Agencies eye complaints by dealers at Summerlin resort

David Strow

Monday, Aug. 2, 1999 | 11:01 a.m.

The Nevada Casino Dealers Association asked state regulators to launch an investigation into the tip pooling practices at the new Resort at Summerlin after company officials rebuffed a request to change their current policy.

The petition was filed with Steve DuCharme, chairman of the state Gaming Control Board, and Gail Maxwell, acting commissioner of the state Labor Commission. Both say they have begun preliminary investigations into the charges.

The association is fighting the resort's establishment of a position known as "casino host," which encompasses the duties of dealer and floorperson. All casino hosts at the resort share in the dealers' tip pool, even if the casino hosts are in a supervisory role for some or all of their shift.

In its letter to DuCharme and Maxwell, the association says this violates state law, which says a company cannot derive a benefit from dealers' tips. The association argues that the casino host position allows supervisors to be hired at a much lower wage than normal, and thus uses tips to subsidize the Resort's labor costs.

"If this policy were allowed to stand it would undoubtedly spread to other casinos seeking to lower payroll costs and maximize their profits by tapping into the dealer's toke box," the letter from the association said. "This would cause unrest and instability in the casinos themselves, and make the job of regulating and monitoring the industry increasingly difficult for the state agencies charged with that responsibility."

The resort has said it has consulted with its attorneys and believes it is in complete compliance with state laws, since all monies in the tip pool are distributed to employees.

In an earlier letter to the association, Resort Vice President and Chief Operating Officer Jim Fonseca noted that the starting pay of a Resort casino host was $7.75 an hour, 39 percent higher than the average for dealers on Strip properties.

Maxwell said the practice of including floorpeople in the tip pool is actually common among casino workers. The legal argument used in upholding the practice is that floorpeople contribute to the overall service provided to the casino patron. Therefore, the floorperson may be included in the tokes received.

However, Maxwell pointed out that this is only permitted if the casino's "original dealers" agree among themselves to include floorpeople in the tip pool.

This condition cannot be forced on the original dealers, Maxwell said. But dealers that are hired at a later date may be required to comply with the original agreement as a condition of employment.

"It's reasonable to assume that (the player) tips all those who contribute to the service rendered," she said. "But the initial pool tipping system must be established by the tip earners, not the employer. That's what I'm trying to determine right now.

"If the employees did decide to pool tips, it's all right."

The association claims that the tip pooling policy has always been a condition of employment at the Resort.

DuCharme said he'd referred the letter to the investigations department for examination, but said the practice has occurred in the industry before and does not violate gaming regulations.

"We'll certainly review the applicable statute to see if there is a possible violation, but I believe there are other state agencies that handle personnel issues," DuCharme said.

He did say, however, that the Control Board has frowned upon the practice in the past because the board believes it encourages "tip hustling," or the solicitation of players for tokes.

"If (floorpeople) are included in the pool, they would have no incentive to discourage tip hustling," DuCharme said.