The purpose of casino audit is to check the reliability of the control and compliance measures used in gaming activities and the casino cage. It submits reports to the finance department. Table games, slots, keno, bingo, poker, race and sports books, parimutuel, and the casino cage are frequently examined areas of casino audits. A supervisor or lead and a number of administrative staff members make up the staff of a casino audit function.
A daily evaluation of the paperwork created in the areas previously mentioned is the main focus of the operations carried out by casino audit. The completion of a checklist, which lists the precise actions taken for the specified region, serves as documentation of the performance of certain operations.
The checklist is signed or initialled by the auditor in charge of carrying out the procedures, who also specifies the date of the audit. Any deviations from the procedures carried out by casino audit are noted and reported to the department leader in charge of that area for further action.
The following is an overview of the casino audit procedures typically performed for each of the areas.
- Soft count activity.Casino audit will check all supporting documents in the drop box for each table against the sums shown on the master game report, depending on the degree of the operations carried out by the soft count team. Fill and credit slips, requests for fills and credits, markers, table inventory forms, and coupons are among the documents in the drop box.
- Jackpots/hopper fills. For computerized slot systems, periodic procedures are performed to verify the accuracy of the system totals, usually by footing jackpot and fill slips for selected booth cashiers and comparing the totals to those derived by the computer system. The continuity of the slips is also checked by reviewing reports showing the restricted copy (copy retained by the computer) of all slips for a given period. For manual systems, slot audit procedures include the agreement of the jackpot and fill slips with the copy retained by the dispensing (whiz) machine.
- Meter readings.The accuracy of the metre readings recorded by the computerised system is periodically tested to be sure. The actions taken may include taking periodic manual metre readings for specific machines and comparing them to the system’s recorded metre readings. Reviewing statistical data on slot machine performance may also reveal issues with the system’s metre readings.
- Weigh scale interface. The correctness of the data being communicated is periodically checked in casinos that use an interface to transport data from the weigh scale to the computerised slot system. This verification is carried out by comparing the weigh scale totals recorded during the count for a few chosen machines to the amounts input into the slot system.
- Currency acceptor meter readings. On a periodic basis, casino audit compares the currency amounts removed from the currency acceptor containers with the corresponding amounts recorded by the currency acceptor bill in-meters to identify any variances beyond preestablished levels.
Cage and Credit
- Cage activity. Casino audit personnel perform. a daily review of the documentation submitted by the casino cage supporting all increases and decreases to the cage accountability.
- Credit and collections. Periodically, procedures are carried out to check compliance with policies established for the issuance of credit, reconcile specific casino receivables to the amount shown on the ageing of casino receivables, and examine records of collection efforts and partial payments on outstanding receivable balances.
- Write and payouts.To calculate a gain or loss for a certain shift, procedures are carried out periodically to verify write and payout amounts. These procedures are essentially a check on the precision and reliability of the computer system given the advent of computerised technologies. When manual systems were more prevalent in the past, these techniques might have been more valuable.
- Banks and cash turn-in. Procedures are performed to audit individual cashiers and the turn-in for a shift in comparison to the audited win or loss in order to identify cashier over and short amounts.
- Keno tickets. On a test basis, winning tickets are regraded and compared with the restricted copy to verify the propriety of payout amounts. In addition, procedures for voiding of tickets and sequential numbering of tickets are reviewed.
- Draw tickets. In order to verify that the balls reflected on the draw ticket are accurate and that the game was properly cleared before the balls were reselected, draw tickets (which reflect the balls selected and other pertinent information for a given game) are compared with the surveillance tape of the empty and full “rabbit ears” or “goose neck.”
Race and Sports
- Winning tickets. Procedures are performed to audit large winning tickets. The tickets are regraded, the starting time of the event is verified as to the time the ticket was purchased, and the terms of the wager (e.g., the point spread) are reviewed for propriety against an independent source.
- Voided tickets. Void tickets are reviewed to ensure that they were properly voided, and computer reports showing void tickets for a given period are reviewed to ensure that the tickets were voided prior to the start of the event.
- Unpaid winners and future wagers. Procedures are performed periodically to review the handling of future wagers and unclaimed winners.
Unclaimed winners or “sleepers” are winning tickets for which the payout has not been made. Unclaimed winners represent a liability to the casino, and procedures must be established to ensure that payouts are made correctly.
Along with the steps outlined in the lists above, casino audit staff members also set up new employees and provide passwords to restrict access to computerised systems including slots, table games, race and sports, and keno. The audit team is also responsible for maintaining physical and accounting control over sensitive papers utilised in the casino operation, such as jackpot, hopper, and marker fill slips, fill and credit slips, and markers.
Typically, the necessary data is printed by the computer on the forms used with computerised systems. In these circumstances, the computer keeps note of forms that have not been reconciled and creates a listing that casino audit can use for research. The level of physical control needed to control digital forms is lower than that needed to operate manual forms.
By using issuance and usage logs, manual forms are numerically controlled and pre-numbered. For each type of form, a permanent inventory is kept, and the forms are routinely inventoried. They are kept in a locked space under casino audit supervision. Casino audit is in charge of putting a supply of forms into whiz machines, regulating access to the machines, and collecting the restricted copies of the forms, which are utilised for verification purposes, when the forms are dispersed from whiz machines. Casino audit staff members check off the forms as they are used for sensitive forms that have been put into service to detect forms that cannot be accounted for.
Reports containing critical performance metrics are created and kept up to date for a variety of casino operations sectors. These daily reports, which are generated and delivered to casino management, are used to pinpoint problem areas and assess the success of initiatives put in place to increase income. Numerous jurisdictions mandate the preparation and maintenance of statistics reports with the inclusion of certain data.
Many jurisdictions also require that the statistical information for the current year be compared with the prior year’s information in order to determine whether unusual variances or fluctuations are occurring. An example of this is the Nevada requirement that any fluctuations of plus or minus 3% from the base level—which is defined as the statistical win to statistical drop percentage for the previous business year—must be investigated, and the results of the investigation must be documented and retained.
The following are examples of statistical reports that are required in
Nevada as well as other jurisdictions:
- Table games. Reports must include statistical drop, statistical win, and statistical win to drop hold percentage by table and type of game. The report must indicate this information by shift (if applicable), by day, cumulatively month-to-date, and cumulatively year-to-date.
- Slots. Reports must be generated monthly indicating month-to-date and year-to-date hold percentages for each slot machine and a comparison of the actual hold percentage with the theoretical hold percentage for each machine.
- Bingo. Reports are prepared that indicate win, write (i.e., card sales),and the win-to-write hold percentage for each shift, day, month-todate, and year-to-date.
- Keno. Reports are prepared that indicate win, write, and the win-towrite hold percentage for each shift, day, month-to-date, and year to date.
- Race and sports book. A wide variety of reports are required, which provide information on all activity conducted in the book. The specific requirements are extensive and are included in the MICS for race and sports books.
Generally, statistical reports are required to be maintained in accordance with the record retention requirements specified by the particular jurisdiction.