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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
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(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. |
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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.”
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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.
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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.
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“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
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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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