HM 3115 final

key profit sources

hotel 33% slots 27 F&B 15 table games 15 show room 5

2 primary types of reels

mechanical video

4 forms of reel slot game design

multipliers line games buy-a-pay buy-a-symbol hybrids

gaming's economic impact

$240 B 1.7 million jobs $73.5 B wages/income $38 B Tax revenue

Missouri's gaming economic impact

$3 B 20K employees 13 casinos

all negotiable instruments with a face value of ___ or more must be logged

$3,000

Title 31

"a law to prevent and detect money laundering" Bank Secrecy Act To stop criminal activities in the casino Transactions > $10,000 Anti-Money Laundering [AML] Suspicious Activities

three tiered rating system at craps

-Good Player Only makes bets with low house edges such as Pass, Don't Pass, Come, Don't Come House edge is 1.5% -Typical Player Makes place bets of 4, 5, 9 , 19 House edge is 5% -Action Player Makes the high house edge bets in the center of the table House edge is 10%

how does rating occur

-Write down play -Record the average bets -Indicate the speed -Record how much won or lost -Store information/data in a computer

slot shift supervisor

Direct supervision of GSRs Often perform GSR duties when necessary First point of contact in the customer dispute resolution chain/process

senior slot technician

Direct supervision of Journeymen and Apprentice Technicians

how many riverboats in MO

13

how many casinos in Missouri

13 week 2 lecture 1 slide 7

restricted license

15 or less machines, no other gaming

non-restricted license

16 or more slot machines

when gambling was legalized in Nevada

1869

first slot machine

1895 Charles Fey had 3 reels with 20 objects 8,000 combinations

refine slot machine

1907 Mills

gaming illegal in Nevada then re-legalized

1909; 1931

oldest slot manufacturing company

1932 Bally Raymond Moloney

Nevada State Gaming Control Division

1955

Nevada Gaming Control Board

1955 conduct a background investigation of each applicant before a public hearing takes about 6 months

Nevada Gaming Control ACT

1959

Gaming Policy Committee

1961 11 members- meets at call of the gov advisory recommendations- not rulings

first electrical slot machine

1964 Bally

Atlantic City

1978

Seminole tribe vs. Butterworth

1979

title 31 Bank Secrecy Act

1985 Cash transactions in the casino -have gross annual gaming revenues (GAGR) in excess of $1M

National Indian Gaming association NIGA

1985 non-profit organization of 184 Indian Nations with other non-voting associate members representing organizations, tribes and businesses engaged in tribal gaming enterprises from around the country.

Indian Gaming Regulatory Act

1988

Indian Gaming Regulatory Act IGRA

1988 Provide a statutory basis for the operation of gaming by Indian tribes to promote tribal economic development, self-sufficiency, and strong tribal governments; ensure tribes are primary beneficiaries

riverboat legalization years

1989 - Iowa 1990 - Illinois 1990 - Mississippi 1991 - Louisiana 1992 - Missouri 1993 - Indiana

Missouri Gaming Commission

1993 5 members 3 year appt.

how many casinos in Nevada

263

Nevada Gaming Commission

5 members appointed by governor act on the recommendations of the State Gaming Control Board in licensing matters and ruling in work permit appeal cases. Final authority on licensing matters, having the ability to approve, restrict, limit, condition, deny, revoke, or suspend any gaming license. Charged with the responsibility of promulgating regulations to implement and enforce the State laws governing gaming.

how many riverboats in US

55+ 6 states

revenue from slot machine is ___% of total revenue

70%

theoretical loss

=casino advantage x total wager

rating

A system wherein casinos keep track of the playing activities of its regular patrons -Used to award complementary and identify customers for casino marketing purposes such as direct mailing of promotional materials and invitations to special events

Class III

All other games, such as Slot machines Casino banking Percentage games Off-track betting Lotteries -roulette -baccarat -blackjack -craps

what is reportable Title 31

Any single or group of related transactions totaling $5k or more; -when an employee knows, suspects, or has reason to suspect the transaction Involves funds derived from illegal activity, or is intended to conceal funds derived from illegal activity; -Is intended to avoid or prevent the filing of a CTR-C; -Has no business or apparent lawful purpose or is not the sort in which a particular customer would normally engage; or -Involves the use of the casino to facilitate a criminal activity

suspicious activity per Title 26

Any transaction featuring a person who appears to be attempting to: Prevent an employee from filing a report Cause an employee to file a false or incomplete report Engage in a questionable or illegal activity

R&S manager

Assists Director with admin. responsibilities Direct supervision of all book supervisors & employees (on both sides, i.e., Race & Sports) Create promotions & special events Establish or adjust opening lines (Sports only) Manage bookmaking process for each line (Sports only)

major slot machine companies

Bally IGT Aristocrat

Flamingo murder

Benjamin Siegel

Class II

Bingo, pull-tabs, technologic aids, nonbanking card games allowed by the State. Totally random possibilities Tribal regulations NIGC oversees regulations

what games are rated

Blackjack Craps Roulette Baccarat Pai Gow Pai Gow Poker Caribbean Stud Slots

structure of surveillance department

Board of Directors Director of Surveillance Shift Supervisors Surveillance Agents / Operators Surveillance Investigators Surveillance Technicians Surveillance Auditors

structure of security department

CEO / General Manager Director of Security Assistant Director of Casino Security Shift Supervisors Security Officers Security Investigators

what form is used to report currency transactions occurring in the casino

CTR-C or FinCen Form 103

Title 26

Cash transactions in nongaming areas -gross annual income less than $1M

slot machine invented

Charles Frey 1895

director of table games

Chief administrator for table game operations Strategic planning & implementation Participates in authorizing/granting of credit

R&S director

Chief administrator for the books Develop strategic initiatives

director of slot operations

Chief administrator for the department Responsible for procurement/interaction with suppliers

poker room manager

Chief administrator for the poker room Responsible for operating strategy Issues comps Creates promotions and tournaments

slot operations manager

Chief tactician - implements all strategies from senior management Studies the customer experience with an eye for possible improvements

dealer

Deal the games in a technically proficient manner Provide a friendly gaming atmosphere Alert management to any suspicious activity

poker room floor supervisor

Direct supervision of dealers; open/close games; greet players; front line of dispute resolution

Race book supervisor

Direct supervision of race book writer/cashiers Create work schedule for writer/cashiers Ensure premium player wagers are tracked/recorded Attend to customer complaints

Drop

Drop = Markers issued - Markers Redeemed + Cash + Gaming Cheques from other Casinos + the Casino's own cheques

two primary objectives of gaming regulations

Ensuring that gaming is conducted honestly, competitively, and free of criminal and corruptive elements; and Ensuring accurate and timely taxes are paid to the state

poker room game attendant

Facilitate buy-ins Keep room clean of debris Attend to the player waiting list Recruit and encourage play (front man)

suspicious activities in the casino are reported on which form?

FinCen Form 102 aka SARC form

Slot Floor Persons (aka GSRs)

Front line - frequent contact with customers Key tasks: Customer service; Jackpot processing; Minor machine repairs

Gross Gaming Revenue (GGR)

GGR = Cash Rec'd as Winnings + Cash Rec'd in Payment of Past Credit Issues + Cash Rec'd as Rake - Cash Paid Out as Losses to Gaming Patrons

Title 26 form

IRS Form 8300

Cherokee vs. Georgia 1831

Indian Nations had the full legal rights to management their own affairs, govern themselves internally and engage in legal and political relationship with federal government

Riverboat

Iowa-1980s first cruise- 1991 Iowa, IL, Mississippi, Louisiana, MO, IN

Caesar's Palace

Jay Sarno 1966

Mark Twain Casino

LaGrange MO Gaming Space - 18,000 square feet Electronic Gaming Devices - 613 Table Games - 12 Buffet (2) Restaurant & Deli Rooms - 000 Employees - 221

bench technician

Little if any customer interaction Complex repairs of electronic devices, including... Monitors; CPUs; power supply units Bench Tech Value = Extension of game life

largest Las Vegas hotel-casinos

MGM Grand - 5,044 rooms Luxor Hotel and Casino- 4,400 rooms. Venetian - 4,034 rooms. Aria - 4,004 rooms. Bellagio - 3,993 rooms Excalibur Hotel and Casino - 3,981 rooms Caesars Palace - 3,960 rooms. Circus Circus - 3,767 rooms Flamingo Hotel and Casino - 3,626 rooms Mandalay Bay - 3,211 rooms

slot shift manager

Managerial generalist at the shift level Responsible for procurement/interaction with suppliers

Moulin Rouge

May 1955 LV's first racially integrated hotel-casino liquor license revoked- shut down

poker dealer

Most must be able to deal Texas Hold 'em, 7-card Stud, & Omaha Provide a courteous & friendly gaming environment

slot technician manager

Plan/manage the work & workload of technicians Personnel responsibilities Maintain slot master database

largest Native American casinos

Potawatomi Bingo Casino (Milwaukee, Wisc.) - 780,000 square feet San Manuel Indian Bingo & Casino - 480,000 square feet Island Resort & Casino (Harris, Mich.) - 408,520 square feet Mohegan Sun (Uncasville, Conn.) - 364,000 square feet Foxwoods Resort Casino (Mashantucket, Conn.) - 344,000 square feet

journeyman and apprentice technician

Preventative maintenance; Game conversions; replace monitors; reset frozen screens, general troubleshooting of malfunctions, etc.

cage director

Primary administrator Manage cash balances to ensure compliance with regulations (e.g., minimum bankroll requirements) Assume credit and collection responsibilities in the absence of a Credit and/or Collection Manager

cage main bank

Primary storage/vault area Supplies funds to all other banks, including front windows and satellite windows/cages Accepts transfers from gaming areas, the count room, and all other banks Supplies funds to pay substantial jackpots/customer payoffs

Slot performance analyst

Query the system; produce/design reports ID ways to improve the slot mix ID the determinants of (un)successful games, game locations, & game configurations

main bank stores

Reserve gaming cheques Cash cassettes for kiosks Currency -Currency on hand -Currency ordered from external banks -Currency received from the Count Room

poker room shift manager

Responsible for operations on a single shift Assists Manager with all admin. responsibilities Participates in disciplinary matters

pit manager

Responsible for the operation of all games within a single pit Direct supervision of floor persons Issue comps This position has disappeared in some casinos, as the number of table games has declined

sports book supervisor

Same basic duties as the Race Book Supervisor + Basic adjustments to betting lines (per policy - nothing tricky)

most influential casino executives

Sheldon Adelson - USA Steve Wynn - USA Dr. Stanley & Lawrence Ho James Parker - Australia Kazuo Okado - Japan

Cruise to Nowhere

Ships sail out into the ocean and back without stopping at any other ports Ports Florida Texas Georgia South Carolina New York Massachusetts

Class I

Social and traditional forms of Native American gaming, planned and controlled solely by tribal authority Includes social and traditional games in connection with tribal ceremonies, powwows, or celebrations.

Ameristar Casino

St. Charles MO Gaming Space - 119,200 square feet Electronic Gaming Devices - 2,326 Table Games - 77 Buffet (6) Restaurant & Deli Rooms - 397 Employees - 1,579

seminole tribe vs. butterworts Florida

State does not have the regulatory power over tribe Tribe kept its bingo parlor

marker bank

Stores all outstanding markers Stores return-to-maker (RTM) checks Stores front money deposits Stores gaming-related wire transfer documentation Accepts the daily mass marker transfer

fill bank

Stores in-service gaming cheques But not roulette chips Facilitates table game fills and credits Stores cheques received from windows

shift manager

Supervise Pit Managers Issue comps (full authority) & credit (limited) Schedule games (to open) and personnel

floor person

Supervise the operation of 1 or more table games Front line of customer dispute resolution ID unknown players of interest Player rating Title 31 compliance

employee cage

Supplies imprest banks to employees Employees from: Restaurants, Retail Shops, Box Offices, Slot Operations, and other areas Provides a secure drop box for ending employee banks Replenishes imprest banks (mid-shift) Provides an exchange venue for tip earners

California vs. Cabazon Band of Mission Indians

Supreme Court upheld the rights of tribes as sovereign nations to conduct gaming on Indian lands free of state control when similar gaming is permitted by the state outside the reservation for any purpose State does not have the jurisdiction to prohibit Native Americans from gambling

first LV casino

The Meadows Tony Cornero 1931 burned down

all party consent recording

Twelve (12) states require the consent of everybody involved in a conversation or phone call before the conversation can be recorded. Including: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Pennsylvania and Washington.

selection criteria for GC

US citizen & Nevada resident; Not a member of the NV Legislature; Not a person holding any elective office in the NV gov't, nor any officer or official of any political party; No one actively engaged in or with direct financial interest in gaming activities; and Preferably, no two members shall be from the same profession/industry.

selection criteria for GCB

US citizen, and, or within 6 months of appt., be a resident of Nevada; Not a member of the legislature; and Not a person holding any elective office in the NV gov't., nor any officer or official of any political party.

management structure middle

VP of... marketing resources casino operations hotel operations F&B Finance

profit structure info

Week 5 lecture 1

win formula

Win = Coin-in - Coin-out - Hand Paid Jackpots - Fills - Progressive  Accrual

impress bank

a bank wherein a fixed balance is maintained and regularly replenished and used for paying small, routine operating expenses

what is a slot machine

a mechanical device (however most modern slot machines are controlled by computer chips) that spins "reels" in a circle (typically three) and on each "reel" there are symbols. When the symbols land in the proper order on the "payline" the slot machine dispenses the proper amount of money

leakage

amount of money spent by a population of an area or state for imported goods and services plus local funds

form 10-k

annual report required by the Federal Securities Laws for public companies to disclose information on an ongoing basis. -Provides a comprehensive overview of the company's business and financial conditions which includes an audited financial statement

Currency Transaction Reports CTRs

any cash transaction over $10,000 requires the preparation of a CTR

how long does surveillance keep footage

at least 7 days

who reports to Gaming Control Board

audit, administration, corporate securities, Tax and license, technology, enforcement, investigation

casino cage operations

below

poker room operations

below

race and sports book operations

below

table game ops

below

Title 26 Currency Reporting aka Internal Revenue Code

cash payments from patrons exceeding $10K are reported

management structure bottom

director of... slot operations table games race and sports pokey manager bingo manager keno manager

slot win

drop-jackpots-fills-progressiva accrual

EBITDA

earnings before interest taxes depreciation and amortization

Pareto's rule 80/20 rule

employed to describe a distribution principle - most of the gaming win comes from few of the players

Howard Hughes Jr

first casino businessman to not be corrupt purchased 20% of hotel rooms on the strip

theoretical win formula T-win

game played= average bet x hours played x decisions per hand x house advantage

who reports to gaming commission

gaming control board gaming policy committee

who reports to governor

gaming policy committee, gaming commission, gaming control board

junket

is an organized trip to a casino. A casino representative will travel with you to ensure that things run smoothly. books your flight & hotel accommodations provides the transportation from/to the destination airport.

are all cash transactions reported

no- just cash in and cash out transactions over $10K in one day

buy-a-pay

only pays on the horizontal line can buy additional jackpot symbols

IGRA Mandates 1988

permitted federally recognized Native American tribes to conduct gambling operations only in their home states; created 3 classes

multiplier

played on the horizontal line- more coins increase the payout

line games

player can activate more lines with additional coins

management structure top

president and general manager

Anti-Money Laundering Program (AML)

procedures designed to guard against someone using the firm to facilitate money laundering or terrorist financing

how are jackpots accumulated

progressive controller

Money Laundering Act 1986

prohibits the casino from directly exchanging cash for cash on the behalf of a patron for amounts greater than $2500

RMFL

recency monetary frequency location

manufacturer's license

required for companies who manufacture gaming devices, equipment and related materials.

Distributor's license

required for companies who sell and distribute gaming devises, equipment and related materials

Video Lottery Terminal VLT

slot machines with the ability to play several or any games *video poker

3 configurations of progressive games

stand-alone LAPs WAPs

MTL threshold

usually between $3,000-5,000 determined by management less than $10k

gambling historic locations

week 1 lecture 2

placement of machines

where the slot banks and coin booths are placed -Loose machines placed in busy walkways -Machines place near compatible enticement -Dollar and higher value machines place near the pit. -Popular machines placed near entrances