The usual seminal reference for this plot is “Correcting a Mistake” in Hatton and Plate's Magicians' Tricks: How They Are Done, 1910, p. 93. An early record of Dai Vernon's experimenting with the plot (later called “Matching the Cards” in Dai Vernon's Inner Secrets of Card Magic, 1959, p. 22) appeared in The Sphinx, Vol. 24 No. 11, Jan. 1926, p. 425, in Max Holden's “Trouping Around in Magic” column.
Fred Braue put a gambling spin on the plot in his “Magician vs. Gambler” in Hugard's Annual of Magic 1937, 1937, p. 43. In the same year, Joe Berg published his handling, “The Magician Makes Good”, in Here' New Magic, 1937, p. 8.