(Formerly NCDA / NFGE)





 
Dealers Suspect Toke Skim At Wynn Resort
“Veil of Secrecy” surrounds count room procedures, results

By Fred Couzens
Las Vegas Trbune
Photos by Fred Couzens



(1st photo) Wynn Resorts Limited, owner of the Wynn Las Vegas Resort and the (2nd photo) Encore Las Vegas, uses identical toke, or tip, boxes at both resorts which are solid metal boxes measuring about 80 cubic inches that hang from automatic card shuffling machines located to the side of the dealers. Both are brown, bear no markings or numbers, and have the same lock on the top. The box on the left is at the Wynn Las Vegas casino while the box above is at the Encore– both have solid walls to prevent chip observation while toke boxes in other casinos on the Las Vegas Strip have clear, transparent wall sides so chips can be seen easily.

 

Dealers testifying before the state labor commissioner last week in the tipsharing policy case filed by four dealers against the Wynn Las Vegas Resort, outlined the procedures that take place with the counting of tokes, or tips, which, according to some, leads to suspicion that counts and distributions are not accurate and management is taking some of the money before it’s shared among the dealers, former floor supervisors and pit bosses now called casino service team leaders and boxmen.

“I can’t personally say whether or not I believe there’s any skimming going on, however a large number of dealers suspect that it is,” said 35-year-old Daniel Baldonado, a table games dealer at the Wynn Resort since the casino opened in April 2005, during a break in testimony.

“To me, for lack of a better term, I find it all shady. We’ll have days that certain dealers will say I dropped so much (into the toke box) and the next day they say the count is so low. The general opinion seems to be something’s not right, otherwise why is the process so hidden.”

The procedure for counting tokes, or the tips in the form of chips, includes taking collection boxes from inside a podium in the pit area, transporting them to a storage room for temporary holding and then into a count room where only management personnel sort and count the  chips and then report the numbers to the payroll  department that, in turn, prints
out  a  list  with  each  person's  name

and how much they made in tips that day.

Dealers individually are not allowed to participate in the chip counting or reporting process once the collection boxes leave the podiums on the casino floor and the dealer’s toke liaisons, or representatives, only have three days to review videotapes recorded during the count. When the casino run by Steve Wynn opened, the tip-sharing policy had dealers collect and share all of their tips amongst themselves only.

Then, in September 2006, Wynn changed the tip-sharing policy to include floor supervisors and pit managers, the personnel behind the dealers whose job title was changed to customer service team leader, and boxmen who control the money at the craps tables. Reportedly, the CSTLs were included in tip sharing because Wynn’s rate of pay, somewhere between $25 and $30 an hour for a floor supervisor, was too low to attract qualified people and so a means had to be found to jack up the hourly wage to make the position attractive.

No one else is supposed to share in the tips paid by customers, but stories are now surfacing that others excluded from the tip pool are taking some of the money. “I know we had a problem with our head of security who was just fired for taking part in the toke pool,” said 47-year-old Eric Qualle, a table games dealer who helped open the casino in 2005. “In the 4-1/2 years I’ve worked there, I’ve seen supervisors get greedy one or two items.”

Qualle added that he’s heard stories from other dealers who suspect something is going on. “There are a lot of conspiracy theories,” he said. “For the most part I hope and pray that it’s not true. But then again, it was against the law for any member of management to benefit from the toke pool, that’s federal law and state law. And Steve Wynn was able to go up to Carson City and get the law changed because he didn’t want to give supervisors raises.” When asked about how management handles the toke counting process that leaves dealers on the sidelines, Qualle called the mystery that goes on in the count room, “a veil of secrecy.”


According to Wynn Las Vegas dealer Kanie Kastroll, who testified at the tip hearings before the state labor commissioner last week, chips dropped in the toke boxes at the side of a table game are dumped into a larger, locked box in a podium in the pit area and then the podium box is taken into a count room where the total amount of tips is determined by management personnel without any dealers involved in the counting or accounting process.

Adding more mystery as to whether the tokes are being accounted for properly, Kanie Kastroll, another tables games dealer who has been at the Wynn since it opened, testified that for the last three years she’s kept a daily record of the tip distribution report “for myself and everybody else in case we need it for reimbursement purposes.” The 41-year-old dealer, who also was elected in May as vice president of Local 721 of the Transport Workers Union, the labor organization that represents the nearly 600 dealers at the Wynn, said she called her daily tally the “Toke Error Report” because surprisingly there were a lot of errors in management’s reporting of the tokes.

“Up until June 26, 2009, and I started it Sept. 1, 2006, I found there to be an error 57 percent of the time,” she told a questioning Lawrence Litman, the attorney who represents Meghan Smith, Kastroll’s fellow dealer at the Wynn until she quit in late July 2007. “And of that 57 percent, 17 percent of those days there was more than one error. The most common error was in the case of toke shares. One plus one plus one should be three, but sometimes the (Wynn) report would say two when the calculator said three so you’d ask yourself where is the missing share of tokes going?” Litman followed, asking if she ever established where the missing tokes went and she said no. He also asked if she had some idea who would get the distribution of shares.

“I don’t know,” she replied, “because we’re not doing the paperwork. Could be a fund or an individual. That’s my concern, the accountability of it.” Litman then asked if she knew of instances where CSTLs were being paid incorrectly. “At one point, there were a lot of CSTLs getting paid vacation tokes,” Kastroll testified. “There were three CSTLs meeting with management recently (and) they still were being paid with tokes even though they didn’t have any time on the floor. Two are on the Wynn rebuttal list. They were in the office being coached by (Wynn Resorts principal attorney) Mr. (Gregory) Kamer.” During a break, Kastroll was asked how it was possible there was a 57 percent error rate.

“That’s the question I have,” she said. “If your profession is accounting or payroll, you’re only job is to get the numbers right down to the penny. There’s no gray area, it’s black and white or black and red in their terms. So, to have a 57 percent error rate is extremely high for an accountant or a payroll person.” Another issue that feeds the suspicion mill is the record of what goes on in the count room from which dealers are excluded. Wynn Resorts provides storage space in the dealer’s lounge for the daily toke records and makes available a videotape of the counting that dealers find totally useless. Baldonado was asked about the tapes and what he discovered about them.


During last week’s testimony before the state labor commissioner, it was said that customers at the Wynn Las Vegas Resort would lay down tips for the dealer because they could distinguish dealers who wear uniforms from management employees who wear suits and ties.

“My discovery was that certain boxes had been emptied and there was no record of them being mucked (or sorted),” he said. “The camera angles were bad. There were two or three cameras. Even the best angle couldn’t determine
what the toke count was and you couldn’t tell what color certain chips were. It’s just not a clear picture of what’s going on down there.” Likewise, Kastroll said the tapes were a joke. “It was a really grainy video, it wasn’t even color I don’t think and I had a real hard time seeing from the angles,” she said during a lunch break on the third day of testimony. “ There were multiple angles, but each one of them was bad because of the body position of the guy counting the money.

It was very hard to see difference in value, denomination or grand total of the monies because as dealers when we usually count racks of money, when they bring a fill to our table, we’re counting it from less than a foot away, right under our noses and in front of our eyes. That’s how we verify money. To verify money from across a room and through a video camera, that’s just ridiculous. How are we supposed to verify anything? “The other issue is even if we counted the money, how do we know the accuracy of the division of the monies because we are not involved at all in the paperwork aspect of man-hours and division of monies.” She also mentioned incidents where there were “obscure sheets” of daily toke records that had amounts — $6,000, $4,000 and $1,500 – in certain places on the sheet, but then they weren’t reported elsewhere on the same
report.

“I called payroll and asked if they’d please explain and give me a simple answer, but they went around and around with me,” Kastroll testified. “I still have no answer from the house what these mystery monies are.” In addition, Baldonado added fuel to the controversy over the toke chip count and the denominations of chips. “I’ve heard from certain dealers that they’ve dropped yellow ($1,000) chips and supposedly they dropped 50 of them (on a shift) and when they counted them only 30 came out,” he said. Other dealer suspicions that could account for low toke totals at the Wynn Resort center on the comingling of tokes from the Wynn Resort and the Encore, both owned by Wynn and his Wynn Resorts Limited.

Not only are the unmarked and unnumbered toke boxes for each casino the same – solid brown metal boxes with identical measurements and the same locks on top – but so are, according to dealers, the toke collection boxes in the podiums that are taken to a count room where the possibility exists that numbers from chip counting could be mixed up or transposed between casinos. Further confusion in the toke totals could occur if the chips aren’t mucked properly, as Baldonado noted for the record, which would make a determination from which casino the chips came from impossible. Kamer, the Wynn attorney, had a list of 15 witnesses ready to be called, but had to regroup
his defense after the first witness he called was dismissed without saying a word.

John Hinchliff, general manager of the McCormick and Schmick’s restaurant in Las Vegas and chairman of the Nevada Restaurant Association, sat patiently in the witness chair for about 15 minutes while attorneys on both sides argued about Hinchliff’s unspoken testimony that required a decision by Labor Commissioner Michael Tanchek. Attorney Leon Greenberg said the NRA chairman had no knowledge of the casino tokes policy and for that reason he should be excluded from giving testimony, but the Wynn attorney disagreed, bringing in the importance of Nevada Revised Statute 608.160 – it says it’s unlawful for anybody to take all or part of any tips given to their employees – that is at the heart of the tip-sharing issue.
 

“160 is a tip issue of statewide importance to other industries,” Kamer argued. “Next to gaming,
it’s the next largest industry in Nevada, the restaurant industry. It’s absolutely fair for the chairman of the Nevada Restaurant Association to come and testify about the (tipping) practice in Nevada.” At first, Tanchek sided with Kamer saying “the case deals with Wynn and the dealers there, but it has implications far beyond the casino floor,” but he quickly took  an   unexpected  recess  to

 


Hearings into a tip sharing policy instituted  by the Wynn Las Vegas in Oct. 2006 will resume Oct.5 following four days of testimony last week that saw witnesses from both the dealer’s and management’s side talk about policies and procedures at the hotel’s casino.

confer with his deputy attorney general. Upon returning, Tanchek said that since two other previous witnesses had testified about tipping practices in other industries, such as cosmetology and restaurants, this was a “camel’s nose under the tent” problem and he was granting the motion to keep Hinchliff from testifying.

With that, and a five-minute pause, Kamer called his next witness, Reem Mikhail, a former floor supervisor and pit boss at an Egyptian casino before joining the Wynn Resort. She started as a dealer when the casino opened in April 2005 to December 2007 when she left dealing to become a floor supervisor, a position that morphed into a CSTL upon the tip policy change. She testified about her duties and that she received tips directly from customers. “In Egypt, they handed tips to floor persons all the time,” she said, and then talking about how often she received tips at the Wynn Resort, replied,

“Five or six times every day. They’d give me $5,000 chips.” Attorney Greenberg asked her how many times she’d received a $1,000 or more tip as a CSTL. “More than 10 times? No? Let’s say more than 20-30 times?” he asked, to which she answered, “Yes, they give you at least a $1,000 chip.” Kamer attempted to show Mikhail, as a CSTL, was on the same level as, or an equal to, the dealers when it came to customer interaction and service, which could conceivably justify her receiving a share of the tips, but under cross-examination by Litman, Mikhail affirmed that she thought of herself as “a leader
of dealers” and a “supervisor of dealers,” which would connote a management position ineligible to receive tips.

Other witnesses during the week were Josephine (Quyngoc) Tang and Joseph Cesarz, two of the four complainants in the case, and Wynn President Andrew Pascal. The four days of testimony drew to a close last Thursday and was continued when Wynn Resort lawyers still had 10 witnesses to call and the dealer’s attorneys had five rebuttal witnesses scheduled to speak. Both sides will reconvene at the Sawyer State Building on October 5 and will go to October 9 and, if more time is needed, will resume again for as many as five days starting October 19.

During the course of testimony in a state office building hearing room – one dealer said “the tension is so thick in this room you can cut it with a knife” – dealers sat in the open audience area with chairs facing the proceedings while floor supervisors, other casino management workers and Wynn loyalists sat behind the resort’s attorneys along the wall. Few, if any, words were spoken by either side to either side as they were forced to share one door to the hallway. Most of the testimony was nuts-and-bolts information about casino practices, but once in a while, some emotional references to what’s happening on the casino floor came out.

Mikhail, the Wynn CSTL who had attended a team leader meeting two weeks ago to hear a discussion about the commissioner’s hearing, told Tanchek, “Out on the casino floor there’s already a lot of animosity” and in regard to the management meeting of which she did not share information with her dealers about, she said, “That’s a very sensitive issue. There’s a lot of hate from the dealers and I don’t need any more hate.” Cesarz was asked his opinion whether he was opposed to sharing tips with the team leaders.

“I wouldn’t be here if I wasn’t opposed,” said the 30-something dealer who sat in the chair coolly but was ready to pounce. “I don’t believe management should get a part of the tokes. In all the places I’ve worked, I’ve never seen that. I have no problem sharing tips with the CSTLs, but I do have a problem with them taking food away from my mouth to feed theirs.”

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