August 25, 2006
Incentives Matter: Vegas Casino Workers Edition

Excerpts from a news item via Drudge:

A restructuring of how Wynn Las Vegas manages its casino soon will leave many dealers there a little lighter in the wallet.

Starting Sept. 1, table game supervisors will share in the tips earned by dealers, a move gaming industry insiders said is unheard of along the Strip.

A widening disparity between the wages earned by dealers and casino floor supervisors caused the Strip casino to alter the structure of its table games division, Pascal said.

Starting next week, pit bosses and floor supervisors will be known as "casino service team leaders." Their responsibilities will cover the operations of specific table games, including game protection and customer service. The new plan will be phased in over several weeks.

Pascal said that Wynn Las Vegas dealers are the highest- paid dealers in the city, averaging about $100,000 per year in salary and tip earnings. But the employees supervising dealers average about $60,000 a year in salary, Pascal said.

"Because of our property, that disparity has gotten wider," Pascal said, citing Wynn's emphasis on high-end play as one reason its dealers' tokes are larger than most Strip properties. "There was no incentive in the division to advance and grow.

"Everybody wanted to become dealers," he added.

Dealers who split tips by shifts now will share those tokes with team leaders and supervisors, who also will receive a boost in base salary.

The result, Pascal said, will be dealers earning an average of $90,000 annually while supervisors will be paid $95,000.

Posted by E. Frank Stephenson at 12:52 PM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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