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• Saxon Elfend

  YesterdayMay 7 at 10:46amManage Discussion Entry

  Due to the unique environment of a casino, there are numerous instances where casino operators are at risk of falling victim to fraud. I believe the biggest concern for operators is attributed to employee corruption for several reasons. Employee corruption within a casino can manifest in several forms such as theft, fraud, collusion, and unauthorized disclosure of sensitive information. These actions can be rooted in motivation by factors such as financial gain, personal vices, and external influences. Casino staff members with access to surplus cash and confidential data are also susceptible to fraud, even if they might not engage in such behavior under different circumstances.Employee fraud can come in the form of manipulating gaming results with a player they owe money to, tampering with slot machines, and providing excessive benefits to patrons for a kickback. There have been several cases I have seen, in the news, where dealers owe money to loan sharks and exercise fraudulent means to pay back their debts. Employee collusion can come in the form of colluding with external parties, such as organized crime groups or professional gamblers, gain insider information, or facilitate money laundering schemes. As an employee of a smaller casino operation, we have a close relationship with our casino managers and supervisors. We are in constant communication with them whenever a small problem arises in the realm of potential fraud, where transparency is easier to monitor rather than uphold. Although we do not have thousands of employees we monitor, we are still susceptible to employee fraud due to potential collusion and overlap from a smaller operation. It is not uncommon for managers of each department to interact, aside from manager meetings, due to the size of our operation. We are very engaged from a corporate standpoint and aware of potential problems than can arise internally from our operation.

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• I have said numerous times to my colleagues that casinos do attract crooks because of the money flow and high-risk characteristics of our industry. Internal issues can arise when a company fails to conduct thorough due diligence and hires employees who may seek to exploit opportunities for financial gain. There will always be employees who work at a casino, that are high-risk gamblers and risk takers, which can put an operator in a vulnerable position. While the glamor of the casino industry is undeniable, we always have to look out for those with ulterior motives. Have you had any experience with how your company has handled situations like these and created stronger controls because of it?