(Formerly NCDA / NFGE)



Say what?
Steve Wynn is spewing bunk about tip-sharing policy, experts suggest

BY DAVID MCKEE
8/02/2007

TWO PLUS TWO DOESN'T EQUAL FIVE ... unless perhaps Steve Wynn is doing the math. How else to explain some of the rhetorical pretzels the Wynn Resorts CEO has twisted himself into of late?

On July 1, Las Vegas Sun Business Editor (and frequent Wynn confidante) Jeff Simpson reported that he'd spent an hour the previous weekend chillin' with the gambling impresario, discussing the rancorous relationship  between  Wynn  Las Vegas and its dealers. After threatening to hire scab dealers if  his  current  ones  go  on  strike,


PHOTO BY BILL HUGHES
Steve Wynn's recent comments have confused many local dealers.

Wynn reverted to a favorite topic: his controversial, September 2005 tip-redistribution policy, in which pit bosses and boxmen get slices of "toke" money that used to go exclusively to dealers.

Though he backed off his longtime claim that he has the best-paid dealers in town, Wynn said his reallocation of tip money was producing results. How? Well, blackjack hold had doubled in the last three months.

Wynn dealers, a skeptical bunch of late, were quick to pounce on their boss' non sequitur. What, they wanted to know, did the one have to do with the other?

Their annoyance with Wynn's apples-to-oranges comparison must have made its way to Simpson's mailbox because, after being "liberally sprinkled with profanity and insults," he revisited the issue the following Sunday. He detained Wynn from jetting off to Sun Valley, Idaho long enough to draw the CEO out on his "tip sharing improves blackjack hold" assertion.

What followed was perhaps stranger still.

"[Wynn] credited his crew of team leaders, motivated after receiving partial shares of the tip pool, with the improvement, saying that they had obviously been able to stop some blackjack mischief -- referring to the lower hold percentage that he thinks was likely caused by cheating, collusion or supervisors who didn't stop card counting," quoted Simpson.

Whu-what?!

Here was the unprecedented spectacle of a casino boss acknowledging "obvious" malfeasance in his own casino, tempered by some ass-covering "he thinks was likely" verbiage. How did Wynn know of this allegedly self-evident mischief? Did his pit bosses know about it, too, and sit on their hands until their paychecks were sweetened, as Wynn seemed to imply?

Also, if cheating, collusion and card counting were so rampant, how did it escape the "eye in the sky"? Who was in "collusion" with whom? Wynn employees, perhaps? And, if his $60,000-a-year pit bosses "didn't stop card counting," why on God's green earth did Wynn reward them with a $36,000 pay boost?

Dealer-activist Al Maurice, who works at The Mirage and whose son deals at Wynn Las Vegas, contended that Wynn, in the guise of praising his pit bosses, was pushing them under the bus. Or, as he wrote in a letter to Simpson that was shared with CityLife, "Wynn certainly has a strange way of displaying owner/employee relations and boosting morale. First he calls his dealers thieves and muggers and now he says that his floor supervisors allowed cheating, card counting and collusion which no one believes for a second."

Wynn's new corporate spokeswoman, Jennifer Dunn, did not respond to phone inquiries from CityLife.

If Wynn had reason to believe that cheating and collusion were afoot at his eponymous megaresort, did he alert the Gaming Control Board? Nope. Or, to use the diplomatic phraseology of Control Board member Randall Sayre, "The property has made no reports to the Gaming Control Board with concern to the hold percentage on their table games."

Were any casino owner with knowledge of cheating to keep the Control Board in the dark, "it would concern me," Sayre said, responding to a hypothetical question. "Clearly, not reporting it to us would migrate into the 'unsuitable methods of operation' that we've got." In other words, even if you keep your license you'll probably be paying a big-ass penalty.

"The change is too big to be driven by luck," insisted Wynn. (Actually, casino executives often say this or that property "played lucky," when experiencing a significant swing in table game hold.)

Maybe so, but Sayre and Las Vegas Advisor Publisher Anthony Curtis (a professional blackjack player) politely took issue with Wynn's single-faceted explanation, which employs an isolated, three-month sample. "All of these hold percentages bounce around, depending on luck, depending on skill," Sayre argued, noting they can swing considerably over the short term.

Curtis -- like Simpson, a vocal supporter of Wynn's tip-redistribution policy -- wasn't sold on Wynn Math, either. Calling from a California beach ("More torture than relaxation, to be honest with you"), he said he "kind of blanched a little bit" when reading Simpson's column, adding flatly, "They need more data. That improvement sounded quite drastic and quick."

While maintaining that having dealers making more (after tips) than pit bosses was problematic and that Wynn's income redistribution was "right on the money," Curtis relegated Wynn's sudden-turnaround theory to the realm of fairy tales: "What I would see as more likely is that, because of better pay, they got more qualified people in those positions. I doubt that the same people would all of a sudden say, 'Hey, we're getting paid more. Let's go stop all these things that we were ignoring in the past.' I just don't buy that."

Noting that blackjack hold is often a reflection of time spent playing, Curtis suggested Wynn should be giving his dealers some props, too. "If the dealers are disgruntled, as you would expect, then they would be poorer employees and they would make the experience less for the player, which would induce the player to leave more quickly," said Curtis, who moonlights as one of the star players on CBS' Ultimate Blackjack Tour. "It cuts both ways. The hold isn't just a function of how many problems you're stopping."

Characteristically, Wynn couldn't resist gloating to Simpson that his 20 percent blackjack hold was well above the statewide average. Taking a shot at his competitors (i.e., every other casino in Nevada), Wynn darkly theorized that "there must be problems at a bunch of other places."

Wynn's attempt at trash-talking fell on deaf ears in at least one executive suite. A Station Casinos representative said no one had mentioned the Simpson column around the office.

It used to be that when Steve Wynn spoke, all Vegas listened. Not anymore, it seems.

David McKee is a local freelance writer. He can be reached at mckee_news@cox.net.

Copyright © 2007, Las Vegas CityLife

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