Casino ppt

C H A P T E R F O U R

Casino Management

THE MANAGEMENT PYRAMID

One of the keys to success for a casino, or any business venture, is the ef-fectiveness of the management team. The experience and organization of the management team have a direct impact on the profitability of the casino operation. The mission of this chapter is to present and discuss the organizational structure of a typical casino and hotel along with descrip-tions of the responsibilities of a number of the key posidescrip-tions within the operation. The chapter also provides a discussion of how to determine the number of employees needed to staff these key positions.

Although every department and position is equally important to the success of the organization, only the positions within the casino depart-ment or those that are integral to the day-to-day operations are detailed.

At the bottom of the chart are the front-line employees, including dealers, cage cashiers, and change attendants. Toward the top of the chart are the management positions, including the games manager, the director of casino marketing, and the vice president of casino operations.

As employees move up within the organizational structure, the skills necessary to perform the job functions change. Front-line employees need technical skills to fulfill their position responsibilities, whereas employees at the top of the chart require fewer technical skills and more manage-ment skills. The managemanage-ment pyramid (Fig. ) depicts the relationship be-tween the skills required and the level of the management.

CASINO ORGANIZATIONAL STRUCTURE

The organizational structure presented in Figs. and would be found at a typical casino in many different gaming jurisdictions. Varia-tions based on the size of the operation, as well as the number and type of games offered, are common. The reporting relationships and the assign-ment of responsibilities may also vary, depending on a number of vari-ables, ranging from the skills and experience of the particular individuals

to requirements within the specific gaming jurisdictions. These variations are too numerous to be addressed in this chapter.

The typical organization starts with the president and branches out, based on functional responsibilities. The departments are divided along functional lines to provide for specialization as well as separation of re-sponsibilities for accountability and control. The vice presidents of secu-rity, human resources, and finance all perform responsibilities that re-quire them to operate independently of the operating department heads.

For example, it would not be in the best interest of the operation for the director of surveillance, who is responsible for monitoring activity within the casino, to report directly to the vice president of casino operations. Al-though at first glance there might appear to be some benefits to aligning the

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Figure The Management Pyramid

organization in this manner, the director of surveillance must be free to per-form responsibilities that include reporting on regulatory violations ob-served, as well as infractions noted involving casino personnel. The director of surveillance and his or her staff are a key part of the protection of the gaming operation and its assets, and any impairment of these responsibili-ties has a direct impact on the success of the operation.

Generally, the vice president of finance reports to the president di-rectly. Depending on the ownership structure of the casino, the vice presi-dent of finance may instead have a direct reporting relationship to a rep-resentative of the owners. The vice president of finance is a key position in any casino organization, since the responsibilities of this position in-clude establishing and tracking performance against budgetary guide-lines, auditing the results of operations, regulatory compliance, and, in most casinos, overseeing the cage, credit, and collection functions. This individual is not only a check and balance on the other operating depart-ments, but is also responsible for safeguarding the assets, including the cash maintained for the day-to-day operation of the casino.

The following are brief position descriptions for many of the key po-sitions indicated in the organizational chart presented (Fig. ) relevant to noncasino departments:

• President (General Manager)—Responsible for the overall operation of the casino, including the hotel and all related operations. The re-Casino Organizational Structure 45

Figure Typical Casino Hotel Structure and Noncasino Departments of Particular Importance to Casino

46

Figure Typical Casino Structure

sponsibilities of this position are strategic as well as day-to-day in na-ture. Ultimately, all personnel report to the president. The person in this position reports to representatives of the owners.

• Vice President of Finance—Responsible for all financial activities for the operation. Direct reports normally include accounting, cage, credit, collections, information systems (IS), and purchasing.

• Vice President of Casino Operations—Responsible for the overall op-eration of the casino, including slots, table games, and other gaming operations such as keno, race and sports, and poker. Gaming and gaming compliance are two critical areas of responsibility for this individual.

• Vice President of Human Resources—Responsible for employment, compensation, benefits, labor relations, training, and workers’ com-pensation functions, as well as compliance with applicable federal, state, and local requirements pertaining to these areas.

• Vice President of Security—Responsible for surveillance, security, in-vestigations, safety, and risk management, which includes handling insurance issues and guest loss complaints.

The following are brief descriptions for many of the key positions indi-cated in the organizational chart presented (Fig. ) relevant to the typi-cal casino structure:

Table Games

• Games Manager (Casino Manager)—Responsible for table games op-erations and personnel. Supervises the shift managers.

• Shift Manager—Responsible for the operation of table games and the associated personnel during a particular shift. Supervises the pit managers and all other table games personnel during the shift.

• Pit Manager—Responsible for overseeing the operation of the table games in a designated pit. Supervises the floorpersons and dealers within the pit and is also responsible for customer relations and games protection.

• Floorperson—Responsible for supervising the operation of a group of table games within a pit. Supervises the dealers at the assigned tables.

Also responsible for compliance with house rules and rating player action.

• Dealer—Responsible for the operation of a given table game. Dealers must comply with house rules for the conduct of the particular game.

• Pit Clerk—Completes pit transactions such as fills, credits, and mark-ers through the use of the casino computer system or manually. This position may report to either cage or casino supervisory personnel.

Slots

• Slot Manager—Responsible for the operation of the slot department, including selection of machines and determination of floor configura-Casino Organizational Structure 47

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tion, as well as machine maintenance and operation. Supervises the shift managers and head slot mechanic.

• Shift Manager (Slots)—Oversees the operation of the slot department, including all personnel during a particular shift. Responsibilities in-clude customer relations and verification of large jackpot payouts.

• Head Slot Mechanic—Responsible for the maintenance and repair of all slot machines. Also maintains records pertaining to all slot chines, including location, par sheets, and any changes to the ma-chine. Supervises and trains all of the slot mechanics.

• Floorperson—Responsible for participating in the verification and conduct of jackpot payout and hopper fill transactions. Supervises change attendants and booth cashiers.

• Change attendants—Perform customer service transactions, includ-ing makinclud-ing change. Also responsible for an assigned bank.

• Booth cashiers—Responsible for completing jackpot payout and hop-per fill transactions. Also responsible for making change and redeem-ing coins for slot customers.

Casino Marketing

• Director of Casino Marketing—Responsible for all aspects of market-ing the casino, includmarket-ing developmarket-ing and maintainmarket-ing a database of customers. Also responsible for designing and implementing pro-grams to attract new and repeat customer visits. Oversees operation of the slot club, casino hosts, branch offices, tournaments, and special events.

• Hosts—Responsible for identifying and attracting new casino cus-tomers, as well as servicing the needs of the existing customer base.

Other Casino Departments

• Keno Manager—Responsible for the operation of the keno depart-ment including staffing, customer relations, game integrity, compli-ance with gaming regulations, and financial performcompli-ance.

• Keno Shift Manager—Responsible for the operation of the keno game during a particular shift. Involved in verifying payouts on winning tickets.

• Keno Writer and Runner—Provides service to customers by accept-ing wagers and handlaccept-ing payouts on winnaccept-ing tickets. Writers are based behind the keno counter, whereas runners go to where cus-tomers may be, such as restaurants and lounges.

• Poker Manager—Responsible for the operation of the poker depart-ment, including staffing, customer relations, game integrity, compli-ance with gaming regulations, and financial performcompli-ance.

• Poker Shift Manager—Responsible for the operation of the poker games during a particular shift. May perform as the poker cashier as well as conducting tournament activities.

• Poker Dealer—Responsible for the operation of a given poker table.

Dealers must comply with house rules for the conduct of the particu-lar game.

• Director of Race and Sports—Responsible for the operation of the race and sports department, including staffing, customer relations, game integrity, compliance with gaming regulations, and financial performance.

• Race and Sports Shift Manager—Responsible for the operation of the race and sports book during a particular shift. Race and sports shift managers are responsible for administrative functions relevant to up-dating event information in the computer system as well as verifying payouts on winning wagers.

• Race and Sports Writer (Mutuel Clerk) and Cashier—Provide service to customers by accepting wagers and handling payouts on winning tickets.

Security and Surveillance

• Security Officer—Responsible for protecting the assets of the casino.

Participates in casino transactions, including table fills and credits, and may participate in slot transactions, including jackpot payouts and hopper fills. Observes card and dice transfers and maintains se-curity over the drop and count process. Controls access to keys per-mitting access to sensitive and restricted areas.

• Director of Surveillance—Responsible for the operation of the sur-veillance department, including staffing, games and guest protection, communicating with regulatory authorities, asset protection, and monitoring compliance with rules surrounding game conduct (house rules), gaming regulations, and internal control procedures.

• Surveillance Officer—Observes, records, and reports suspicious or improper activities within the casino operation. Focus is on compli-ance with gaming regulations, house rules, internal control proce-dures, and asset protection.