Casino business basics
Like any other enterprise, casinos focus on profit. However,
their undertakings are varied and diverse than any other
organization. The various activities in which a casino indulges
include gambling, restaurants, hotels. Gambling in itself is
quite complex comprising of various card games, machines and
table games. The conversion of money to chips, given the large
inflow of cash and the threat of thefts, is an art in itself.
Apart from all this there is a lot of manpower involved. Being a
licensed body, it is subjected to tax as well. To add to all
this there is periodical auditing which determines the
continuance of the license. Thus, opening and monitoring a
casino requires a lot of homework to be done.
Every casino, like any other organization, has a hierarchical
structure. The top position in a casino can be of the owner or
the Board of Directors. Generally, the casinos have some lower
managers to take care of the various operations of the casino.
These include the Manager of Finance, Manger of Food and
Beverages, Manager of Casino Operations etc. the number of
departments and managers depends on the size of the casino and
the range of activities undertaken by it. Due to the huge cash
flows, the accounting department of the casino is distinct from
other departments. It has its own structure comprising of five
levels which includes the clerks, cashiers, vault employees,
financial managers, accountants and internal auditors.
An important aspect of the gambling world is law. Information
regarding controlling bodies and legislations are very important
while administering a casino. These enactments and regulations
provide licensing procedures, gaming rules etc.
Like all other enterprises, accounting forms an integral part
of the Casinos. Accounting, here aims at proper and exhaustive
recording of all cash flows, prevention of theft while recording
these transactions and analyzing the data for decision making.
Fulfillment of all the above objectives is quite difficult as
all the transactions are reported once a day and the bulk of
this transaction is enormous. Fair accounting helps in an
effective cost profit analyses of the casino, thus leading to
better decision making. The revenue generated through the casino
is an important source of income for the government. Tax acts
as, both, a deterrent for gambling a source of income. Tax is
imposed at the federal as well as the state level.
The accounting process of the casino is evaluated by means of
auditing. While regular internal audits are important, statutory
audits are also conducted by gaming control agencies. Internal
audits primarily help the casino to prevent cheating. Fraudulent
activities can cost a casino its license, not to mention the
goodwill and customers. independent auditors check the
functioning of the casinos, especially when the casino trades
publicly in stock. Most of the financial activities of the
casino involves certified public accountants.
Casinos are nowadays diversifying and evolving. Nevada and New
Jersey are now becoming famous holiday spots for all and are no
more mere gambling hubs. This diversification can prove to be
profitable for the business only when the owners and proprietors
are well aware of their decisions and their implications. Hence,
thorough knowledge and information is a pre requisite for any
profitable casino.