controls at bellagio
Focus on three key roles at mainly three levels of authority in the casino. How would you characterize the "control strategy" (e.g., tight vs. loose) used over each of these roles?
A. Blackjack dealers (tight controls)
Dealers are highly visible which does not allow for fraudulent activity. This in itself is a tight control but other tight controls in place include: table assignments, closed circuit television (CCT) observation, 2 dealers at the table, and other employees on the floor keeping watch. Standardization is also part of the tight controls for blackjack dealers. They must wear uniforms and perform certain duties, such as accepting tips and doing cash and chip exchanges, exactly as procedure states. All dealers must be licensed and the Bellagio does background checks before hiring. Financial and accounting analyses ensure there are no statistical anomalies associated with any one dealer or shift.
CCT is one of the best controls the Bellagio has. Employees do not always follow controls put in place but when they know they are being watched they have no other option and the temptation to steal lessens. CCT cameras can zoom in on the tables close enough to monitor all cards being played and bets being made. (Mills & Yamamura, 1996)
B. Pit bosses (tight controls)
Pit boss controls aren’t as tight as dealers but they are always on the floor watching dealers and handling customers so they are still visible. Part of their job is to promote and market the casino on the floor. Some of the tight controls for bosses are the same as dealers and include: CCT observation, licensure, background checks, thorough documentation whenever they interact with finances such as customer perks or chip counts, and bonuses based on profitability.
Documentation is not only important for comparison and accountability; it is an audit trail to ensure nothing fraudulent is occurring. “The objective behind documentation testing is to prove that cash coming
A. Blackjack dealers (tight controls)
Dealers are highly visible which does not allow for fraudulent activity. This in itself is a tight control but other tight controls in place include: table assignments, closed circuit television (CCT) observation, 2 dealers at the table, and other employees on the floor keeping watch. Standardization is also part of the tight controls for blackjack dealers. They must wear uniforms and perform certain duties, such as accepting tips and doing cash and chip exchanges, exactly as procedure states. All dealers must be licensed and the Bellagio does background checks before hiring. Financial and accounting analyses ensure there are no statistical anomalies associated with any one dealer or shift.
CCT is one of the best controls the Bellagio has. Employees do not always follow controls put in place but when they know they are being watched they have no other option and the temptation to steal lessens. CCT cameras can zoom in on the tables close enough to monitor all cards being played and bets being made. (Mills & Yamamura, 1996)
B. Pit bosses (tight controls)
Pit boss controls aren’t as tight as dealers but they are always on the floor watching dealers and handling customers so they are still visible. Part of their job is to promote and market the casino on the floor. Some of the tight controls for bosses are the same as dealers and include: CCT observation, licensure, background checks, thorough documentation whenever they interact with finances such as customer perks or chip counts, and bonuses based on profitability.
Documentation is not only important for comparison and accountability; it is an audit trail to ensure nothing fraudulent is occurring. “The objective behind documentation testing is to prove that cash coming
References: Merchant, K. & Van der Stede, W. (3rd Ed.). (2007). Management control systems: performance measurement, evaluation and incentives. Prentice Hall. Upper Saddle River, NJ. Mills, J.R., & Yamamura, J.H. (1996). Casinos and controls. Internal Auditor, 5(3):54-58. Retrieved October 18, 2013 from ebscohost.com. Rudloff, R.W., (1999). Casino fraud. Internal Auditor, 56(3): 44-49. Retrieved October 18, 2013 from ebscohost.com.