Organizations have lost approximately 5% of their annual revenues to employee fraud and abuse – which makes understanding issues that lead to internal fraud abuse and learning how to prevent it critical for those in hospitality, especially gaming.

According to Black’s Law Dictionary, fraud is ‘… all multifarious means which human ingenuity can devise, and which are resorted to by one individual to get advantage over another by false suggestions or suppression of the truth, and includes all surprise trick cunning or dissembling, and any unfair way by which another is cheated.’

Casinos are particularly susceptible to fraud as they are a cash business, making them ideal targets for the occupational and outside fraudster, thief and cheat. In fact, no other industry trades in cash the way the casino industry does with the exception of banking and finance industries.

Reasons the Gaming Hospitality Industry Are More Vulnerable to Fraud

And according to NAGRA, or the North American Gaming Regulators Association, there are certain conditions that make a gaming hospitality environment particularly fertile grounds for occupational fraud, such as: 

  • Internal controls are absent, weak or loosely enforced 
  • Employees are hired without due consideration for their honesty and integrity
  • Employees are poorly managed, exploited, abused, or placed under great stress to accomplish financial goals and objectives
  • Management models are themselves corrupt, inefficient, or incompetent
  • A trusted employee has an insolvable personal problem, usually of a financial nature, brought about either by family medical needs, alcoholism, drug abuse, excessive gambling, or expensive tastes
  • The casino has fallen on hard times (i.e., is losing money or market share) or its property is becoming passé or market share), or its property is becoming passé
  • Internal audit resources are inadequate
  • Security resources are inadequate

With one or any combination of such conditions present, the opportunity for employee fraud increases exponentially, from the cage, to the front window area, to the main bank area, to the change bank area, to the count teams – both hard and soft, to games of chance and table games, to scams involving the dealers.

In fact, a study of 39 major casinos found 17 instances of fraud involving players’ club operations that were conservatively estimated at over $3 million in losses during a two-year period.

What Casinos Can Do To Protect Themselves Against Fraud

Through its leading eLearning compliance training, Casino Essentials by Vector Solutions helps protect the gaming industry from financial crimes.

A full suite of training solutions includes online courses, an easy to use LMS platform, AML – or anti-money laundering –  certification and top-of-the-line conferences, seminars, and workshops.

Casino Essentials provides casinos the best online training solutions and customer support available with …

1. Online Courses

We now offer over 100 online courses. AML Title 31, Responsible Gaming and Sexual Harassment Prevention just to name a few. All our courses are customized to meet Casino compliance requirements and regularly updated to ensure compliance with Federal regulations.

2. LMS Platform

Train employees, test their knowledge,  track their progress, review reports and print certificates of completion all from one place. Many companies are using our Learning Management System to save thousands of dollars in expenses while reducing the risk of fines and penalties.

3. AML Certification

Casino Essentials founded the Institute for Certified Gaming Professionals, also known as ICGIP. ICGIP will coordinate casino industry efforts to ensure compliance and operational competencies with subject matters such as Anti-Money Laundering.

4. Conferences

Compliance through events, such as conferences, seminars & workshops.

At Vector Solutions, we’re proud to lead compliance training to protect against financial crime with 24/7 online training, classroom tracking, real-time training reports, compliance with federal regulations, unparalleled support, multilingual course options, and so much more.

Contact us to request a free demo today.

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