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Casino operation book

However, many of the concepts and breakdowns of departmentalization within a casino ellucidated herein would be better off given in instruction through a hands-on application for the student in my opinion. As with any study text, the reading is dry yet factual and deals with ideal circumstances rather than touching on the practices of the industry.

Staffing formula are listed which dictate a specific three shift per day status for the employees who deal table games, yet in actuality, there may be four, five, and six different dealer starting times depending on staffing needs in comparison with staff's needs. Also the concepts herein are specific to megacasino operations and barely touch on State-run or Indian-run casino operations which are becoming more prevalent across the nation.

If you have worked in a casino for more than 6 months, you probably don't need to read this text except as a reference to mathematical formula. Dec 22, PMP rated it really liked it. Where would we be without this Casino textbook? Cries out for an Asian edition covering casino operations in the burgeoning gambling playgrounds of Asia.

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Readers also enjoyed. Fearing dominance in the industry was detrimental to free competition, the U. Department of Justice intervened when Hughes attempted to purchase the Stardust. After determining that the Department of Justice had no jurisdiction in the matter, Nevadas Gaming Commission approved Hughes license for the Stardust on April 30, Chapter 1 The History of Modern Gaming Subsequently, the Department of Justice requested a day delay in the acquisition so that they could investigate.

Harolds Club in Reno, purchased in , would prove to be the seventh and final acquisition in Hughes string of casinos. After Hughes entry into gaming, a Corporate Gaming Act was passed in by Nevadas gaming regulators. Prior to the passage of this act, every owner of a casino was required to be individually licensed.

With public corporations, licensing of thousands of stockholders was impractical. The Corporate Gaming Act allowed publicly traded corporations to own casinos without requiring every single stockholder to be licensed. The act was made retroactive to July 1, , and was prompted by Hughes decision to divest ownership in Hughes Tool Company, which he had solely owned.

The act opened the door for other public corporations to move with greater ease into the gaming industry. The building boom that began with Bugsy Siegel has continued with only slight interruptions. These properties, typified by themes that are carried throughout their every facet, include amenities such as world-class conference centers, art museums, upscale retail shopping areas, restaurants featuring award-winning chefs, full-service spas and high-end suites, all aimed at diversifying and expanding the demographic base of the casino customers.

The mega-resorts also feature large numbers of hotel rooms currently as many as 5, rooms at the MGM Grand and multipurpose arenas, which may seat up to 17,, used for concerts and sporting events. Tourists visiting the Las Vegas Strip today can stay at the five-star Bellagio featuring a man-made lake, view the panorama of the city from the top of the 1,foot-high Stratosphere Tower, which resembles the famous Space Needle in Seattle, and visit replicas of the Empire State Building, Coney Island, and the Statue of Liberty New York-New York all in one day.

Other tourist attractions include the Eiffel Tower Paris , a ship battle between a pirate ship and a British frigate Treasure Island , a lion. These projects will further enhance the image of Las Vegas as a vacation destination. Perhaps no one individual has acted as a greater agent of change in the face of the gaming industry over the past decade than Steve Wynn. Wynn is credited by many in the industry with transforming Las Vegas into a world-class resort destination.

Wynn today is the mastermind behind Wynn Resort, which will be the most ambitious project built to date in Las Vegas. The new mega-resort will include approximately 2, hotel rooms, a ,square-foot casino, 18 restaurants, an hole golf course, full-service Ferrari and Maserati dealerships, and a 2,seat domed showroom with a stage in the round.

A foot man-made mountain with a five-story waterfall and an art gallery featuring works by Picasso and Van Gogh will also highlight the property. Wynn Resort should serve to further establish Mr. Wynn as one of the modern-day innovators in the gaming industry. Formerly, Mr. The proceeds from this sale helped to fund the construction of The Mirage, which opened in Las Vegas in The Mirage, with its South Seas tropical theme, represented a large gamble, but would become one of the most successful properties in the history of the gaming industry.

The property was one of the first to fully integrate a clear theme throughout the operation and include a signature entertainment feature in the volcano provided free to the public as a marketing hook. Chapter 1 The History of Modern Gaming city in the United States and one of the top tourist destinations in the world. In October , Mr.

Wynns next project, Treasure Island, opened adjacent to The Mirage. Treasure Island, in the same manner as The Mirage, features a prominent theme and signature entertainment. The property has a pirate theme, and several times daily visitors can see at no charge a battle between a pirate ship and a British frigate.

The ship battle is complete with actors, cannon fire, and the sinking of the British ship. Wynns final two projects with Mirage Resorts were the elegant and award-winning Beau Rivage in Biloxi, Mississippi, and the Bellagio, which has become the only five-star mega-resort in Las Vegas. Both of these properties opened in and represent prime examples of the imagination, creativity, and attention to detail for which Steve Wynn is known. Mr Kerzners company, Sun International Hotels, is an international leader in family entertainment and gaming destinations with over 12 resorts and casinos on Paradise Island, in the Bahamas; in the United States; on the Indian Ocean island of Mauritius; and in the Middle East.

Kerzner has gained international acclaim for his imaginatively designed, high-quality, spectacular resorts. Mohegan Sun is currently one of the largest casino resort destinations in the world. He is acknowledged as the architect of the casino-resort industry in subSaharan Africa and has contributed significantly to the enormous success that the Indian Ocean island of Mauritius has achieved as a quality tourist destination.

One of Mr. With the completion in of the Lost City and its internationally acclaimed luxury hotel, the Palace of the Lost City, Mr. Kerzner turned his attention to international development. In May , he acquired Par-. The Paradise Island properties, including Atlantis, the Ocean Club, and several other smaller resorts, were placed in a new company named Sun International Hotels Limited. The 1,room Atlantis, Paradise Island, features a marine habitat, offering guests a complete range of water experiences, including several swimming pools, a river ride, one of the Bahamas most beautiful beaches, and an outdoor, open-air aquarium with millions of gallons of water and more than species of marine life in numerous exhibit lagoons.

Entertainment at Atlantis also features a world-class casino, fine themed dining, and sports, which include golf, tennis, and a complete range of water-related activities. Kerzner opened the Mohegan Sun gaming resort in Connecticut to a crowd of 60, on its first day. Initially, the gaming resort occupied acres on the Thames River and featured an authentic Native American theme celebrating the heritage of the Mohegan Indians, 3, slot machines and gaming tables, and more than 20 food and beverage outlets, including specialty facilities for children.

In he was graduated as a chartered accountant and worked as an accountant with one of Durbans largest firms, rising to become a junior partner by the age of In , in partnership with South African Breweries, he established the chain of Southern Sun Hotels, which revolutionized tourism throughout the country and was responsible for the leisure resort of Sun City. By the company was operating 30 luxury hotels with more than 5, rooms. These covered a broad spectrum of city and resort establishment complexes.

In , Kerzner decided to concentrate on casino resorts within the companys portfolio and sold his shares in Southern Sun to focus on Sun International South Africa. Having acquired control of the hotel-casino interests of Southern Sun Hotels, he shortly thereafter acquired the hotelcasino interests of Rennies Consolidated Holding Limited, and this transaction gave Sun International control of the major casino resorts in southern Africa.

Cheating and operating without a license were illegal, and it was the county sheriffs job to see that these things did not happen. Anyone seeking a gaming license had to be approved by a local fivemember board made up of the sheriff, the local district attorney, and three county commissioners. A requirement was also established at this time providing for casino operators to obtain a gaming license from the state as well as the local authorities. Once the tax on gross gaming win was established, responsibility for issuing the license and collection of the tax was assigned to the State Tax Commission, which was made up of the governor as chairman and six commissioners.

Estes Kefauver In , a U. Senator from Tennessee named Estes Kefauver chaired a Senate committee investigating organized crimes influence in America. The final report issued by the committee was highly critical of Nevadas regulatory environment and had the following to say: The licensing system which is in effect in the state has not resulted in excluding undesirables from the state, but has merely served to give their activities a seeming cloak of respectability.

Congress, When the Tax Commission began issuing gaming licenses, all currently licensed operators were merely grandfathered in and no attempt was. Chapter 2 Gaming Control made by the Commission to clean house Skolnick, , p.

Many of the licensed operators were either members of or had connections with organized crime. In testimony before the committee, Nevadas lieutenant governor admitted that little or no effort had been made to screen applicants. The publicity of the hearings brought national prominence to Kefauver.

In , Kefauver ran second to Adlai Stevenson as the Democrats choice for president Vallen, , p. Nevadas legislature realized that if gaming was to continue to prosper, changes had to be made to clean up the industry. Consequently, the Gaming Control Board the Board was created by the legislature in The Boards sole responsibility was to keep undesirables out of the industry.

To accomplish this, the Board began conducting a thorough background investigation of each gaming license applicant. After completing its investigation, the Board would make a recommendation to the Tax Commission as to whether the applicant should receive a license. The ultimate decision on licensing still rested with the Tax Commission regardless of the Boards recommendation.

This approach to licensing lasted until , when the current Gaming Control Act was passed. The Gaming Control Act relieved the Tax Commission of any authority concerning gaming and established a Gaming Commission that was to act in unison with the Gaming Control Board to govern the industry.

To ensure that gaming is conducted honestly. This is accomplished by the prevention of cheating and fraud by both the casinos customers and management. To ensure that the industry is free from corruption and the involvement of organized crime. This is accomplished by preventing unsavory or unsuitable persons from having any direct or indirect involvement in gaming. To ensure that all taxes owed are properly paid. This is accomplished by maintaining strict control over the financial practices of the licensee.

In Nevada, the responsibility for achieving these objectives rests with the Gaming Commission and the Gaming Control Board. The organizational chart shown in Fig. The Gaming Commission Nevadas Gaming Commission has two primary responsibilities: 1 to enact all gaming regulations and 2 to serve as the final authority on all licensing and disciplinary matters.

The five members of the Commission are appointed by the governor to four-year terms. Interestingly enough, in view of their enormous responsibility, the Commission members serve in a part-time capacity. In selecting the members of the Commission, the governor can choose whomever he or she wishes, provided that: 1.

No more than three Commission members are from the same political party, 2. None of the Commission members is actively engaged in or has a direct interest in gaming, and 3. Preferably, no more than two members are from the same occupational area. Gaming Control Board The Boards primary responsibilities are to protect and police the casinos Goodwin, , p.

The Board is made up of three members who are. Chapter 2 Gaming Control also appointed by the governor and serve four-year terms, similar to members of the Commission. One distinct difference between the Board and the Commission is that the Board members are full-time rather than part-time. The Gaming Control Act dictates to the governor whom he cannot choose for the Commission and, in contrast, whom he must choose for the Board.

Individuals selected to be Board members must be proficient in certain areas of expertise. The chairman of the Board must have five years of sound administrative experience. One member must be a certified public accountant with five years of experience in general accounting, or be an expert in corporate financing, auditing, economics, or gaming.

The third member must have full training and experience in the field of investigations, law enforcement, law, or gaming. Most often, this member is either an attorney or a retired police official. The various departments of the Board are assigned to those members with the necessary functional skills. Divisions of the Board Investigations When an individual submits an application for a gaming license, the Investigations Division of the Board conducts a routine, but thorough, background investigation.

In completing the background investigation, Board personnel will contact law enforcement agencies where the applicant has lived, as well as the Federal Bureau of Investigation FBI. Investigative agents with the Board fall into either the background or financial category Vallen, , p.

The applicant bears the entire cost of the investigation, including all agent salaries and travel expenses. Enforcement The Enforcement Division serves as the law enforcement arm of the Board. Each agent has police officer authority and routinely conducts undercover observations of gaming licensees. In addition, this division: Investigates player disputes, Reviews surveillance systems, Inspects and approves gaming tokens, Investigates and enforces the casinos compliance with the regulations and general standards of operations, 5.

Arrests anyone attempting to cheat the casino, and 6. Reviews all existing and new work card permits. Audit The Audit Division is the largest division of the Board. All agents hold accounting degrees, and the majority are certified public accountants. Every three years, each Group I and II licensee will be audited by. Audit Division staff to determine whether the proper gaming and entertainment taxes were reported and whether compliance has been maintained with gaming regulations.

The Audit Division also reviews and evaluates the internal control system of each licensee, monitors the financial stability of each licensee, and monitors compliance with currency transaction reporting requirements see Chapter 5. Attorney General In addition to the divisions listed, a staff of attorneys has been assigned to the Board and Commission by the Attorney Generals office.

The primary responsibility of the attorneys is to serve as legal counsel to the Board and the Commission. Gaming Policy Committee The Gaming Policy Committee was established in to give the governor a voice in policymaking. The exclusive purpose of the Committee is to discuss gaming policy, and its recommendations are advisory only and nonbinding to either the Gaming Control Board or the Gaming Commission.

The Committee meets on an ad hoc basis at the request of the governor and has not been convened since The expertise of the Committee members should yield sound advice concerning policy. The nine-member Committee is chaired by the governor, and the remaining eight members come from the following agencies and professions: 1.

The Board and the Commission designate their representatives, and the remaining six members are appointed by the governor. Gaming Licensing The Nevada Supreme Court has repeatedly upheld its decision that casinos are privileged enterprises. There is a general rule that persons have a constitutional right to engage in useful trades and occupations. Casinos are not considered useful trades and occupations; hence, it is a privilege to operate a casino.

Federal court has ruled that gaming is a privilege reserved to and conferred by the state and does not carry with it those rights inherent in useful trades and occupations. Chapter 2 Gaming Control In addition to being a privilege to operate a casino, it is also a privilege to work in a casino as a key employee, and to gamble in a casino. Any of these rights can be summarily taken away by the Board and the Commission Goodwin, , p.

All companies, their officers, and principal owners must be licensed or found suitable. Anyone seeking a gaming license must first prepare an application and submit it to Applicant Services, a subdepartment of the Investigations Division. As mentioned earlier, the applicant bears the entire cost of the investigation. Once the application is prepared, it is reviewed and an estimate is made as to how much the investigation will cost. The applicant then prepays this estimated cost.

The application is submitted to the Board, at which time an investigative team is assigned to the case. After the investigation, the applicant appears before the Board to answer any questions that have arisen from the background and financial investigation.

The Board then makes a recommendation as to the suitability of the applicant. Approximately two weeks later, the applicant comes before the Commission for another independent review. At the end of their questioning, the members of the Commission will vote on whether the applicant should receive a license.

The recommendation made by the Board determines what the Commission must do if the applicant is to be licensed. If the Board unanimously recommends against licensing, then a unanimous vote by the Commission is required for the license to be granted. If the Board unanimously recommends licensing or this vote is split, then only a majority of Commission votes are necessary for approval or denial.

Classifications of Nevada State Gaming Licenses The type of casino the applicant chooses to operate determines the type of license that is necessary. Nevada gaming licenses are either restricted or nonrestricted. Restricted If the applicant chooses to operate no more than 15 slots and no table or poker games, then a restricted license must be obtained. In addition, the machines must be incidental or adjunct to the primary business.

Two other types of gaming licenses qualify as nonrestricted: a stand-alone race book or sports pool, and a slot route operators license. A slot route operators license allows the holder to place slot machines in licensed locations and share in profits without being named on the license issued to the location. Hotel Room Requirements Effective July 1, , the state of Nevada requires a minimum number of hotel rooms before it will issue a nonrestricted state gaming license for a casino to be newly constructed.

In the past, the number of hotel rooms was only a local requirement. Under current requirements, the applicant must have at least rooms before the state will issue the license if the population of the county is , or greater. If an applicant wishes to open a race book or sports pool only, the hotel room requirement does not apply.

In addition to the state license, the applicant must secure a local license. Local jurisdictions have their own requirements before issuing a license. If the local room requirement is greater than the state requirement, then the local requirement applies. Any casino operation classified as nonrestricted in Reno must have at least hotel rooms before a local gaming license will be issued. The state requirement is met at rooms, but another rooms are required before Reno will issue the local license.

Whenever the state and local room requirements differ, the larger requirement must be met before the casino can open. In Clark County, rooms are required before a nonrestricted gaming license is issued. In all cases, increases in the room requirement are not made retroactive. That is, you are allowed to operate with the rooms required at the time the license was issued. What the Commission Is Looking for in an Applicant Any approval by the Commission will not be granted unless the Commission is satisfied that: 1.

The applicant is a person of good character, honesty, and integrity. The applicants background, reputation, and association will not result in adverse publicity for Nevada and its gaming industry. The applicant has adequate business competence and experience for the role for which application is made. Funding for the operation is adequate and from a suitable source.

Key Employee Licensing, Finding of Suitability, and Work Permits Two other types of approval are needed in addition to the approval to operate a casino: the approval to work in the casino as a key employee and the finding of suitability approval. Chapter 2 Gaming Control Finding of Suitability An individual may be called forward by the Commission to be found suitable.

In these cases, the individual must be found suitable to continue his or her relationship with the licensee. Typically, those called forward for suitability are individuals who have influence or a relationship with a licensee, but who are not directly involved in the control of the gaming operation. The following classes of individuals are those most likely to be called forward for a finding of suitability: 1.

Mortgage holders Landlords Lessors of property and equipment Lenders Junket representatives Those doing business on the premises Those providing goods or services. Key Employee Licensing When three or more members of the Commission believe that the public interest would best be served by having a key employee licensed, then the employee must be licensed. Regulation 3. Twice each year, each nonrestricted licensee is required by Regulation 3.

The report includes the following categories of employees who are actively engaged in the administration or supervision of the casino operation: 1. All individuals with the authority to manage the following departments: accounting; food and beverage; cage; credit and collections; personnel; internal audit; security; surveillance; entertainment; sales and marketing Any individuals who can enter into a contractual arrangement that is binding on the licensee and is reportable under Regulation 8.

Any individual who has been represented to the Board or Commission by the licensee as being important to the operation of the gaming establishment Any person who individually or in conjunction with a group formulates management policy As you can see, the annual Employee Report may include dozens of employees, but few are ever called forward for key employee licensing or suitability.

Key employees are restricted from gambling in the casinos where they work. Therefore, it is important to note what Regulation 5. This regulation shall not apply to the playing of or wagering on poker or panguingui. Work Permits A work permit of some form is required in most gaming jurisdictions. The work permit generally provides a photograph of the employee and must be in the possession of the employee while on duty.

Work permits are issued by state or local authorities in most jurisdictions. The introduction of the gambling bill had as its main objective the restoration of Atlantic City. Gaming Control in Atlantic City Before the gaming act was passed by New Jerseys legislators, the jurisdictions of Nevada, Puerto Rico and Great Britain were visited to determine the best control model.

After these different models of control were reviewed, the Casino Control Act was passed in and became regarded as the toughest ever enacted in the United States. These two agencies are very similar to their Nevada counterpartsthe Gaming Commission and the Gaming Control Board, respectively.

The Commission is composed of five members appointed by the governor to five-year terms. When the Casino Control Act was first passed, it stipulated that only the chairman would serve in a full-time capacity, with the remaining commissioners serving parttime. The legislators later decided that the workload and responsibility of the Commission was too great for part-time members.

Consequently, the Act was amended to provide that all commissioners would serve fulltime. As in Nevada, no more than three members of the Commission can be from the same political party N. The duties of the Commission are to 1 enact all gaming regulations and 2 serve as the final authority on all licensing and disciplinary matters.

In addition, the Commission must be present through its inspectors. Provisions for the continuous presence of Commission personnel represented a significant departure from the gaming control model employed by Nevada. The directors term coincides with that of the governor. Once the governor decides not to run or is defeated, the director of the DGEs term expires.

The investigation of all applicants for a gaming license, followed by a recommendation to the Commission as to whether the applicant should be licensed 2. Reviews and audits of casino operations 3. Enforcement of the Casino Control Act and its regulations 4. Prosecution of licensee violators before the Commission 5. Performance of continuing reviews of operations through on-site observations to ensure compliance with the Act and Regulations The DGEs findings serve only as a recommendation to the Commission and, as opposed to their standing in Nevada, have no impact on the way the Commission members must vote in order for an applicant to receive approval.

Nor does the directors recommendation determine how many Commission votes are necessary for applicant approval. In New Jersey, for an applicant to be approved as an operator, he or she must receive four yes votes. Approval for employee licensing requires only a simple majority. As the result of adverse background investigations, the Casino Control Commission forced all three to divest themselves of their respective companies before permanent licenses would be issued Demaris, , pp.

Hugh Hefner experienced the ire of New Jerseys regulators when the Playboy Club came up for licensing; he received only three of the four minimum votes necessary for licensing. In this case, Hefner was not willing to sell his interest in Playboy, and, as a result, Playboy was not issued a permanent casino license. Classifications of New Jerseys State Gaming Licenses Unlike Nevada, Atlantic City offers only one type of gaming license, which is a nonrestricted license that includes a requirement of at least rooms before the license will be issued.

Licensing In addition to the companies, their officers, and principal owners, most employees in Atlantic City also have to be licensed. Three categories of employees must be licensed: Key License category 1 , Gaming License category 2a , and Nongaming License category 2b. On the hotel side, positions included range from the vice president of hotel operations to the director of food and beverage. Gaming License Applies to those directly involved in the operation of the gambling: floorpersons, dealers, boxmen, and the like.

Nongaming License Applies to those who work in a casino but are not directly involved in the play of the games, such as cocktail waitress, maintenance, mail delivery, or any job that requires access to the casino floor.

Each tribe existed as a sovereign government, which meant that the tribes governed themselves as independent states. The concept of owning land came with the European settlers. In exchange for land, the Indians entered into treaties with European nations, and later the United States, that guaranteed the tribes continued recognition as sovereign nations. In , in Cherokee Nation v. Georgia, the Supreme Court ruled that Indian nations have the full right to manage their own affairs, govern themselves internally, and engage in political and legal relationships with the federal government.

Basically, what exists today are states within states. Gaming has long been a part of tribal culture. Many of the traditional games are still played today at Indian ceremonies and celebrations. The tribes have always believed that they have the right to conduct gaming on Indian lands. In California v. Cabazon , the Supreme Court upheld.

Table 2. Chapter 2 Gaming Control the tribes rights as sovereign nations to conduct gaming on Indian lands, free of state control, if similar gaming is permitted within the state where the reservation is located. The U. The Act established the judicial framework that governs Indian gaming.

Each member is appointed to a three-year term and must pass a rigorous background investigation by the U. Attorney General. Before appointment, each member must show that he or she: Has not been convicted of a felony or gaming offense, and Has no financial interest or management responsibility for any Indian gaming management contract. Further, IGRA established three classes of games with specific controls for each: Class I gaming is defined as traditional Indian gaming and social gaming for minimal prizes.

Regulatory control is vested exclusively in tribal governments. Class II gaming is defined as the game of chance commonly known as bingo whether or not electronic, computer, or other technological aids are used in connection therewith and, if played in the same location as the bingo, pull tabs, punch boards, tip jars, instant bingo, and other games similar to bingo.

Class II gaming also includes nonbanked card games, that is, games that are played exclusively against other players rather than against the house or a player acting as a bank. The Act specifically excludes slot machines and electronic facsimiles of any game of chance from the definition of Class II games. Tribes retain their authority to conduct, license, and regulate Class II gaming so long as the state in which the tribe is located permits such gaming for any purpose and the tribal government adopts a gaming ordinance approved by the Commission.

Tribal governments are responsible for regulating Class II gaming with Commission oversight. Games commonly played at casinos, such as slot machines, blackjack, craps, and roulette, fall in the Class III category, as. Chapter 2 Gaming Control well as wagering games and electronic games of chance. Class III is often referred to as casino-style gaming. Powers of the Commission a Budget approval; civil fines; fees; subpoenas; permanent orders.

The NIGC shall have the power, not subject to delegation 1 Upon the recommendation of the Chairman, to approve the annual budget of the Commission; 2 To adopt regulations for the assessment and collection of civil fines; 3 By an affirmative vote of not less than two members, to establish the rate of fees that are paid by each Class II or Class III gaming activity regulated by the Commission; 4 By an affirmative vote of not less than two members, to authorize the Chairman to issue subpoenas; and 5 By an affirmative vote of not less than two members and after a full hearing, to make permanent a temporary order of the Chairman closing a gaming activity.

Before a tribe can offer any Class II gaming, the tribe must first adopt an ordinance outlining how the gaming will be regulated. The Chairman must approve this ordinance. The ordinance must provide that: 1. Net revenues from gaming are not to be used for purposes other than: a.

The funding of the tribal government operations or programs, b. To provide the general welfare of the Indian tribe and its members, c. To promote tribal economic development, and, d. To donate to charitable organizations or e. To help fund operations of local government agencies. Annual audits are conducted by outside agencies, 3. The construction and maintenance of the gaming facility and the operation of the gaming is conducted in a manner that protects the environment, public health, and safety, and 5.

There is a licensing system that ensures that: a. Background investigations are conducted on primary management officials and key employees of the gaming enterprise and b. Include a means of licensing primary management officials and key employees of the gaming enterprise, with prompt notification to the Commission of the issuance of such licenses, and.

Chapter 2 Gaming Control c. A standard whereby any person whose prior activities, criminal records, reputation, or habits and associations pose a threat to the public interest or to the effective regulation of gaming shall not be eligible for employment, and d. Notification by the tribe to the Commission of the results of such background check before the issuance of any such license.

Net revenues from any Class II gaming operation conducted or licensed by the tribe may be used to make per capita payments to members of the Indian tribe, provided: a. The tribe has prepared a plan to allocate revenues, b. That plan has been approved by the Secretary of the Interior, and c. The interests of minors and other legal incompetents entitled to receive payments are protected and preserved, and d. The disbursements are subject to federal taxation. Class III gaming is lawful on Indian lands if: 1.

The gaming is authorized by an ordinance or resolution that 2. Is adopted by the governing body of the tribe that has jurisdiction over such lands, 3. The form of gaming is permitted within the state where the Indian lands are located, and 4.

Is conducted in accordance with a tribal-state compact entered into by the Indian tribe and the state. Tribal-State Compact Any tribe seeking to operate Class III gaming must request the state, where the Indian lands are located, to enter into negotiations for the purpose of creating a tribal-state compact. Before taking effect, the compact must be approved by the Secretary of the Interior. The compact will address: 1.

The application of criminal and civil laws and regulations of the Indian tribe or the state that are directly related to the licensing and regulation of the gaming, 2. The allocation of criminal and civil jurisdiction between the state and Indian tribe necessary for enforcement of such laws and regulations, 3. The assessment by the state of any monies in such amounts necessary to defray the cost of regulating the gaming, 4.

The taxation of the Indian tribe in amounts comparable to those assessed by the state for comparable activities, 5. Remedies for breach of contract,. Standards for operation, maintenance, and licensing of the gaming facility, and, 7. Any other subjects directly related to the operation of the gaming facility. Consequently, the NIGC established a means for a tribe to enter into a management contract with individuals, or a company, more experienced in the field of gaming.

Class III management contracts are subject to the following: All contracts must be approved by the chairman of the NIGC; The tribe and company must provide to the chairman the names, addresses, and other pertinent background information on each person or entity having a direct financial interest in, or management responsibility for, such contract. Reservation Land Tribes are permitted to buy land and place it in trust, thereby making the land part of the reservation.

Exceptions to this date are: 1 Such lands are located within or contiguous to the boundaries of the reservation as of October 17, , 2 the Indian tribe had no reservation on October 17, , 3 such lands are in Oklahoma and are located within the boundaries of the Indian tribes former reservation, 4 such lands are contiguous to other land held in trust or restricted status by the United States for the Indian tribe in Oklahoma, or 5 such lands are located in a state other than Oklahoma and are within the Indian tribes last recognized reservation within the state.

Number of tribal governmental gaming operations: several tribes operate more than one facility. Many tribes operate gaming facilities primarily to generate employment. LAND IGRA requires that land taken into trust status must 1 benefit the tribe, 2 not be detrimental to the surrounding community, and 3 be approved by the state governor.

Only 23 total land-into-trust acquisitions since for gaming purposes. Only 3 off-reservation land-into-trust acquisitions since only 78 total acres. Tribal government services, economic and community development, general tribal welfare, charitable donations, and any requirements for aid to local governments must be provided for before a tribe can file for a Revenue Allocation Plan. The Secretary of the Interior must approve any per capita payments as part of a Revenue Allocation Plan.

Only about one-fourth of tribes engaged in gaming distribute per capita payments to tribal members 73 tribes. Tribal members receiving per capita payments pay federal income tax on these payments. Federal law makes it a crime punishable by up to ten years in prison to steal, cheat, or embezzle from an Indian gaming operation, and that law is enforced by FBI 18 USC This gross win tax was in addition to the table tax already in place.

The governor, E. Carville, opposed the tax and attached the following note to the bill: Senate Bill imposes on the gambling business a type of tax which the State of Nevada has avoided in the past as a matter of policy. It has been strenuously argued that the gambling business is in an entirely different category from what we may, for the mere sake of differentiation, term legitimate business.

I feel, however, that with the State making this departure from its fixed policy, the effort will be made to extend the imposition of this type of taxation, and that the wiser course would have been to avoid this type of taxation, and obtain a just contribution from the gambling business by imposing a higher license fee. Approximately two years of operation under Senate Bill No.

Present guesses may be supplanted then by definite information, which will enable the Legislature to weigh the situation for taking intelligent action thereon. It is for these reasons that I have permitted Senate Bill No.

Respectfully submitted, E. Carville Governor. Chapter 3 Gaming Taxes The governor was certainly right about one thing:. A cash method of accounting is used, which means that the casino does not pay gaming taxes until the funds are collected. The tax is calculated as follows: preceding months gross gaming win minus any credit issued during the month that is still outstanding at months end; plus any previously issued credit that is collected during the month; equals the gross gaming win figure on which the tax is assessed.

Once the gross gaming win is calculated, the licensee pays taxes at the following rates: 3. One thing that premium players generally have in common is that they play on credit. Interestingly, the state of Nevada requires the payment of taxes not at the time the credit is extended, but at the time the credit is repaid by the player. Repayment of credit for premium players may not occur for an extended period of time because of the large dollar amounts involved, which results in a deferral of the associated gaming tax.

Often casinos find it necessary to settle a marker for an amount less than the face value. When a settlement occurs, NRS Credit instruments are often settled to: 1. Induce partial payment 2. Compromise a dispute 3. Retain a patrons business for the future Frequently, in todays competitive market, an agreement is reached between the casino and a premium player to discount the face amount of any subsequent credit instruments to induce timely payment.

If the player wins, he is paid the actual dollar amount of the winnings. Regardless of how much the player loses, the casino earns only the amount of the theoretical win. Any amount won by the casino over and above this theoretical win amount is only held in escrow by the casino.

NRS These circumstances include: failing to obtain the players signature or other written acknowledgment of the debt; failing to obtain the players address; failing to provide evidence that a reasonable effort was made to collect the debt; failing to provide evidence that the casino checked the players credit history prior to extending credit; and requesting that the unpaid balance not be confirmed at the time of an audit by the Gaming Control Board.

The Statute also provides certain exemptions related to slot machines, such as the cost of personal property distributed to a player as the result of a winning wager. A casino in Nevada can afford to be more daring in issuing credit since taxes are not generally payable on any uncollected amounts. In New Jersey, the casino must still pay a large amount of the tax even if none of the outstanding credit is collected.

Consequently, bad credit issuance decisions result in a substantial cost as far as the gaming tax is concerned. One of its primary objectives was to increase assurance that casino licensees were properly paying the required amount of gaming taxes. Regulation 6 requires each nonrestricted licensee to maintain detailed records pertaining to any revenue subject to gaming taxes or fees for a period of at least five years.

Failure by a casino licensee to maintain records as required may be determined by the chairman to be following an unsuitable method of operation. In a situation where records supporting taxable gaming revenue cannot be evidenced by the licensee, the Gaming Control Board may use other means to determine the amount of tax that should have been paid. Regulation 6 also requires each casino licensee to establish administrative and accounting procedures providing for control over the internal.

Chapter 3 Gaming Taxes fiscal affairs of the licensee. The procedures must be designed in a manner to reasonably ensure the following: 1. Assets are safeguarded. Financial records are accurate and reliable. Transactions are properly authorized by management. Transactions are properly recorded to facilitate reporting of gaming revenue and taxes, and to maintain accountability of assets.

Access to assets is through specific authorization by management. Asset accountability is periodically compared with actual assets and discrepancies are investigated. Adequate segregation of functions, responsibilities, and duties exists.

The casino licensee is required by Regulation 6 to submit a written system of internal controls that describe the administrative and accounting procedures established by the licensee. The written system of internal controls the system is lengthy and covers every department subject to gaming or entertainment tax. The document must address: administrative and accounting procedures; duties and responsibilities of personnel, organization, and structure; physical safeguards and controls and detailed operating procedures as they relate to the gaming areas.

The chief financial officer and chief executive officer or licensed owner must submit a signed letter attesting to the system's compliance with the requirements of Regulation 6. The MICS established specific control procedures that were required to be in place within the operation of each nonrestricted licensee. MICS were established for the following areas: table games; slots; bingo; keno computerized ; race and sports book; card games; cage and credit; entertainment; internal audit; and currency transaction reporting.

Alternative procedures that provide adequate control may be approved by the chairman based on a written request for a variance by the licensee. Otherwise, the licensee is expected to comply with the MICS. The licensee is required, on an annual basis, to have an independent accountant perform a comparison of the system submitted by the licensee to the MICS and to issue a report that identifies any procedures the accountant believes do not satisfy the MICS or any variations from the MICS granted by the chairman.

The report must also include responses from licensee management addressing any items of apparent noncompliance noted. As part of this revision, MICS were established for electronic data processing. In Nevada, the licensee has broad latitude in creating the internal control system that best suits the operation, whereas in New Jersey there is little flexibility in this process.

Table 3. Nevada Each casino presents its system of internal controls to the Board. Each system is evaluated, individually, against a set of basic minimum standards of operation and control. If these minimum standards are met, the casino is allowed to operate using its own methods and style of internal controls. Even though the basic minimum standards are the same, each Nevada casino may have a different way of operating.

New Jersey All systems of internal control are prescribed by statute and leave little room for innovation or changes. The experience and organization of the management team have a direct impact on the profitability of the casino operation. The mission of this chapter is to present and discuss the organizational structure of a typical casino and hotel along with descriptions of the responsibilities of a number of the key positions within the operation.

The chapter also provides a discussion of how to determine the number of employees needed to staff these key positions. Although every department and position is equally important to the success of the organization, only the positions within the casino department or those that are integral to the day-to-day operations are detailed.

At the bottom of the chart are the front-line employees, including dealers, cage cashiers, and change attendants. Toward the top of the chart are the management positions, including the games manager, the director of casino marketing, and the vice president of casino operations. As employees move up within the organizational structure, the skills necessary to perform the job functions change.

Front-line employees need technical skills to fulfill their position responsibilities, whereas employees at the top of the chart require fewer technical skills and more management skills. The management pyramid Fig. Variations based on the size of the operation, as well as the number and type of games offered, are common.

The reporting relationships and the assignment of responsibilities may also vary, depending on a number of variables, ranging from the skills and experience of the particular individuals. These variations are too numerous to be addressed in this chapter. The typical organization starts with the president and branches out, based on functional responsibilities.

The departments are divided along functional lines to provide for specialization as well as separation of responsibilities for accountability and control. The vice presidents of security, human resources, and finance all perform responsibilities that require them to operate independently of the operating department heads. For example, it would not be in the best interest of the operation for the director of surveillance, who is responsible for monitoring activity within the casino, to report directly to the vice president of casino operations.

Although at first glance there might appear to be some benefits to aligning the. The director of surveillance and his or her staff are a key part of the protection of the gaming operation and its assets, and any impairment of these responsibilities has a direct impact on the success of the operation.

Generally, the vice president of finance reports to the president directly. Depending on the ownership structure of the casino, the vice president of finance may instead have a direct reporting relationship to a representative of the owners. The vice president of finance is a key position in any casino organization, since the responsibilities of this position include establishing and tracking performance against budgetary guidelines, auditing the results of operations, regulatory compliance, and, in most casinos, overseeing the cage, credit, and collection functions.

This individual is not only a check and balance on the other operating departments, but is also responsible for safeguarding the assets, including the cash maintained for the day-to-day operation of the casino. The following are brief position descriptions for many of the key positions indicated in the organizational chart presented Fig. The re-. Ultimately, all personnel report to the president. The person in this position reports to representatives of the owners.

Vice President of FinanceResponsible for all financial activities for the operation. Direct reports normally include accounting, cage, credit, collections, information systems IS , and purchasing. Vice President of Casino OperationsResponsible for the overall operation of the casino, including slots, table games, and other gaming operations such as keno, race and sports, and poker. Gaming and gaming compliance are two critical areas of responsibility for this individual.

Vice President of Human ResourcesResponsible for employment, compensation, benefits, labor relations, training, and workers compensation functions, as well as compliance with applicable federal, state, and local requirements pertaining to these areas.

Vice President of SecurityResponsible for surveillance, security, investigations, safety, and risk management, which includes handling insurance issues and guest loss complaints. The following are brief descriptions for many of the key positions indicated in the organizational chart presented Fig. Supervises the shift managers. Shift ManagerResponsible for the operation of table games and the associated personnel during a particular shift.

Supervises the pit managers and all other table games personnel during the shift. Pit ManagerResponsible for overseeing the operation of the table games in a designated pit. Supervises the floorpersons and dealers within the pit and is also responsible for customer relations and games protection.

FloorpersonResponsible for supervising the operation of a group of table games within a pit. Supervises the dealers at the assigned tables. Also responsible for compliance with house rules and rating player action. DealerResponsible for the operation of a given table game. Dealers must comply with house rules for the conduct of the particular game. Pit ClerkCompletes pit transactions such as fills, credits, and markers through the use of the casino computer system or manually.

This position may report to either cage or casino supervisory personnel. Slots Slot ManagerResponsible for the operation of the slot department, including selection of machines and determination of floor configura-. Chapter 4 Casino Management tion, as well as machine maintenance and operation.

Supervises the shift managers and head slot mechanic. Shift Manager Slots Oversees the operation of the slot department, including all personnel during a particular shift. Responsibilities include customer relations and verification of large jackpot payouts. Head Slot MechanicResponsible for the maintenance and repair of all slot machines.

Also maintains records pertaining to all slot machines, including location, par sheets, and any changes to the machine. Supervises and trains all of the slot mechanics. FloorpersonResponsible for participating in the verification and conduct of jackpot payout and hopper fill transactions.

Supervises change attendants and booth cashiers. Change attendantsPerform customer service transactions, including making change.

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Hotel luxor and casino las vegas Prohibitionist policies often cite the potential for this type of betting to increase risk of gambling problems. Effective March 25,all casinos in United States including Nevada must comply with the same requirements. When the deposit is returned to the player, it is returned in the same denominations and number of bills of each denomination as in the original deposit. As such, some interesting implications of the leverage-earnings quality relationship Retain a patrons business for the future Frequently, in todays competitive market, an agreement is reached between the casino and a premium player to discount the face amount of any subsequent credit instruments to induce timely payment. Director of SurveillanceResponsible for the operation of the surveillance department, including staffing, games and guest protection, communicating with regulatory authorities, asset protection, and casino operation book compliance with rules surrounding game conduct house rulesgaming regulations, and internal control procedures.
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Casino operation book In this case, the casino is not allowed to cash out the chips and may also be required to report the transaction to the Nevada Gaming Control Board. Before the inclusion of casinos, financial institutions were limited to the following: 1. Customers who bought this item also bought. Jim Fox. Effective March 25,all casinos in United States including Nevada must comply with the same requirements.

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As a primer text on business operations within a casino, I can see the popularity of this work in a college atmosphere. Many of the mathematical formula given herein are fascinating from a statistical analysis perspective though it glosses over many permutation possibilities within card games and carnival games without clarifying the societal ramifications or the larger curiosity of gaming theory.

However, many of the concepts and breakdowns of departmentalization within a casino ellucidated her As a primer text on business operations within a casino, I can see the popularity of this work in a college atmosphere. However, many of the concepts and breakdowns of departmentalization within a casino ellucidated herein would be better off given in instruction through a hands-on application for the student in my opinion.

As with any study text, the reading is dry yet factual and deals with ideal circumstances rather than touching on the practices of the industry. Staffing formula are listed which dictate a specific three shift per day status for the employees who deal table games, yet in actuality, there may be four, five, and six different dealer starting times depending on staffing needs in comparison with staff's needs.

Also the concepts herein are specific to megacasino operations and barely touch on State-run or Indian-run casino operations which are becoming more prevalent across the nation. If you have worked in a casino for more than 6 months, you probably don't need to read this text except as a reference to mathematical formula. Dec 22, PMP rated it really liked it. Where would we be without this Casino textbook? Cries out for an Asian edition covering casino operations in the burgeoning gambling playgrounds of Asia.

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Labirint Ozon. Casino Operations Management. This updated edition features detailed coverage of: Current high-roller marketing tactics and their effect on profitability The effect of popular money management systems on casino profits The initial development process of an Indian casino Studies designed to identify the patronage motives of gamblers, including those of riverboat customers Slot club design: player rating issues, point accumulation schemes, and more Principles of casino floor design: managing table game and slot location Studies designed to measure the profit contribution of popular slot promotions Casino Operations Management, Second Edition uses simplified mathematics and statistics throughout, and provides readers with a thorough understanding of all aspects of the casino industry business.

It is a must-have reference for students and casinos that develop managers internally.

GAMBLING IMPACT NATIONAL STUDY

In addition, the Commission must be present through its inspectors. Provisions for the continuous presence of Commission personnel represented a significant departure from the gaming control model employed by Nevada. The directors term coincides with that of the governor. Once the governor decides not to run or is defeated, the director of the DGEs term expires. The investigation of all applicants for a gaming license, followed by a recommendation to the Commission as to whether the applicant should be licensed 2.

Reviews and audits of casino operations 3. Enforcement of the Casino Control Act and its regulations 4. Prosecution of licensee violators before the Commission 5. Performance of continuing reviews of operations through on-site observations to ensure compliance with the Act and Regulations The DGEs findings serve only as a recommendation to the Commission and, as opposed to their standing in Nevada, have no impact on the way the Commission members must vote in order for an applicant to receive approval.

Nor does the directors recommendation determine how many Commission votes are necessary for applicant approval. In New Jersey, for an applicant to be approved as an operator, he or she must receive four yes votes. Approval for employee licensing requires only a simple majority. As the result of adverse background investigations, the Casino Control Commission forced all three to divest themselves of their respective companies before permanent licenses would be issued Demaris, , pp. Hugh Hefner experienced the ire of New Jerseys regulators when the Playboy Club came up for licensing; he received only three of the four minimum votes necessary for licensing.

In this case, Hefner was not willing to sell his interest in Playboy, and, as a result, Playboy was not issued a permanent casino license. Classifications of New Jerseys State Gaming Licenses Unlike Nevada, Atlantic City offers only one type of gaming license, which is a nonrestricted license that includes a requirement of at least rooms before the license will be issued.

Licensing In addition to the companies, their officers, and principal owners, most employees in Atlantic City also have to be licensed. Three categories of employees must be licensed: Key License category 1 , Gaming License category 2a , and Nongaming License category 2b. On the hotel side, positions included range from the vice president of hotel operations to the director of food and beverage. Gaming License Applies to those directly involved in the operation of the gambling: floorpersons, dealers, boxmen, and the like.

Nongaming License Applies to those who work in a casino but are not directly involved in the play of the games, such as cocktail waitress, maintenance, mail delivery, or any job that requires access to the casino floor. Each tribe existed as a sovereign government, which meant that the tribes governed themselves as independent states.

The concept of owning land came with the European settlers. In exchange for land, the Indians entered into treaties with European nations, and later the United States, that guaranteed the tribes continued recognition as sovereign nations. In , in Cherokee Nation v. Georgia, the Supreme Court ruled that Indian nations have the full right to manage their own affairs, govern themselves internally, and engage in political and legal relationships with the federal government.

Basically, what exists today are states within states. Gaming has long been a part of tribal culture. Many of the traditional games are still played today at Indian ceremonies and celebrations. The tribes have always believed that they have the right to conduct gaming on Indian lands. In California v. Cabazon , the Supreme Court upheld. Table 2.

Chapter 2 Gaming Control the tribes rights as sovereign nations to conduct gaming on Indian lands, free of state control, if similar gaming is permitted within the state where the reservation is located. The U. The Act established the judicial framework that governs Indian gaming. Each member is appointed to a three-year term and must pass a rigorous background investigation by the U.

Attorney General. Before appointment, each member must show that he or she: Has not been convicted of a felony or gaming offense, and Has no financial interest or management responsibility for any Indian gaming management contract. Further, IGRA established three classes of games with specific controls for each: Class I gaming is defined as traditional Indian gaming and social gaming for minimal prizes.

Regulatory control is vested exclusively in tribal governments. Class II gaming is defined as the game of chance commonly known as bingo whether or not electronic, computer, or other technological aids are used in connection therewith and, if played in the same location as the bingo, pull tabs, punch boards, tip jars, instant bingo, and other games similar to bingo.

Class II gaming also includes nonbanked card games, that is, games that are played exclusively against other players rather than against the house or a player acting as a bank. The Act specifically excludes slot machines and electronic facsimiles of any game of chance from the definition of Class II games. Tribes retain their authority to conduct, license, and regulate Class II gaming so long as the state in which the tribe is located permits such gaming for any purpose and the tribal government adopts a gaming ordinance approved by the Commission.

Tribal governments are responsible for regulating Class II gaming with Commission oversight. Games commonly played at casinos, such as slot machines, blackjack, craps, and roulette, fall in the Class III category, as. Chapter 2 Gaming Control well as wagering games and electronic games of chance.

Class III is often referred to as casino-style gaming. Powers of the Commission a Budget approval; civil fines; fees; subpoenas; permanent orders. The NIGC shall have the power, not subject to delegation 1 Upon the recommendation of the Chairman, to approve the annual budget of the Commission; 2 To adopt regulations for the assessment and collection of civil fines; 3 By an affirmative vote of not less than two members, to establish the rate of fees that are paid by each Class II or Class III gaming activity regulated by the Commission; 4 By an affirmative vote of not less than two members, to authorize the Chairman to issue subpoenas; and 5 By an affirmative vote of not less than two members and after a full hearing, to make permanent a temporary order of the Chairman closing a gaming activity.

Before a tribe can offer any Class II gaming, the tribe must first adopt an ordinance outlining how the gaming will be regulated. The Chairman must approve this ordinance. The ordinance must provide that: 1. Net revenues from gaming are not to be used for purposes other than: a. The funding of the tribal government operations or programs, b. To provide the general welfare of the Indian tribe and its members, c.

To promote tribal economic development, and, d. To donate to charitable organizations or e. To help fund operations of local government agencies. Annual audits are conducted by outside agencies, 3. The construction and maintenance of the gaming facility and the operation of the gaming is conducted in a manner that protects the environment, public health, and safety, and 5.

There is a licensing system that ensures that: a. Background investigations are conducted on primary management officials and key employees of the gaming enterprise and b. Include a means of licensing primary management officials and key employees of the gaming enterprise, with prompt notification to the Commission of the issuance of such licenses, and.

Chapter 2 Gaming Control c. A standard whereby any person whose prior activities, criminal records, reputation, or habits and associations pose a threat to the public interest or to the effective regulation of gaming shall not be eligible for employment, and d. Notification by the tribe to the Commission of the results of such background check before the issuance of any such license.

Net revenues from any Class II gaming operation conducted or licensed by the tribe may be used to make per capita payments to members of the Indian tribe, provided: a. The tribe has prepared a plan to allocate revenues, b. That plan has been approved by the Secretary of the Interior, and c.

The interests of minors and other legal incompetents entitled to receive payments are protected and preserved, and d. The disbursements are subject to federal taxation. Class III gaming is lawful on Indian lands if: 1. The gaming is authorized by an ordinance or resolution that 2.

Is adopted by the governing body of the tribe that has jurisdiction over such lands, 3. The form of gaming is permitted within the state where the Indian lands are located, and 4. Is conducted in accordance with a tribal-state compact entered into by the Indian tribe and the state.

Tribal-State Compact Any tribe seeking to operate Class III gaming must request the state, where the Indian lands are located, to enter into negotiations for the purpose of creating a tribal-state compact. Before taking effect, the compact must be approved by the Secretary of the Interior.

The compact will address: 1. The application of criminal and civil laws and regulations of the Indian tribe or the state that are directly related to the licensing and regulation of the gaming, 2. The allocation of criminal and civil jurisdiction between the state and Indian tribe necessary for enforcement of such laws and regulations, 3.

The assessment by the state of any monies in such amounts necessary to defray the cost of regulating the gaming, 4. The taxation of the Indian tribe in amounts comparable to those assessed by the state for comparable activities, 5. Remedies for breach of contract,. Standards for operation, maintenance, and licensing of the gaming facility, and, 7. Any other subjects directly related to the operation of the gaming facility. Consequently, the NIGC established a means for a tribe to enter into a management contract with individuals, or a company, more experienced in the field of gaming.

Class III management contracts are subject to the following: All contracts must be approved by the chairman of the NIGC; The tribe and company must provide to the chairman the names, addresses, and other pertinent background information on each person or entity having a direct financial interest in, or management responsibility for, such contract.

Reservation Land Tribes are permitted to buy land and place it in trust, thereby making the land part of the reservation. Exceptions to this date are: 1 Such lands are located within or contiguous to the boundaries of the reservation as of October 17, , 2 the Indian tribe had no reservation on October 17, , 3 such lands are in Oklahoma and are located within the boundaries of the Indian tribes former reservation, 4 such lands are contiguous to other land held in trust or restricted status by the United States for the Indian tribe in Oklahoma, or 5 such lands are located in a state other than Oklahoma and are within the Indian tribes last recognized reservation within the state.

Number of tribal governmental gaming operations: several tribes operate more than one facility. Many tribes operate gaming facilities primarily to generate employment. LAND IGRA requires that land taken into trust status must 1 benefit the tribe, 2 not be detrimental to the surrounding community, and 3 be approved by the state governor. Only 23 total land-into-trust acquisitions since for gaming purposes.

Only 3 off-reservation land-into-trust acquisitions since only 78 total acres. Tribal government services, economic and community development, general tribal welfare, charitable donations, and any requirements for aid to local governments must be provided for before a tribe can file for a Revenue Allocation Plan. The Secretary of the Interior must approve any per capita payments as part of a Revenue Allocation Plan.

Only about one-fourth of tribes engaged in gaming distribute per capita payments to tribal members 73 tribes. Tribal members receiving per capita payments pay federal income tax on these payments. Federal law makes it a crime punishable by up to ten years in prison to steal, cheat, or embezzle from an Indian gaming operation, and that law is enforced by FBI 18 USC This gross win tax was in addition to the table tax already in place.

The governor, E. Carville, opposed the tax and attached the following note to the bill: Senate Bill imposes on the gambling business a type of tax which the State of Nevada has avoided in the past as a matter of policy. It has been strenuously argued that the gambling business is in an entirely different category from what we may, for the mere sake of differentiation, term legitimate business. I feel, however, that with the State making this departure from its fixed policy, the effort will be made to extend the imposition of this type of taxation, and that the wiser course would have been to avoid this type of taxation, and obtain a just contribution from the gambling business by imposing a higher license fee.

Approximately two years of operation under Senate Bill No. Present guesses may be supplanted then by definite information, which will enable the Legislature to weigh the situation for taking intelligent action thereon. It is for these reasons that I have permitted Senate Bill No. Respectfully submitted, E.

Carville Governor. Chapter 3 Gaming Taxes The governor was certainly right about one thing:. A cash method of accounting is used, which means that the casino does not pay gaming taxes until the funds are collected. The tax is calculated as follows: preceding months gross gaming win minus any credit issued during the month that is still outstanding at months end; plus any previously issued credit that is collected during the month; equals the gross gaming win figure on which the tax is assessed.

Once the gross gaming win is calculated, the licensee pays taxes at the following rates: 3. One thing that premium players generally have in common is that they play on credit. Interestingly, the state of Nevada requires the payment of taxes not at the time the credit is extended, but at the time the credit is repaid by the player.

Repayment of credit for premium players may not occur for an extended period of time because of the large dollar amounts involved, which results in a deferral of the associated gaming tax. Often casinos find it necessary to settle a marker for an amount less than the face value. When a settlement occurs, NRS Credit instruments are often settled to: 1. Induce partial payment 2. Compromise a dispute 3.

Retain a patrons business for the future Frequently, in todays competitive market, an agreement is reached between the casino and a premium player to discount the face amount of any subsequent credit instruments to induce timely payment. If the player wins, he is paid the actual dollar amount of the winnings. Regardless of how much the player loses, the casino earns only the amount of the theoretical win. Any amount won by the casino over and above this theoretical win amount is only held in escrow by the casino.

NRS These circumstances include: failing to obtain the players signature or other written acknowledgment of the debt; failing to obtain the players address; failing to provide evidence that a reasonable effort was made to collect the debt; failing to provide evidence that the casino checked the players credit history prior to extending credit; and requesting that the unpaid balance not be confirmed at the time of an audit by the Gaming Control Board.

The Statute also provides certain exemptions related to slot machines, such as the cost of personal property distributed to a player as the result of a winning wager. A casino in Nevada can afford to be more daring in issuing credit since taxes are not generally payable on any uncollected amounts.

In New Jersey, the casino must still pay a large amount of the tax even if none of the outstanding credit is collected. Consequently, bad credit issuance decisions result in a substantial cost as far as the gaming tax is concerned. One of its primary objectives was to increase assurance that casino licensees were properly paying the required amount of gaming taxes. Regulation 6 requires each nonrestricted licensee to maintain detailed records pertaining to any revenue subject to gaming taxes or fees for a period of at least five years.

Failure by a casino licensee to maintain records as required may be determined by the chairman to be following an unsuitable method of operation. In a situation where records supporting taxable gaming revenue cannot be evidenced by the licensee, the Gaming Control Board may use other means to determine the amount of tax that should have been paid.

Regulation 6 also requires each casino licensee to establish administrative and accounting procedures providing for control over the internal. Chapter 3 Gaming Taxes fiscal affairs of the licensee. The procedures must be designed in a manner to reasonably ensure the following: 1. Assets are safeguarded. Financial records are accurate and reliable. Transactions are properly authorized by management.

Transactions are properly recorded to facilitate reporting of gaming revenue and taxes, and to maintain accountability of assets. Access to assets is through specific authorization by management. Asset accountability is periodically compared with actual assets and discrepancies are investigated. Adequate segregation of functions, responsibilities, and duties exists. The casino licensee is required by Regulation 6 to submit a written system of internal controls that describe the administrative and accounting procedures established by the licensee.

The written system of internal controls the system is lengthy and covers every department subject to gaming or entertainment tax. The document must address: administrative and accounting procedures; duties and responsibilities of personnel, organization, and structure; physical safeguards and controls and detailed operating procedures as they relate to the gaming areas. The chief financial officer and chief executive officer or licensed owner must submit a signed letter attesting to the system's compliance with the requirements of Regulation 6.

The MICS established specific control procedures that were required to be in place within the operation of each nonrestricted licensee. MICS were established for the following areas: table games; slots; bingo; keno computerized ; race and sports book; card games; cage and credit; entertainment; internal audit; and currency transaction reporting.

Alternative procedures that provide adequate control may be approved by the chairman based on a written request for a variance by the licensee. Otherwise, the licensee is expected to comply with the MICS. The licensee is required, on an annual basis, to have an independent accountant perform a comparison of the system submitted by the licensee to the MICS and to issue a report that identifies any procedures the accountant believes do not satisfy the MICS or any variations from the MICS granted by the chairman.

The report must also include responses from licensee management addressing any items of apparent noncompliance noted. As part of this revision, MICS were established for electronic data processing. In Nevada, the licensee has broad latitude in creating the internal control system that best suits the operation, whereas in New Jersey there is little flexibility in this process. Table 3. Nevada Each casino presents its system of internal controls to the Board.

Each system is evaluated, individually, against a set of basic minimum standards of operation and control. If these minimum standards are met, the casino is allowed to operate using its own methods and style of internal controls. Even though the basic minimum standards are the same, each Nevada casino may have a different way of operating.

New Jersey All systems of internal control are prescribed by statute and leave little room for innovation or changes. The experience and organization of the management team have a direct impact on the profitability of the casino operation. The mission of this chapter is to present and discuss the organizational structure of a typical casino and hotel along with descriptions of the responsibilities of a number of the key positions within the operation.

The chapter also provides a discussion of how to determine the number of employees needed to staff these key positions. Although every department and position is equally important to the success of the organization, only the positions within the casino department or those that are integral to the day-to-day operations are detailed.

At the bottom of the chart are the front-line employees, including dealers, cage cashiers, and change attendants. Toward the top of the chart are the management positions, including the games manager, the director of casino marketing, and the vice president of casino operations.

As employees move up within the organizational structure, the skills necessary to perform the job functions change. Front-line employees need technical skills to fulfill their position responsibilities, whereas employees at the top of the chart require fewer technical skills and more management skills. The management pyramid Fig. Variations based on the size of the operation, as well as the number and type of games offered, are common.

The reporting relationships and the assignment of responsibilities may also vary, depending on a number of variables, ranging from the skills and experience of the particular individuals. These variations are too numerous to be addressed in this chapter. The typical organization starts with the president and branches out, based on functional responsibilities.

The departments are divided along functional lines to provide for specialization as well as separation of responsibilities for accountability and control. The vice presidents of security, human resources, and finance all perform responsibilities that require them to operate independently of the operating department heads. For example, it would not be in the best interest of the operation for the director of surveillance, who is responsible for monitoring activity within the casino, to report directly to the vice president of casino operations.

Although at first glance there might appear to be some benefits to aligning the. The director of surveillance and his or her staff are a key part of the protection of the gaming operation and its assets, and any impairment of these responsibilities has a direct impact on the success of the operation. Generally, the vice president of finance reports to the president directly.

Depending on the ownership structure of the casino, the vice president of finance may instead have a direct reporting relationship to a representative of the owners. The vice president of finance is a key position in any casino organization, since the responsibilities of this position include establishing and tracking performance against budgetary guidelines, auditing the results of operations, regulatory compliance, and, in most casinos, overseeing the cage, credit, and collection functions.

This individual is not only a check and balance on the other operating departments, but is also responsible for safeguarding the assets, including the cash maintained for the day-to-day operation of the casino. The following are brief position descriptions for many of the key positions indicated in the organizational chart presented Fig.

The re-. Ultimately, all personnel report to the president. The person in this position reports to representatives of the owners. Vice President of FinanceResponsible for all financial activities for the operation. Direct reports normally include accounting, cage, credit, collections, information systems IS , and purchasing. Vice President of Casino OperationsResponsible for the overall operation of the casino, including slots, table games, and other gaming operations such as keno, race and sports, and poker.

Gaming and gaming compliance are two critical areas of responsibility for this individual. Vice President of Human ResourcesResponsible for employment, compensation, benefits, labor relations, training, and workers compensation functions, as well as compliance with applicable federal, state, and local requirements pertaining to these areas. Vice President of SecurityResponsible for surveillance, security, investigations, safety, and risk management, which includes handling insurance issues and guest loss complaints.

The following are brief descriptions for many of the key positions indicated in the organizational chart presented Fig. Supervises the shift managers. Shift ManagerResponsible for the operation of table games and the associated personnel during a particular shift.

Supervises the pit managers and all other table games personnel during the shift. Pit ManagerResponsible for overseeing the operation of the table games in a designated pit. Supervises the floorpersons and dealers within the pit and is also responsible for customer relations and games protection. FloorpersonResponsible for supervising the operation of a group of table games within a pit.

Supervises the dealers at the assigned tables. Also responsible for compliance with house rules and rating player action. DealerResponsible for the operation of a given table game. Dealers must comply with house rules for the conduct of the particular game. Pit ClerkCompletes pit transactions such as fills, credits, and markers through the use of the casino computer system or manually.

This position may report to either cage or casino supervisory personnel. Slots Slot ManagerResponsible for the operation of the slot department, including selection of machines and determination of floor configura-. Chapter 4 Casino Management tion, as well as machine maintenance and operation. Supervises the shift managers and head slot mechanic. Shift Manager Slots Oversees the operation of the slot department, including all personnel during a particular shift.

Responsibilities include customer relations and verification of large jackpot payouts. Head Slot MechanicResponsible for the maintenance and repair of all slot machines. Also maintains records pertaining to all slot machines, including location, par sheets, and any changes to the machine.

Supervises and trains all of the slot mechanics. FloorpersonResponsible for participating in the verification and conduct of jackpot payout and hopper fill transactions. Supervises change attendants and booth cashiers. Change attendantsPerform customer service transactions, including making change. Also responsible for an assigned bank. Booth cashiersResponsible for completing jackpot payout and hopper fill transactions. Also responsible for making change and redeeming coins for slot customers.

Casino Marketing Director of Casino MarketingResponsible for all aspects of marketing the casino, including developing and maintaining a database of customers. Also responsible for designing and implementing programs to attract new and repeat customer visits. Oversees operation of the slot club, casino hosts, branch offices, tournaments, and special events. HostsResponsible for identifying and attracting new casino customers, as well as servicing the needs of the existing customer base.

Other Casino Departments Keno ManagerResponsible for the operation of the keno department including staffing, customer relations, game integrity, compliance with gaming regulations, and financial performance. Keno Shift ManagerResponsible for the operation of the keno game during a particular shift.

Involved in verifying payouts on winning tickets. Keno Writer and RunnerProvides service to customers by accepting wagers and handling payouts on winning tickets. Writers are based behind the keno counter, whereas runners go to where customers may be, such as restaurants and lounges. Poker ManagerResponsible for the operation of the poker department, including staffing, customer relations, game integrity, compliance with gaming regulations, and financial performance.

Poker Shift ManagerResponsible for the operation of the poker games during a particular shift. May perform as the poker cashier as well as conducting tournament activities. Poker DealerResponsible for the operation of a given poker table. Director of Race and SportsResponsible for the operation of the race and sports department, including staffing, customer relations, game integrity, compliance with gaming regulations, and financial performance. Race and Sports Shift ManagerResponsible for the operation of the race and sports book during a particular shift.

Race and sports shift managers are responsible for administrative functions relevant to updating event information in the computer system as well as verifying payouts on winning wagers. Race and Sports Writer Mutuel Clerk and CashierProvide service to customers by accepting wagers and handling payouts on winning tickets. Security and Surveillance Security OfficerResponsible for protecting the assets of the casino.

Participates in casino transactions, including table fills and credits, and may participate in slot transactions, including jackpot payouts and hopper fills. Observes card and dice transfers and maintains security over the drop and count process. Controls access to keys permitting access to sensitive and restricted areas. Director of SurveillanceResponsible for the operation of the surveillance department, including staffing, games and guest protection, communicating with regulatory authorities, asset protection, and monitoring compliance with rules surrounding game conduct house rules , gaming regulations, and internal control procedures.

Surveillance OfficerObserves, records, and reports suspicious or improper activities within the casino operation. Focus is on compliance with gaming regulations, house rules, internal control procedures, and asset protection. It is common for computer systems to be used to record revenue in gaming areas such as slots and keno, as well as other casino hotel areas including hotel operations front desk, room reservations, etc. Such systems are also heavily relied upon in the back of the house for operations including accounting, payroll, and purchasing.

Understanding these systems and how they are integrated to accumulate and report data is important to successfully managing the casino hotel operation. Figure 4. Examples of Information in System Room revenue, room rates, room configurations, occupancy, reservations, room rates, housekeeping status, hotel guests.

Table games revenues, casino customer play, table games statistics, casino customer complimentaries, casino event data, casino marker balances and history. Slot Systems Slot operations and marketing can be one system or two separate interfaced systems. Employee time, employee database Inventory items purchased and consumed, restaurant items, purchasing statistics. Hotel customer transaction history and account balances Financial history.

STAFFING Proper staffing levels within the casino contribute directly to the adequacy of customer service and the profitability of the casino operation. Management must be able to forecast the number of anticipated customers who will visit the casino during different periods and provide staffing levels that will be appropriate to service these customers.

Overstaffing or understaffing may have negative consequences for the bottom line of the casino. Overstaffing may result in the casinos incurring labor costs that are unnecessary to meet actual customer demand. Understaffing may result in loss of revenue due to customers leaving the casino because of inadequate service or unavailability of gaming positions at their desired game. Either of these conditions is undesirable for casino management.

The following discussion, using a hypothetical casino, provides a methodology for determining proper staffing levels based on the number of tables in operation during different days of the week. How many employees are needed to staff a casino under the following conditions: a.

Dealers will work 60 minutes at the table, followed by a minute break. Floorpersons will receive breaks totaling minutes out of each minute shift eight hours. Chapter 4 Casino Management In order to determine the number of employees required to staff the casino under these conditions, the casino manager would need to consider the following: 1.

The number of stations needed to be open for each day of the week must be determined. A station is defined as a position that must be staffed for the entire shift. In blackjack, there is one station per game. In craps, there are three stations: the stickman and two base dealers.

Relief dealers will be considered in the computations to follow. How many dealers are needed to keep the required number of stations open and still allow for minute breaks after every 60 minutes on duty? If the employee works 60 minutes on and 20 minutes off, the cycle is 80 minutes. The following indicates the number of employees needed in each gaming pit for Monday:. If the same method of calculation is applied to each day of the week, the following number of dealer shifts will be needed each week: Mon BJ Chapter 4 Casino Management e.

Each dealer will work only five of every seven days; therefore, the following numbers of dealers are needed on the payroll to meet the demands of the casino: BJ Dice Baccarat What about vacations? If only the numbers of dealers indicated above are provided, the casino will not be able to schedule the dealers time off for vacation.

To allow for vacation, the average vacation time per employee per year must be determined. If it is assumed each employee will receive a twoweek vacation each year, the employee will work 50 weeks out of every Using the same methodology as in number 2 above, the number of dealers needed when vacation is factored in is determined as follows: BJ Dice Baccarat To this point, the total number of dealers on payroll has been calculated so that each works: a.

Only five days out of every seven, and c. Receives a two-week vacation each year. The number of floorpersons on staff also needs to be determined. The number of floorpersons needed is calculated in the same manner as for dealers; however, eight hours is considered the cycle for a shift. If floorpersons are scheduled for a one-hour break and two 20minute breaks each shift, then each employee will work out of every minutes eight hours in a shift multiplied by 60 minutes.

Using the same method demonstrated with the dealers, the number of floorperson shifts needed each week can be calculated as follows: Mon Days Swing Grave If each employee is only to work five days of every seven, how many floorpersons are needed on the payroll? Days Swing Grave Allowing for a two-week vacation for each, how many floorpersons are necessary? If Number of Tables Open Varies Greatly from Day to Day: The formulas presented may not yield enough employees to staff the busiest day; therefore, the minimum number of employees is determined on the basis of the number required to staff the casino on the busiest day.

The formula indicates In practice, few casinos have only three dealer shifts per day. Commonly, there may be between four and six different dealer starting times. Table 4. Each dealer works 60 minutes on and 20 minutes off. The opening of the tables should approximate the player demand.

In this example, the casino has as few as 12 tables open in the morning, when demand is low, and 40 games open in the afternoon. Using the Tables Open line, determine: 1 why the shifts started when they did and 2 why seven different shifts were needed. Remember, each dealer is to work eight hours.

Try to fill in the blank areas. Deemed financial institutions, every casino within the jurisdiction of the U. In addition to stopping money laundering, it was hoped that the required reporting would provide the Internal Revenue Service with an increased means of identifying tax evaders. Before the inclusion of casinos, financial institutions were limited to the following: 1.

Banks Brokers or dealers in securities Currency dealers or exchangers Issuers, sellers, or redeemers of travelers checks or money orders Licensed transmitters of funds Telegraph companies. Multiple currency trans-. The classification of casinos as financial institutions was, to say the least, an unwelcome change. Operators believed that the new requirements would discourage or severely curtail the extremely profitable high-end segment high rollers of the customer base.

The casino industry initially argued strongly against the change, but it became evident after months of dialogue that nothing could be done about the impending reclassification. Casinos would soon report under Title Nevadas regulators believed that the need for individual casinos to report directly to the Treasury was an intrusion by the federal government that should be avoided if possible.

The regulators were successful in persuading the Secretary of the Treasury to allow each jurisdiction, if it so desired, to develop its own method of implementing the controls and reporting procedures necessary to comply with Title 31 requirements. The final decision by the Department of the Treasury gave each gaming jurisdiction two options: 1. Obtain an exemption from direct reporting to the Department of the Treasury by developing its own system of implementing, and monitoring for compliance, the reporting requirements; or 2.

Report directly to the Department of the Treasury subject to Title 31 of the Bank Secrecy Act, with the Department of Treasury responsible for monitoring compliance. Nevadas regulators, with the support of Nevadas gaming industry, decided to develop their own regulatory system for monitoring compliance, which was to become known as Regulation 6A.

Before it was implemented, Regulation 6A had to be reviewed and accepted by officials from the Department of the Treasury. After months of negotiations, Nevadas self-regulation model was accepted. Even though Regulation 6A is administered by Nevadas gaming regulators, casinos are still required to submit all reports to the Internal Revenue Service.

Both Atlantic City and Puerto Rico opted for maintaining compliance with the specific requirements of Title In subsequent years, casinos in all other jurisdiction, including Illinois, Indiana, Iowa, Michigan, and Mississippi, along with the Native American casinos, have commenced operations under the currency transaction reporting requirements of Title Nevadas system is designed to prevent certain methods of laundering money. This does not include exchanges of chips or tokens for cash, but does include exchanges of foreign currency for U.

The one exception is the issuance of a check for verified winnings. For example, a patron winning a large slot jackpot may receive his winnings by check. Issuing a check or wire transfer for winnings to a third party is prohibited. The check must be issued in the name of the winning patron.

This form is comparable to the form used to report currency transactions under Title 31 Form [formerly Form ]see Fig. The MTL is used in all gaming areas and the casino cage. The date and time of the transaction 2. The amount of the transaction.

Chapter 5 Currency Reporting 3. The transaction type The patrons name The patrons permanent address The method used to verify the patrons identity and residence and a description of the document used, including number e. Under Regulation 6A. Transactions in which cash is received from a customer: a. Losing cash wager placed at a table game b.

A cash wager placed at another gaming area such as keno, and the race and sports book. Chip or token purchase d. Marker payment i. Front money deposit i. Transactions in which cash is paid out to a customer: a. Redemption of casino chips b. Payment of a winning wager such as a winning keno, race and sports book, or bingo ticket. Withdrawal of a front money deposit d. Customer cashes a check at the casino cage or makes a withdrawal against a consumer credit card in cash at the cage e.

Cashing out points accumulated by the customer through the casinos slot club f. Customer receives cash from a wire transfer received by the casino g. Payment of winnings received through participation in a tournament such as a slot or poker tournament. Other payments made to a customer, such as a marketing incentive or reimbursement for travel expenses. Transactions that require the filing of a CTRC-N must have cash on one side of the transaction, meaning the casino must be either receiving.

If the latter case, then it must be designated on the CTRC-N that the report was filed as a result of multiple transactions. In no case is a report ever filed as a result of combining cash-in transactions with cash-out transactions. This rule applies to reports filed under both Regulation 6A and Title In this case, the casino is not allowed to cash out the chips and may also be required to report the transaction to the Nevada Gaming Control Board. If the customer refuses to provide the information necessary to complete the report, then the casino must bar the customer from all gaming activities, in all gaming areas, until the information is subsequently provided.

The customer is not only barred from this casino, but from any other casinos owned and operated i. The customer may be removed from the barred list by subsequently providing the required information. These logs are required in all departments responsible for the preparation of Currency Transaction Reports. The MTL Fig.

A description and, if known, the name of the patron The table number, if the transaction occurred in the pit The time, date, type, and amount Signature of the casino or cage personnel recording the entry. These logs are maintained for a hour period, with a predetermined cutoff time that is selected by the individual casino. After the end of the hour period, the MTLs for each gaming area and the casino cage are turned in to the accounting department for review and storage.

Every 24 hours, each department initiates a new MTL, and it is. This means that only transactions of the same type, such as chip purchases, are aggregated together. The casino would not aggregate a chip purchase with a front money deposit or a marker payment.

The exception to this rule occurs when a single visit occurs. The Regulation defines a single visit as one continuous appearance at a given location uninterrupted by a patrons physical absence from that given location during a designated twenty-four-hour period. Under what is known as the single visit rule, the casino must aggregate all cash transactions conducted by a patron, going in the same direction all cash-ins with other cash-ins, but not with cash-out transactions , while continuously at a single location.

Under normal circumstances when the single visit rule is not in effect, a CTRC-N would not be required for the transactions described in the example. The single visit rule basically represents the application of Title 31 rules that would be followed in casinos outside Nevada for aggregation of cash transactions. Front Money and Safekeeping Deposits The Regulation provides for unique ways of handling player deposits for front money or safekeeping.

Each casino has two options when handling either type of deposit: 1. Physically segregate the cash deposited in a designated location and return the same cash to the patron, or 2. Record the number of bills in each denomination of the cash deposit. When the deposit is returned to the player, it is returned in the same denominations and number of bills of each denomination as in the original deposit.

What If the Patron Refuses to Comply? Since casino owners are forced by the Regulation to obtain the necessary information, the casino must bar the patron from gaming as described previously until he complies. Each gaming area is required to maintain information relevant to any such patron. Many casinos have chosen to utilize a barred patron log, which lists the patrons name, if known, and description.

All personnel in gaming areas and security are expected to routinely review this log. Benefit of Choosing Hour Window The Regulation provides that each casino can determine when its hour day begins and ends. This has proven extremely beneficial in minimizing the effect on individual players.

For instance, if the casinos hour period begins at midnight, one night for the patron could overlap two nights for reporting purposes. When the regulation was first enacted, many casinos chose early morning as the hour cut-off, but it did not take long for them to change to a time that more closely divided the patrons period of play. Transactions such as chip purchases, money play losses losing cash wagers , and marker payments are all considered to be separate transactions.

Regulation 6A and Title 31 were reluctantly accepted by both management and players. At this point, the player may be in no mood to comply with the casinos request. Since , the players have grown accustomed to Regulation 6A and, in the process, many have developed their own methods to avoid reporting.

It is also important to note that the player need not be bothered if the casino has the necessary information on file. Many casinos photocopy a. Once a positive player identification is made for a report, subsequent reports can be made based on the prior identification as long as the player is known to the casino employee handling the transaction. It is not necessary to inform the player that the report is being prepared. It is only necessary to inform the patron if the casino does not know who the player is and, consequently, must see identification.

When Regulation 6A was first implemented, many casinos felt obligated to notify the player that a report was being prepared. Most casinos now simply prepare the report if the information is available. Nevadas Regulation 6A provided a uniform method of complying with the regulations of the Department of the Treasury. Every casino knew what was expected of it and how to handle most situations. In contrast, Atlantic City and Puerto Rico had only a single-paragraph explanation contained in Title 31 to provide them with guidance on how to maintain compliance.

Since , each casino in these jurisdictions has developed a system it believes provides for compliance with Title One additional difference between the jurisdictions is that betting of cash and pit marker redemptions are prohibited by regulation in both Atlantic City and Puerto Rico. Monitoring Compliance with Regulation 6A Recognizing the need for a system of consistent and recurring compliance monitoring procedures, the Nevada Gaming Control Board issued Minimum Internal Control Standards MICS for Currency Transaction Reporting, which require the performance of procedures by both internal audit departments and independent accountants.

The MICS specify that internal audit personnel for the casino review established procedures in all casino departments subject to Regulation 6A by interviewing appropriate personnel in these areas on a quarterly basis. Testing of all types of documentation prepared pursuant to Regulation 6A is also required to be completed by internal audit personnel on at least an annual basis with the documentation tested being selected from each quarter.

An additional requirement, which serves to highlight the importance of Regulation 6A compliance for both the Nevada regulators and the Department of the Treasury, is the one asking that all exceptions discovered by the internal auditors be documented and forwarded to management, which is defined to include owners, the board of directors, and the department heads responsible for the exceptions.

Chapter 5 Currency Reporting The MICS have similar requirements for independent accountants in conjunction with the preparation of an annual report, which is required per Regulation 6A. The report must address the casinos level of compliance during the year and all instances of noncompliance with Regulation 6A that were either discovered as a result of procedures they perform or that were brought to their attention, regardless of the severity of the noncompliance.

The MICS procedures include four hours of unannounced observations per quarter of the casino cage, pit, and sports book areas, walk-throughs, testing of documentation, and review of training programs established by the casinos, in order to periodically communicate to casino personnel the requirements of Regulation 6A.

The MICS indicate that the independent accountant procedures may be performed instead by qualified internal audit personnel as long as the independent accountants review the work of the internal auditors. Depending on the casino, having the procedures performed by the internal auditors may provide a cost-effective alternative. These monitoring procedures have helped the casinos ensure the effectiveness of their compliance systems by providing frequent feedback to management and, at the same time, have provided independent assurance to the Nevada regulators that casinos are maintaining adequate compliance with Regulation 6A.

In these jurisdictions cash-in and cash-out transactions are aggregated separately for the purpose of reporting. Examples of cash-in include front money or safekeeping deposits as well as chip purchases in the pit. Atlantic Citys casinos are required to use their casino computer systems for the purpose of aggregating pit buy-ins and casino cage transactions.

Most casino systems will provide the ability to generate a daily report that identifies any patrons whose aggregated cash transactions have exceeded the reporting threshold for which a report is required to be prepared and submitted by the casino. This is an important reading material to new casino managers and executives. It offers information on different jargons related to casino industry. This book helps casino managers widen their understanding on business terms that are commonly used in casino operations.

By learning the jargons that are normally used in casinos, casino owners and managers can communicate well with their employees as well as clients. The book also discusses cheating in casinos to help executives detect cheats in their establishments. These reading materials are highly recommended to new casino executives. Some of the topics that the books cover are basic so junior casino managers can easily understand them.

The books also offer suggestions on how casino managers can improve the finances of their casinos. Reading these books may take most of the time of casino executives but the matters that they will learn from these materials are definitely worth everything. Hence, to casino executives who have interest in broadening their knowledge on casino operations, they should consider reading these casino management books.

Highest Ranked Casinos. Instructional Books on Successful Management of Casino Operations To improve their bankroll, many casino players use gambling books as references when they engage in money games because these materials contain relevant information like money management skills. Rudd's "Introduction to Casino and Gaming Operations" Many readers who review this book agree that it is engaging and easy to read.

Kathryn Hashimoto and George G.