happening in real time, day after day. Eric Lipton, thank you very much.

Next, more breaking news. What we're learning a possible case against Democratic Senator who is another political opponent of the President.

(BEGIN VIDEO CLIP)

TRUMP: Adam Schiff is one of the lowest forms of scum I've ever dealt with in politics. He's a horrible human being, very dishonest person.

(END VIDEO CLIP)

COOPER: Also tonight, an incredible story. The FBI busted an alleged NBA gambling ring involving a current player, a team head coach and the New York mob, details on that.

Also, perspective from a professional gambling industry cheating expert on how some of the alleged scheme was done.

(COMMERCIAL BREAK)

[20:30:58]

COOPER: We have breaking news tonight about the status of an investigation into California Senator Adam Schiff, a frequent target of the President's. It comes after the Justice Department moved to indict other perceived political enemies of the President, including former FBI Director James Comey, New York Attorney General Letitia James, and Former National Security Adviser John Bolton.

President Trump was asked today if Senator Schiff could be next.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: Well, you know, I'm not going to comment on that. I will just say Adam Schiff is one of the lowest forms of scum I've ever dealt with in politics. He's a horrible human being, very dishonest person. I have no idea whats going on. I hope its true, but I dont know anything.

(END VIDEO CLIP)

COOPER: Joining us now is CNN Senior Crime and Justice Reporter Katelyn Polantz, with new reporting from after the President made those comments this afternoon. So where do things stand tonight with the Schiff investigation? KATELYN POLANTZ, CNN SENIOR CRIME & JUSTICE REPORTER: Well, Anderson, I've been hearing for some time now that the prosecutors in the District of Maryland who had been looking into this allegation of mortgage fraud around Adam Schiff, there have been -- they've been hesitant to charge a case that they are looking at the evidence and they are just not seeing it at this time.

But, but the investigation remains ongoing. That is what the sources were telling me today. And that there's a discussion now happening between the the Deputy Attorney General. So that's the political leadership of the Justice Department and these prosecutors in Maryland on what to do now. What are the next steps?

Potentially, they will be reviewing more records. But, Anderson, this is just highlighting this difference between what Donald Trump says publicly that he wants to see Adam Schiff prosecuted, just like he has seen Letitia James charged, James Comey charged, and the discussion and the work that's being done inside the Justice Department at this time. We just dont know how this is going to end.

COOPER: There's also news about Former Special Counsel Jack Smith possible testimony in front of Congress. What Smith asking for?

POLANTZ: Well, Smith, he wants to testify. He wants to do it publicly. And he also wants the Justice Department to make sure he will not be punished if he testifies publicly. He is going to be also going, according to some sources that I was talking to, to the Justice Department, seeing if they will give him the backing to talk about part of his report on the classified documents investigation that led to charges of Donald Trump.

Also, if they will allow him to talk about grand jury information, essentially what was going on inside of his investigation. But he is asking Congress right now, hey, if you want me, put me up in front of the public in an open hearing. And Chuck Grassley, the chairman of the Senate Judiciary Committee, Anderson, he says that he wants an investigative foundation first.

So documents from the Justice Department and the FBI, but Anderson, Grassley also says Jack Smith certainly has a lot of answering to do. So, no conclusion there either.

COOPER: Katelyn Polantz, thanks.

For more on this, I'm joined by Congressman Seth Moulton, Democrat from Massachusetts, who served on the Armed Services Committee. He's also running for Senate.

Congressman, a federal prosecutors in Maryland are hesitant to charge Senator Schiff or Congressman Schiff. What do you think the odds are that the President would remove the U.S.. attorney there, as he did in the Eastern District of Virginia, over the James Comey, Letitia James investigations?

REP. SETH MOULTON (D), MASSACHUSETTS: I mean, they seem pretty high. You know, Donald Trump seems to think that the Department of Justice justice is his personal vendetta machine. He also seems to think its his personal ATM, since he's planning to get $230 million approved by his own lawyers, to supposedly, you know, pay him back for the terrible pain that he's gone through for committing crimes and having them investigated.

So he's totally corrupting the justice system of the United States. And I think he'll continue.

COOPER: It's interesting, though, tonight to hear the statement that he made earlier today where he said, essentially, well, look, I'm not going to comment on this. I, you know, I dont know what investigators are up to. I dont -- you know, I'm not getting involved in that essentially, after that direct message to Pam Bondi came out where he said, Pam, you know, what about Shifty Schiff and all the others?

[20:35:05]

I dont know if he's learned a lesson from that, but he's clearly trying to, on the face of it, say, you know, he's not involved in any kind of investigation.

MOULTON: He also said two weeks ago that he wouldnt touch the East Wing of the White House, and now he's demolishing it, to its foundation. So Donald Trump lies incessantly. He lies incessantly.

And the the reality is that what's so pathetic about this situation is that Republicans to a man, defend him. You know, Chuck Grassley, I mean, he's a senior, as you get in the United States Senate. And yet he seems more intent on defending Donald Trump than standing up for the Constitution, standing up for the rule of law, or doing his job as the chairman of one of the most important committees in Congress.

COOPER: I want to ask you about the demolition of the East Wing, because the President says, look, the ballroom project is long overdue. It's important for america to put his best foot forward when entertaining world leaders. Even some people aren't necessarily fans of the President say, you know, the East Wing needed some upgrades at the complex. What do you -- clearly you dont think they're tearing down is a good idea. What do you think should have been done, if anything?

MOULTON: Well, look, I'm not an architectural expert on the White House. I just think that the President should tell the truth. It's like the most base line expectation for the President of the United States. If he says he's not going to tear down the East Wing, then he should not tear down the East Wing.

But whats also remarkable about this situation, Anderson, is the timing. He's spending $300 million on a pet project renovation for his own home when so many Americans are not going to be able to afford their basic health care. And that's why you see fellow Republicans like Marjorie Taylor Greene, you know, at times one of the most ardent defenders of the President, saying her own family cannot afford health care. And that's why she says the Republicans have got to stop this nonsense of keeping the government shut down and agree with Democrats to make health care affordable for Americans all across the country. COOPER: I understand the juxtaposition youre making. I mean, you know, the President would say, well, look, donors are funding that ballroom. He claims he's going to give some of his own money, that remains to be seen. The fact that it's funded by donors, does that change your opinion at all? Clearly not?

MOULTON: Look, my point is, where is his focus? Is his focus on the American people? Or is his focus on, you know, self-aggrandizement, making his own home? Be more special or grander, you know, more reflect his gold plated image. That's what the President is focused on right now, and Americans are hurting.

Americans need help. The fact that people are not going to be able to afford their health care this fall, the fact that federal workers are lining up at food banks because they cant afford to eat, and the fact that our troops are not going to get paid on november 1st, those are the concerns that the President of the United States should be focused on, not renovating the White House.

COOPER: Congressman Seth Moulton, thank you.

Up next, major gambling ring, a major gambling ring broken up, allegedly involving key NBA figures and the mafia. We'll talk to a professional cheating prevention expert on how the mob allegedly used high tech tools to steal from their victims.

(COMMERCIAL BREAK)

[20:43:05]

COOPER: Two major alleged sports gambling and betting schemes were busted today by the FBI, allegedly involving four New York mafia families, as well as current and former members of the NBA, including a hall of famer. More than 30 people were indicted in investigations across 11 states, involving tens of millions of dollars.

In one scheme, prosecutors accused mobsters of running rigged poker games where they stole from their victims by using high tech tools like an X-ray card table that allowed them to read victims cards from underneath. Basketball Hall of Famer Chauncey Billups, who's head coach of the Portland Trail Blazers, is charged in the alleged scheme, as is former NBA player and assistant coach Damon Jones.

Miami Heat Guard Terry Rozier is charged, along with others in a second alleged scheme, a betting scam involving insider information on NBA games. We wanted to learn more about the high tech equipment to rig poker games. I'm joined by Sal Piacente, he's an expert in exposing casino scams and cheating techniques.

Sal, I'm fascinated by this. So hidden cameras, X-ray tables, rigged shuffling machines, I mean, it sounds like something out of a movie. Can you just show us how some of this works?

SAL PIACENTE, PRESIDENT, UNIVERSAL GAME PROTECTION DEVELOPMENT INC.: I sure can. Well, first of all, the shuffle machine. Well, lets talk about the X-ray table since you have that up. That's a table that was designed for cheating. It has cameras underneath the table built in that can actually see through the felt.

COOPER: That's incredible.

PIACENTE: That way -- you can use legitimate cards. They dont have to be marked anything special, any deck and you could see it. And then that information would be transmitted to another player or another person who would relay that information back to the table.

Now they also have shuffle machines, the deckmate 2, that machine legitimately has a camera in it. That way, the shuffling machine could know every card that was dealt and can know exactly if any cards are missing and what that card is. You can actually take that deck, put a deck of cards into that machine, and then that machine will sort this deck out in order.

COOPER: Wow.

PIACENTE: The cheaters --

COOPER: Yes, go ahead.

PIACENTE: Go ahead.

COOPER: No, no, no -- yes, go ahead.

[20:45:12]

PIACENTE: The cheaters took that camera and used it for their advantage. They hacked the machine where they can utilize that camera to know what everybody is getting. And then that machine will actually transmit to the cheaters who's going to win.

COOPER: And when it -- what about this earpiece? I mean, is that something someone could notice?

PIACENTE: No, no, I mean, they do have earpieces, but I'll give you one example. If we just come right down over here, I'll show you this earpiece that I have. It's very, very tiny and that is the whole earpiece right there.

COOPER: Wow. And so what -- the earpiece, they take information from the card readers and stuff, and that's how they pass the information to someone else in the room?

PIACENTE: Exactly. That information will be transmitted to another person, and then the person at the table would take this earpiece, drop it in. And now, if you were sitting right next to me, you cannot see that earpiece. But I can hear everything clearly whoever's speaking to me.

COOPER: Wow.

PIACENTE: And not only one way to get that earpiece out. And that's what a magnet.

COOPER: So you heard -- you actually take it out with a magnet. It's in there -- wow. So you heard the FBI talk about special contact lenses that could read pre-marked cards. I mean, I didnt know that was a thing either.

PIACENTE: Sure. You look at this deck of cards onto the table. If I put this deck right here, that looks like a regular deck of cards.

COOPER: Yes.

PIACENTE: If you actually saw, what is that top card? Honestly, I cant tell you. But if I put my contact lenses on or if you're wearing these poker glasses, you'll be able to look right through that filter and see exactly what that card is.

COOPER: Wow. That's incredible. How common are these techniques and technology? I mean, how easy is it to get this stuff? How common is it?

PIACENTE: It's very easy. This stuffs all available online. They use something called an analyzer. Now, the analyzer is different. That's getting into the high tech. And what the analyzer is, I'll show you. It looks like a regular cell phone. And if you put your sim card in here, it acts like a regular phone.

You can take pictures, play music, receive calls, do texts. But if I punch in a certain code, now it becomes a cheating device. So well play Texas Holdem and you can name any amount of players. It doesnt make a difference. We'll use three just for arguments sake to make it easy.

And I'm going to put this on voice so you can actually hear this out loud. So now, this camera is ready to go. You'll actually hear what this phone is going to say. So if you take this deck of cards, shuffle them up. When this deck is cut and placed onto the table, that camera is going to speak.

And if you listen, you'll hear it. Let me just move it back a little more.

UNIDENTIFIED FEMALE: Three, one.

PIACENTE: Three, one. The third hand is going to win right now. And the seat one will get the second best hand. So if you're sitting in seat three, you know right now you have a guaranteed winner --

COOPER: Wow.

PIACENTE: -- with a jack ace, burn, pair of three 4s. And you win, ace, three of a kind with an ace kicker.

COOPER: But -- how do -- I mean, I'm dumb on this. How does the phone know that?

PIACENTE: There is a secret camera right here, a hidden camera, not a secret camera, but a hidden camera right here. And it actually reads the order of the cards. The cards are marked invisibly on the side with a barcode. COOPER: Wow.

PIACENTE: That way, the camera scans the cards and knows exactly whos going to win.

COOPER: So for that, you'd have to have the camera on the table.

PIACENTE: Exactly. Now, if you said to me no cell phones on the table, I actually have a watch that could transmit that information to my cell phone in the pocket --

COOPER: Of course you do, Sal.

PIACENTE: -- how to do your piece.

COOPER: Of course, you got a watch. I bet that necklace probably has something to.

PIACENTE: It does, but that's for another day. But that's why --

COOPER: Yes.

PIACENTE: Oh, go ahead, I'm sorry.

COOPER: No, no, no, go ahead.

PIACENTE: That's why these machines, they also have another shuffle machine that's designed to do a false shuffle. When the cheater puts the machine, the cards into the machine, the machine looks like its shuffling, but it doesnt. It just makes it sound. Then when the dealer takes him out, the dealer just deals and it's ready to go.

COOPER: Wow.

[20:50:07]

PIACENTE: That's why some private places they insist the dealer does a hand shuffle after they come out. And then a legitimate cut. So to combat that, here's what the cheaters came up with. These cards come out of the machine, they're set up, ready to go. But now you want the dealer to do a shuffle.

So when I mix these cards, I'm going to make it look like they're being mixed. But, honestly, they're not. Now, I square the deck up, I give it a nice clean cut, and if I deal out three hands, I'm going to make sure seat three wins. And I'm going to make sure everybody else has a good hand.

So heres a possible straight. He's staying in, pair of kings, He's staying in. You have a two jack suited. You're staying in. And you know you're going to win. Burn. Here's your flop.

Now you have a 3, 4, 5, 6. Youve got your straight almost. This guy has three of a kind. He's loving it. And you're sitting here right now with three diamonds. Burn. Here's your flop.

Now, he has his straight. He's happy. He has his three of a kind. He's happy. And now you win with the diamond flush.

COOPER: Wow. Hey, Sal, I dont even know what burn, here's your flop means, but that's going to be my new saying. I'm going to just say that all the time. Burn. Here's your flop.

PIACENTE: But the big thing is, I didnt shuffle the cards. I made it look like they did.

COOPER: Wow, that's incredible.

Hey, Sal, I got to go, but it's fascinating. And you're -- man, you're the expert on this. I'm going to check out that website I saw you plug in.

Sail, Piacente --

PIACENTE: Thank you.

COOPER: Yes, thank you very much. Fascinating.

Coming up next, how AI slop is filling up the internet and what it's doing to adults and kids alike, and what AI slop is. We'll tell you ahead.

(COMMERCIAL BREAK)

[20:56:35]

COOPER: By the way, Sal's sister Rosie was watching. She's a fan. So, hi, Rosie. We've certainly seen plenty of what's called AI slop lately, including in the form of video memes from the President. And on this program, we've been discussing the ways AI will change our society and what it may mean for creativity and our collective humanity.

The headline from tech journalist Charlie Worsley's latest piece for The Atlantic on the subject reads, "A Tool That Crushes Creativity, AI Slop is Winning." He writes, "To live through this moment is to feel that some essential component of our shared humanity is being slowly leached out of the world. Spend enough time online, you'll see that not only is this cheaply rendered synthetic content everywhere, it's quietly shaping culture. It's become a way that marketers advertise, that politicians produce propaganda. It's changing how people communicate with one another."

Charlie Worsley joins us now. Your piece in The Atlantic, I think, is so important. This term AI slop is a major theme in your piece. Can you just explain what that is?

Hey, Charlie, we're having trouble hearing from you. Let's -- like, your sound is down. Not hearing from Charlie. We're going to try to reconnect. Charlie writes about the experience of browsing a feed of AI generated videos on Meta's AI app, and we actually created some of our own. But I'll show you, if we're able to get him back.

At the Vatican today, there was truly a milestone event. King Charles and Queen Camilla not only visiting with Pope Leo, but publicly praying together in the Sistine Chapel in a special ecumenical service. The first since at least the reformation.

More from CNN's Christopher Lamb in Rome.

(BEGIN VIDEOTAPE)

CHRISTOPHER LAMB, CNN CORRESPONDENT (voice-over): History made in the Sistine Chapel.

UNIDENTIFIED MALE: Let us pray.

LAMB (voice-over): For the first time in more than half a millennium, an English King and Pope prayed together. King Charles III and Queen Camilla on an historic visit to the Vatican, emphasizing unity and the King and the Pope's concern for the environment. The Royal and Vatican choirs singing together underneath the famous Michelangelo frescoes.

The King's trip is an extraordinary historical turnaround. 500 years ago, Henry VIII broke with Rome and established himself as head of the Church Of England. For centuries, the papacy in the monarchy saw each other with suspicion. Now King Charles, who is the supreme governor of the Church of England and the first American pope, have put those historic divisions to one side.

Charles and Pope Leo exchanged gifts and honors. A papal knighthood for Charles, and membership of the order of the bath for Leo, an ancient British title traditionally given to heads of state.

UNIDENTIFIED MALE: In 1959 --

LAMB (voice-over): Later, at the Basilica of Saint Pauls outside the walls, Charles took part in another service. He was seated on a specially commissioned chair, engraved with the motto that they may be one. The King's visit comes as his brother Prince Andrew is embroiled in the Jeffrey Epstein scandal that risked overshadowing this trip.

And as the King continues with his treatment for cancer. At a moment of difficulty, the King is drawing on his faith. And at the Vatican, sharing his desire to build bridges between churches in a way no british monarch has done for centuries.

(END VIDEOTAPE)

LAMB (on-camera): Well, Anderson, it seemed that King Charles really wanted to be at the Vatican today and meet with Pope Leo. He is a man of deep personal faith and has really wanted to engage with the Catholic church. Of course, Pope Leo is not the only pope that King Charles has met this year. He saw Francis.

Just a few days before the Pope died in April, he had to postpone what would have been a longer trip because Francis was sick. Clearly, though, that being in the vatican, taking part in these historic events meant something very important to King Charles personally. That's what came across today during this historic visit, Anderson.

COOPER: Christopher Lamb, thanks so much.

That's it for us. The news continues. The Source with Kaitlan Collins starts now. See you tomorrow.