This is awesome. Believe it or not, it's an old vaudeville routine. W.C. Fields did something VERY similar to this in a film from 1934...the link is: http://www.youtube.com/watch?v=5MZWq14uD-A

Look for the cigar boxes around 2:52, and W.C. even adds his own bumbling flair to the routine.

Hey Videosifters! After being a regular visitor to the sift for the last year or so, I actually registered here today JUST to be able to comment on this.

He's not using a Svengali deck, and Jimmy Fallon isn't helping him out. NPH is actually an accomplished magician, and currently sits on the board of directors at the Magic Castle in Hollywood (where I work). Ta-da! Just good old fashioned slight of hand, my friends.