Should Dealers Keep Their Tips? Yes!

Casino Enterprise Management is a good trade magazine. It is one I read cover to cover each issue. One of the regular contributors is Bill Zender, a gaming consultant and former Nevada Gaming Control agent.

He penned a recent article making the case that casinos should allow dealers to keep their tips. As of now, the vast majority of properties do not do this, but have dealers pool their tips. Of the casinos that do allow dealers to keep their own tips, Native American casinos are the trendsetters.

The article has a list of pros and cons. They are:

"Pros

1. Increases levels of customer service, which keeps the customer playing longer and motivates the players to return in the future. Also decreases the effect of player desertion based on gambling loss.
2. Increases game pace which increases decisions and revenue.
3. Gives dealer a sense of ownership. Ownership increases morale, attendance, job longevity and positive work conduct.
4. Helps to retain and attract better employees.
5. Allows the operator to increase each dealer's time on table which lowers payroll expense.
   

Cons

1. Increases the possibility for theft and illicit dealer help.
2. Increases the chance dealers might deviate from procedures with players who tip well.
3. May result in money layoff between the dealers and the person responsible for doing the scheduling.
4. If the tips aren't reported by the dealer accurately, this failure to report could result in a number of employees getting into serious trouble with the IRS.
5. If under the present tip pooling agreement the dealers receive vacation tips, allow adequate time for vacations before rolling into the new tip procedure." [1]
   

I don't have a beef with any of the pros. With regard to the cons, I think there are ameliorating factors that can lessen the impact or probability. As casino security and accounting measures have improved (CCTV cameras, RFID cheques, etc.), the risk to dealers of being quickly detected if stealing tokens or assisting players is much higher. If a fair and formulaic staffing procedure is implemented, that will help eliminate the ability for dealers to "tip" a staffing supervisor.

The last two con arguments are still valid. However, those cons still apply regardless of tip scheme. All of us need to accurately report income. With regard to vacation tips, implementing a bit of a runway before changing the tip procedure should take care of that issue.

Overall, Mr. Zender's argument is sound. With the increasing popularity of online gambling, brick and mortar casinos need to sell the experience. Great dealers are part of that experience.

Citations:

[1] Zender, B., (2010, December), Motivating Your Dealers: Letting Them Keep Their Own Tips, Casino Enterprise Management, 103.

References:

Zender, B., (2010, December), Motivating Your Dealers: Letting Them Keep Their Own Tips, Casino Enterprise Management, 100-103.