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Netgambler-November 4, 2000
Do Casinos Cheat?
The implicit bargain, when you put your money down in a casino, is
that the game is being run honestly. When you play in a well
regulated, competitive gambling venue like Nevada or Mississippi or
Atlantic City, you can be 99.99% certain (nothing is 100%) that the
games are being run in an honest manner with strict adherence to the
posted rules. The large corporate entities that run the casinos have
too much to gain and far too much to lose not to run honest games.
The player's problems begin when he ventures off the beaten path.
There are over a hundred casinos operating on Indian reservations or
offshore cruise ships that are not regulated by any governmental
authority. It is not my intention to condemn all of these venues.
Most of them are 'honestly' run and give the player a fair return.
The possibility remains, however, for cheating by these casinos,
mainly because they are not accountable to an outside authority and
most of them have no local competition.
The casinos I am now referring to are not operated by large corporate
entities. Many of them have become large commercial enterprises owned
and operated by very small indigenous tribes with little experience
in business or gaming. Oversight is handled, in many cases, by
local "tribal gaming councils". In other words the tribe owns and
operates the casino, sets its own rules, and handles its own
oversight. Sometimes you will even see the "tribal gaming council"
office right next door to the casino itself. This situation has the
potential for tremendous abuse. At best the player cannot expect an
unbiased adjudication of any dispute with the tribal casino.
What constitutes cheating? It obviously means different things to
some casinos. Players used to 95%+ slot payouts in Vegas and Atlantic
City might be stunned to discover what the true returns were at
Indian casinos or even the government owned casinos in Ontario,
Canada. They are saved by the fact that these venues do not publish
their slot payouts. In fact these percentages are a very closely
guarded secret in these non-competitive environments. Is keeping the
player ignorant of the facts cheating? They certainly could not get
away with it in Nevada or New Jersey.
Self-regulation also leaves the door open for lower standards for
employees. A gaming licensee (which allows an individual to work a
casino) is a prized possession in Nevada and is not given to people
with questionable backgrounds. Indian casinos cannot be so choosy.
Many times they end up with workers who may be more inclined to skim
a little from an unsuspecting player or even from the casino itself.
How could these cheats manifest themselves on the gaming floor?
Employees can scam players in a variety of ways, especially players
who are inattentive or a little drunk. Security is supposed to make
this an unprofitable proposition but, once again, is the security of
a small Indian casino in northern Wisconsin or Northern Michigan
comparable to that of a Las Vegas casino?
Cruise ships that ply international waters are another venue the
player should be wary of. Gambling on these ships is offered as a
diversion, not as a primary activity, with commiserate lax security,
regulation, etc.
Please don't send me emails defending the Indian casinos and cruise
ships. I am not claiming that these venues are inherently crooked or
lax. They try to enforce the rules as best they can and no Indian
casino or cruise ship has been accused of cheating or defrauding
players. I am simply informing you that the possibility for being
cheated is better at these casinos than in Las Vegas or other large
gambling centers. As in any consumer transaction let the buyer
beware, just be more wary in these places.
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"I have no doubt that, if there wasn't such a thing as gambling
licenses, all casinos would cheat."
--VP Pappy