CASINO OPERATIONS MANAGEMENT PDF

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Casino Operations Management. 2ND Edition - Ebook download as PDF File . pdf), Text File .txt) or read book online. Casino Operations Management is a suite of software applications designed casino environment aimed at optimizing the processes that take place on the. CASINO OPERATIONS MANAGEMENT SECOND EDITION Jim Kilby Jim Fox Anthony F. Lucas John Wiley & Sons, Inc. pawnfacumapbma.cf 1/8/04 PM Page ii pawnfacumapbma.cf .


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of APUS. 1. Department of Management. HOSP Casino Operations Management. 3 Credit Hours. 8 weeks. Prerequisite(s): HOSP Table of Contents. Casino Operations Management - [Free] Casino Operations Casino Control Act can be viewed here in two formats, as a PDF or as a Word. Description. Complete guidance to the ins and outs of gaming operations. Management personnel need a thorough understanding of the business side of the.

The glossary at the end of the text provides an explanation of many of the key terms. Will Dunn. Golden Nugget. Jack Pappas. Casino MonteLago.. He would also like to thank his parents for their lifelong encouragement and support. City College of New York.

Executive Casino Host. Vice President of Table Games. Guy Wolcott. Palms Casino. Roy Brennan. Joie Murphy. Chandler Police Department. Vice President Marketing. Marketing Communications Manager. Product Manager. Ellen Ma. Palace Station. Director of Planning and Analysis. Tom Newman. Green Valley High School. George Stamos. Executive Director. Melody Larsen.. David Chan. Wayne Smith. In addition. California Nations Indian Gaming Association.

Jocelina Santos. The gaming industry is one of excitement as well as one of risk. It is their efforts and commitment to research that allow meaningful articles and textbooks to be written. Jim Kilby would like to thank the following individuals for their inspiration. The authors would also like to give a special thanks to those who helped make this second edition possible: Marcus E.

Terry Ridgeway. Jim and Raelene Palmer for their friendship. Brad Goldberg. To this day. As a result of this delay in the implementation of the law. The bill was resurrected in It is interesting to note that the law did not become effective until late in As innocent as this latest modification appeared.

In The bill originally passed both houses in Nevada had a reputation of providing activities considered illegal or immoral elsewhere in the United States. The legaliza- 1. Four of these bills enacted laws that either restricted or prohibited gambling altogether. The slot machines could pay off in cigars.

In the late s and early s. Casino gambling in Nevada lasted until Regardless of the laws in effect. During the next legislative session in With the impending construction of the Hoover Dam and the thousands of federal workers who would be required for the project. These two events provided the impetus for the introduction and subsequent passage of Assembly Bill Legalized gambling would enhance business in general.

Phil Tobin and the supporters of his bill felt that passage of the bill would accomplish three things: How could the federal government intervene if gambling was legal?

Supporters of the bill believed the only way to prevent federal intervention in these illegal activities was to legalize gambling. During the same legislative session. Legalized gambling would provide the state with much-needed revenue through gaming taxes. On March Governor Fred Balzar signed historic Assembly Bill 98 into law.

Congress only three months following the crash. The subsequent depression proved to be very hard on the state and. Assembly Bill 98 legalized the following games: The first to occur was the stock market crash of October Cheating and operating a casino without a license were forbidden. The Bull Pen Casino provided the game boss with one of the few benefits of receiving a long prison sentence.

The tax was determined by the number of devices and not the amount of the casino win. Any operator found guilty of cheating was forced to forfeit his license for one year. After obtaining approval from the board. The tax revenues were to be split. This omission was rectified eight days later when the legislature empowered local authorities to regulate gaming or prohibit it entirely Vallen. As unlikely as this sounds.

Since the county received most of the tax revenue.

The original version of the bill failed to provide for any means of regulation. Unfortunately for the. With the exception of this limited form of taxation. In order to operate a game. There was even a window where an inmate could bet on any horse race in the country and another window for betting on sporting events Soares.

The Meadows Supper Club. California state officials became outraged by his operation and in The Cornero brothers claimed that they had built the Meadows with the understanding that the city would give them a monopoly on prostitution. Only 20 feet wide at first. The hotel burned to the ground in after firemen refused to fight the fire because the Club was outside the city limits Las Vegas Review Journal.

The casino. After leaving Las Vegas. Every week. No expense was spared in building the most luxurious casino in Nevada. The Club eventually went bankrupt in and was sold within a year to a builder from California Nevadan Magazine. Tony Cornero operated a gambling ship anchored three miles off the shore of Santa Monica.

Unfortunately for Cornero. During the prohibition years. This was to change when in Raymond Smith and his son Harold came to Nevada. A mouse was released from a hole in the center of the wheel and the winning number was determined by the hole to which the mouse ran.

Hull could not help noticing the large number of cars that passed him while he was waiting for a mechanic to arrive. He was also the first to introduce mouse roulette. At one point. The amendment legalizing wagering on these events did not come until ten years later. Pappy Smith was also the first casino operator to hire women dealers. He was a great visionary and realized that proper marketing could lead to substantial profits. Just two years later. Harrah was the first to introduce corporate management philosophies to the gaming industry.

Among these was his innovation of placing the casino directly adjacent to the street. Bill Harrah. Legend has it that on a hot summer day in During this same period. At the time of his death in the mids. Clark County. Bugsy 5 traordinary promoter. On October During the initial opening period. Brian Donlevy. But since the rooms were not yet complete.

William Holden. Trans-America wire service. Ava Gardner. Lucille Ball. Once familiar with Las Vegas gambling. The hotel was named after Hollywood starlet Virginia Hill.

In spite of all the hoopla. Bugsy and his gang gained a foothold in the legal casinos of Las Vegas Vallen. The Flamingo was crowded with customers on opening night. December With monopoly control of the wire service. Unfortunately for Bugsy. Two nights later. To satisfy this perceived gap in the market. Looking back. Convinced he was skimming casino proceeds. The developer of record was the Nevada Projects Corporation.

On Thursday. The casino was reopened on March George Raft. Xavier Cugat. The opening did make the newspaper. Bugsy initially bought into and subsequently sold the El Cortez. The download was not without some controversy. Howard Hughes 7 In retrospect. The 2. Within a period of a little more than one year. Howard Hughes was able to move swiftly through the licensing process and continue to expand his ownership in the gaming industry. After determining that the Department of Justice had no jurisdiction in the matter.

Before coming to Las Vegas. In September His entry into gambling legitimized the industry and gave it a much-needed perception of respectability. With the assistance of Governor Paul Laxalt. Department of Justice intervened when Hughes attempted to download the Stardust. In July Fearing dominance in the industry was detrimental to free competition.

He was a well-known and respected businessman. The act was made retroactive to July 1. The mega-resorts also feature large numbers of hotel rooms currently as many as 5. The act opened the door for other public corporations to move with greater ease into the gaming industry.

The Mirage. The building boom that began with Bugsy Siegel has continued with only slight interruptions. New York-New York. The last few years in Las Vegas have seen the construction of themed mega-resorts. Coney Island.

With public corporations. Other tourist attractions include the Eiffel Tower Paris. MGM Grand. The Corporate Gaming Act allowed publicly traded corporations to own casinos without requiring every single stockholder to be licensed.

These properties. Mandalay Bay. Prior to the passage of this act. Tourists visiting the Las Vegas Strip today can stay at the five-star Bellagio featuring a man-made lake. Wynn today is the mastermind behind Wynn Resort. Other projects under construction include Wynn Resort. 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.

The new mega-resort will include approximately 2. Wynn as one of the modern-day innovators in the gaming industry. Wynn is credited by many in the industry with transforming Las Vegas into a world-class resort destination.

These projects will further enhance the image of Las Vegas as a vacation destination. Wynn Resort should serve to further establish Mr. The proceeds from this sale helped to fund the construction of The Mirage. 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. 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.

Mohegan Sun is currently one of the largest casino resort destinations in the world. Kerzner turned his attention to international development. Paradise Island—themed resort. Sun International Hotels. 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.

Both of these properties opened in and represent prime examples of the imagination. One of Mr. In October With the completion in of the Lost City and its internationally acclaimed luxury hotel. Kerzner has gained international acclaim for his imaginatively designed. The property has a pirate theme. The ship battle is complete with actors. Treasure Island. In May Sol Kerzner was born August From to The Paradise Island properties. Kerzner opened the Mohegan Sun gaming resort in Connecticut to a crowd of The 1.

By the company was operating 30 luxury hotels with more than 5. Paradise Island. Entertainment at Atlantis also features a world-class casino. These covered a broad spectrum of city and resort establishment complexes.

Having acquired control of the hotel-casino interests of Southern Sun Hotels. Cheating and operating without a license were illegal. The licensing system which is in effect in the state has not resulted in excluding undesirables from the state. Anyone seeking a gaming license had to be approved by a local fivemember board made up of the sheriff.

Local gaming control and enforcement lasted until 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. Estes Kefauver In Once the tax on gross gaming win was established. Nevada Gaming Control Whether in Nevada.

Many of the licensed operators were either members of or had connections with organized crime. The organizational chart shown in Fig. This is accomplished by maintaining strict control over the financial practices of the licensee. To ensure that the industry is free from corruption and the involvement of organized crime. In Nevada. 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.

Atlantic City. After completing its investigation. To ensure that all taxes owed are properly paid. To ensure that gaming is conducted honestly.

To accomplish this. This is accomplished by preventing unsavory or unsuitable persons from having any direct or indirect involvement in gaming. The publicity of the hearings brought national prominence to Kefauver. This approach to licensing lasted until In testimony before the committee. The Board is made up of three members who are.

No more than three Commission members are from the same political party. In selecting the members of the Commission. None of the Commission members is actively engaged in or has a direct interest in gaming. Interestingly enough. History of Gaming Control in Nevada 15 Figure 2. The five members of the Commission are appointed by the governor to four-year terms. The third member must have full training and experience in the field of investigations. Each agent has police officer authority and routinely conducts undercover observations of gaming licensees.

One member must be a certified public accountant with five years of experience in general accounting. Investigative agents with the Board fall into either the background or financial category Vallen.

The Gaming Control Act dictates to the governor whom he cannot choose for the Commission and. Investigates player disputes. One distinct difference between the Board and the Commission is that the Board members are full-time rather than part-time.

The various departments of the Board are assigned to those members with the necessary functional skills. All agents hold accounting degrees. Audit The Audit Division is the largest division of the Board.

Reviews all existing and new work card permits. In completing the background investigation. The applicant bears the entire cost of the investigation. Individuals selected to be Board members must be proficient in certain areas of expertise. Inspects and approves gaming tokens. The chairman of the Board must have five years of sound administrative experience. Divisions of the Board Investigations When an individual submits an application for a gaming license. Board personnel will contact law enforcement agencies where the applicant has lived.

Most often. Reviews surveillance systems. Arrests anyone attempting to cheat the casino. Enforcement The Enforcement Division serves as the law enforcement arm of the Board. Every three years. Gaming Policy Committee The Gaming Policy Committee was established in to give the governor a voice in policymaking. The Audit Division also reviews and evaluates the internal control system of each licensee.

The Committee meets on an ad hoc basis at the request of the governor and has not been convened since History of Gaming Control in Nevada 17 Audit Division staff to determine whether the proper gaming and entertainment taxes were reported and whether compliance has been maintained with gaming regulations. The nine-member Committee is chaired by the governor. The exclusive purpose of the Committee is to discuss gaming policy.

Attorney General In addition to the divisions listed. The primary responsibility of the attorneys is to serve as legal counsel to the Board and the Commission. The expertise of the Committee members should yield sound advice concerning policy. Nevada gaming licenses are either restricted or nonrestricted. Anyone seeking a gaming license must first prepare an application and submit it to Applicant Services. Any of these rights can be summarily taken away by the Board and the Commission Goodwin.

Restricted If the applicant chooses to operate no more than 15 slots and no table or poker games. Approximately two weeks later. All companies. After the investigation. The application is submitted to the Board. If the Board unanimously recommends licensing or this vote is split.

At the end of their questioning. Two other types of gaming licenses qualify as nonrestricted: The applicant then prepays this estimated cost. Classifications of Nevada State Gaming Licenses The type of casino the applicant chooses to operate determines the type of license that is necessary. Once the application is prepared. As mentioned earlier. 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. The Board then makes a recommendation as to the suitability of the applicant.

In addition to the state license. The applicant has adequate business competence and experience for the role for which application is made. In the past. Whenever the state and local room requirements differ. Finding of Suitability. What the Commission Is Looking for in an Applicant Any approval by the Commission will not be granted unless the Commission is satisfied that: Any casino operation classified as nonrestricted in Reno must have at least hotel rooms before a local gaming license will be issued.

In all cases. Funding for the operation is adequate and from a suitable source. For example. If an applicant wishes to open a race book or sports pool only. The applicant is a person of good character.

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Local jurisdictions have their own requirements before issuing a license. Under current requirements. In Clark County. Key Employee Licensing. If the local room requirement is greater than the state requirement. That is. Regulation 3. The following classes of individuals are those most likely to be called forward for a finding of suitability: Twice each year.

In these cases. Any executive. The report includes the following categories of employees who are actively engaged in the administration or supervision of the casino operation: 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.

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. Any person who individually or in conjunction with a group formulates management policy As you can see. Any individuals who can enter into a contractual arrangement that is binding on the licensee and is reportable under Regulation 8.

This regulation shall not apply to the playing of or wagering on poker or panguingui.

All individuals with the authority to manage the following departments: Shall the Constitution be amended. Atlantic City Gaming 21 9. No officer. Key employees are restricted from gambling in the casinos where they work. Any individual who has been represented to the Board or Commission by the licensee as being important to the operation of the gaming establishment Work Permits A work permit of some form is required in most gaming jurisdictions.

When the Casino Control Act was first passed. As in Nevada. The Commission is composed of five members appointed by the governor to five-year terms.

Puerto Rico and Great Britain were visited to determine the best control model. In the year before the gambling referendum was presented to the voters. The legislators later decided that the workload and responsibility of the Commission was too great for part-time members. Atlantic City: After these different models of control were reviewed.

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.

The introduction of the gambling bill had as its main objective the restoration of Atlantic City. Playboy was not issued a permanent casino license. In this case. Reviews and audits of casino operations 3. Hefner was not willing to sell his interest in Playboy.

The investigation of all applicants for a gaming license. Prosecution of licensee violators before the Commission 5. Enforcement of the Casino Control Act and its regulations 4.

As the result of adverse background investigations. Atlantic City Gaming 23 and agents at all times during the operation of any casino. Once the governor decides not to run or is defeated. Approval for employee licensing requires only a simple majority. In New Jersey. Provisions for the continuous presence of Commission personnel represented a significant departure from the gaming control model employed by Nevada.

Gaming has long been a part of tribal culture. Many of the traditional games are still played today at Indian ceremonies and celebrations. In exchange for land. Three categories of employees must be licensed: Key License category 1.

The tribes have always believed that they have the right to conduct gaming on Indian lands. Licensing In addition to the companies. In California v. Before the Pilgrims set foot on Plymouth Rock. On the hotel side. Atlantic City offers only one type of gaming license. Key License Includes casino and hotel policymakers.

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Cabazon Gaming License category 2a. Gaming License Applies to those directly involved in the operation of the gambling: Nongaming License Applies to those who work in a casino but are not directly involved in the play of the games. North America was populated by hundreds of Indian tribes. The concept of owning land came with the European settlers.

National Indian Gaming Commission. Table 2. Regulatory control is vested exclusively in tribal governments. Each member is appointed to a three-year term and must pass a rigorous background investigation by the U. The Act specifically excludes slot machines and electronic facsimiles of any game of chance from the definition of Class II games. Games commonly played at casinos. Class II gaming also includes nonbanked card games.

The U. IGRA established three classes of games with specific controls for each: Before appointment. Tribal governments are responsible for regulating Class II gaming with Commission oversight. Attorney General. Tribes retain their authority to conduct.

The Act established the judicial framework that governs Indian gaming. Powers of the Commission a Budget approval.

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The NIGC shall have the power. Class III is often referred to as casino-style gaming. To promote tribal economic development. The Chairman must approve this ordinance. Annual audits are conducted by outside agencies. The ordinance must provide that: To provide the general welfare of the Indian tribe and its members.

Background investigations are conducted on primary management officials and key employees of the gaming enterprise and b. Net revenues from gaming are not to be used for purposes other than: There is a licensing system that ensures that: To help fund operations of local government agencies. Indian Gaming 29 8 May hold such hearings. Powers of the Chairman a The Chairman.

All contracts for supplies. Before a tribe can offer any Class II gaming. To donate to charitable organizations or e. The funding of the tribal government operations or programs. The construction and maintenance of the gaming facility and the operation of the gaming is conducted in a manner that protects the environment.

Include a means of licensing primary management officials and key employees of the gaming enterprise. That plan has been approved by the Secretary of the Interior. The compact will address: The form of gaming is permitted within the state where the Indian lands are located. The gaming is authorized by an ordinance or resolution that 2. The interests of minors and other legal incompetents entitled to receive payments are protected and preserved. The allocation of criminal and civil jurisdiction between the state and Indian tribe necessary for enforcement of such laws and regulations.

The disbursements are subject to federal taxation. 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. The assessment by the state of any monies in such amounts necessary to defray the cost of regulating the gaming.

Remedies for breach of contract. The taxation of the Indian tribe in amounts comparable to those assessed by the state for comparable activities. Class III gaming is lawful on Indian lands if: Notification by the tribe to the Commission of the results of such background check before the issuance of any such license. A standard whereby any person whose prior activities. Before taking effect. The tribe has prepared a plan to allocate revenues. 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.

Is adopted by the governing body of the tribe that has jurisdiction over such lands. Is conducted in accordance with a tribal-state compact entered into by the Indian tribe and the state. If the chairman is satisfied with the capital investment and income projections.

Any other subjects directly related to the operation of the gaming facility. Class III management contracts are subject to the following: Standards for operation. Commission Funding As of Indian Gaming 31 6. If a public corporation. Exceptions to this date are: Indian Gaming Facts from http: Federal law makes it a crime punishable by up to ten years in prison to steal. Respectfully submitted. It has been strenuously argued that the gambling business is in an entirely different category from what we may.

Approximately two years of operation under Senate Bill No. This levy lasted for 14 years until March Carville Governor This gross win tax was in addition to the table tax already in place. It is for these reasons that I have permitted Senate Bill No. The governor. 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. I feel. Present guesses may be supplanted then by definite information.

NRS Once the gross gaming win is calculated. When a settlement occurs. The tax is calculated as follows: Compromise a dispute 3. Repayment of credit for premium players may not occur for an extended period of time because of the large dollar amounts involved.

Caesars Palace. One thing that premium players generally have in common is that they play on credit. If the player wins. A cash method of accounting is used. Induce partial payment 2. Credit instruments are often settled to: In a situation where records supporting taxable gaming revenue cannot be evidenced by the licensee. Failure by a casino licensee to maintain records as required may be determined by the chairman to be following an unsuitable method of operation.

Regulation 6 also requires each casino licensee to establish administrative and accounting procedures providing for control over the internal. 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.

These circumstances include: A casino in Nevada can afford to be more daring in issuing credit since taxes are not generally payable on any uncollected amounts. The Statute also provides certain exemptions related to slot machines.

Any amount won by the casino over and above this theoretical win amount is only held in escrow by the casino. It is not uncommon. Nevada's gaming regulators adopted Regulation 6. Internal Control Systems 39 arrangements of this type also result. One of its primary objectives was to increase assurance that casino licensees were properly paying the required amount of gaming taxes.

Regardless of how much the player loses. 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. Access to assets is through specific authorization by management.

The report must also include responses from licensee management addressing any items of apparent noncompliance noted. Financial records are accurate and reliable.

The written system of internal controls the system is lengthy and covers every department subject to gaming or entertainment tax. 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 document must address: The procedures must be designed in a manner to reasonably ensure the following: The licensee is required.

Licensees were required. Assets are safeguarded. MICS were established for the following areas: Transactions are properly recorded to facilitate reporting of gaming revenue and taxes.

Adequate segregation of functions. Alternative procedures that provide adequate control may be approved by the chairman based on a written request for a variance by the licensee. Transactions are properly authorized by management. Asset accountability is periodically compared with actual assets and discrepancies are investigated.

Table 3. New Jersey regulators also require nonrestricted gaming licensees to submit a system of internal controls. MICS were established for electronic data processing. As part of this revision. During and early Front-line employees need technical skills to fulfill their position responsibilities.

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 reporting relationships and the assignment of responsibilities may also vary.

The management pyramid Fig. The chapter also provides a discussion of how to determine the number of employees needed to staff these key positions. Variations based on the size of the operation. At the bottom of the chart are the front-line employees. As employees move up within the organizational structure. Although every department and position is equally important to the success of the organization.

Toward the top of the chart are the management positions. The experience and organization of the management team have a direct impact on the profitability of the casino operation. The departments are divided along functional lines to provide for specialization as well as separation of responsibilities for accountability and control. Although at first glance there might appear to be some benefits to aligning the.

The vice presidents of security. These variations are too numerous to be addressed in this chapter. The typical organization starts with the president and branches out. 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. Both of these properties opened in and represent prime examples of the imagination, creativity, and attention to detail for which Steve Wynn is known. Kerzner has gained international acclaim for his imaginatively designed, high-quality, spectacular resorts.

Casino operations management pdf free

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. 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. 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 , 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.

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.

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. Many of the licensed operators were either members of or had connections with organized crime. The publicity of the hearings brought national prominence to Kefauver. Consequently, the Gaming Control Board the Board was created by the legislature in 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.

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. 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 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. 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. 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. 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.

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. 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. 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. 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 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.

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.

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 counterparts—the 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. Provisions for the continuous presence of Commission personnel represented a significant departure from the gaming control model employed by Nevada. 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.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. Nevertheless, errors are unavoidable. He was a well-known and respected businessman.

Yes go to 9 No see credit mgr. Wynn as one of the modern-day innovators in the gaming industry. Kerzner turned his attention to international development. The report includes the following categories of employees who are actively engaged in the administration or supervision of the casino operation: 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.

The intransit report Fig. If a customer is classified 4 in 14, the casino will almost always turn down a request for credit.

MARTA from Des Moines
See my other articles. I enjoy silat. I do fancy reading novels coolly .
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