An apparatus and method of automatically shuffling a deck of playing cards is described. The apparatus includes three compartments disposed laterally with respect to each other and at least one compartment movable vertically with respect to another other compartment. Cards placed in one of the compartments are dispensed into the other two compartments so as to cut or strip the deck, and are returned to the original compartment by interleaving cards from the other compartments. The process may be repeated to substantially randomize the deck for use in playing a game of cards. The cards may be removed either through a top aperture through which the cards were introduced into the apparatus or using a removable tray.