This chapter describes the architecture, betting strategy, and opponent modeling of the previous version of Loki (Loki-1), as it was at the beginning of the work done in this thesis (1998). Also, the limitations detected in Loki-1 and the changes implemented to overcome these limitations are outlined. This chapter provides a summary of the material necessary to place the research described in this thesis in context. See [4], [5] and [19] for more details on Loki-1.