Bellagio Casino: Blackjack Dealers

1. Focus on three key roles at mainly three levels of authority in the casino-blackjack dealers, pit bosses, and the vice president of table games. How would you characterize the "control strategy" (e.g., tight vs. loose) used over each of these roles?

a. Blackjack Dealers

The pit bosses watched the blackjack dealers to avoid any fraudulent activity.  The control for blackjack dealers was tight, which included table assignments, closed circuit television, and two dealers at the table, relief dealers, and floor persons.  The dealers also need to wear uniforms, and the also had some controls over cash and credit to make it difficult for doing fraud.  Bellagio only hired experienced dealers and required some training (Merchant & Van der Stede, 2012).

The CCT was the best control of all the controls that Bellagio had.  The CCT proved that it decreased the number of crime and prevented crime (Piza, Caplan & Kennedy, 2014).  Overall, The control for Blackjack dealers was tight.

b. Pit bosses

Pit bosses were not as tight as the dealers, but the control was still pretty tight as they were on the floor watching dealers and handling customers. The controls were pretty much the same as the dealers. There was a background check, CCT, and they had to go some cash and credit procedures as well (Merchant & Van der Stede, 2012).

The documentation and procedures were really important as they can be used as evidence.  Moreover, it helped the auditors to improve efficiency and effectiveness in planning the audit, providing a record, and other audit activities Vinatoru, S. S., & Calota, G. (2015).

c.  The vice president

The vice president control was a little loose since there was a little supervision on them. However, the control strategy in the casino as a whole was tight enough to make the employees know the expectation and to secure the casino’s assets

1. Prepare a list of the controls described in the case. What control problems are they designed to address? Are the managers interviewed for the case justified in being proud of their company's control system? Why or why not?

• Locked cash boxes on the casino floor. This control was to avoid money stealing.
• Daily cash and coin counts performed by employees who were independent of casino operations. This control was design to make sure the accurate amount and to avoid the personnel change amount.
• Constant observation and supervision of the gaming area.  This control was designed to watch the activity in the gaming area.
• Observation and recording of gaming and other areas by closed-circuit television. This control was designed to watch the dealers and pit bosses activity.  It would help the casino to reduce and prevent crime activities.
• Timely analysis of deviations from expected performance. This control would help to eliminate the evidence.
• Constant computer monitoring of slot machines. This control would help fixing the machines in case it was broken.
• Controls over cash and credit

• Individual accountability for cash and (cash-equivalent) stocks. This meant the individual would be responsible directly for a specific amount of money
• Formal procedures for transfers of cash. It helped to prevent the employees steal the money
• Strict controls over credit insurance.  It helped the casino to prevent unpaid markers and to make sure they can collect the money.
• Tight security in courtrooms. This control was designed to assure there was no unauthorized access.

• Controls of games

• Licensing. The casino required a background check, experienced employees, and trainings. This was designed to prevent any crime, unexpected steal, and minimize the errors in the game.
• Standardize of actions at the tables. This was designed to make the supervision efficient and effective.
• Supervision and surveillance. This was designed to watch the employees in the table and to improve customer services
• Monitoring of results. The management watched the results and hold numbers carefully. This was to avoid thefts or improper acts by employees.
• Auditing procedures. This was to prevent fraud and to keep evidence.

• Bonuses. This was to keep the employees motivated.

No, they are not. They did not fully understand what happens at the table, the machine slot was sometimes broken. The combination of the RFID would solve the problem regarding the tracking chip, but it would leave customers feeling less entertaining. There were the inevitable human errors. They also thought they should improve the camera surveillance as well

1. Are any of the control systems in place at the Bellagio Casino Resort suitable for firms in other industries?

Yes, the control systems at the Bellagio might be suitable for come firms in other industries. The audit firms can also use the control systems in the casino such as checking the transaction and monitoring the operation. The retail industries can apply the control system at the Bellagio as well to prevent stealing.