Case - Analyzing Casino Money-Handling Processes

Only available on StudyMode
  • Download(s) : 705
  • Published : October 5, 2010
Open Document
Text Preview
Case: Analyzing Casino Money-Handling Processes
Bartley D. Corbin
Webster University

Author Note
This paper was prepared as partial fulfillment of the requirements for BUSN 6110, Term Fall 1, 2010 taught by Professor Gary Sample.

Abstract
This case study is from Chapter 6 of the text on page 183. It is an analysis of the casinos money-handling processes. The process begins with retrieving the money from the slot machines and is referred to in the gaming industry as the drop process. The hard count process is the second phase of the process and is performed at a designated time known to gaming regulatory authorities. Following the hard count process, each drop bucket is emptied into the weigh scale holding hopper. At that point the information from the identification tag for the specific slot machine number is entered into the weigh scale computer where the weights of the different denomination are converted into specific dollar values. Next, at the canning station, the coin rolls are placed in metal or plastic cans that hold specific dollar amounts based on the coin denomination where they can be easily counted. These totals are recorded on the weigh/wrap verification report. When the wrap portion of the count is completed and all of the rolled coins have been canned and stacked, they are manually counted by denomination. These tallies are verified against the previous count and dually recorded on the weigh/wrap verification report. Variances that exceed plus or minus 2 percent are investigated. If no significant variance exists, then all team members of the hard count team sign the weigh/wrap verification report. The drop is then processed into cage accountability. The cage cashier performs and independent count and if everything balances, the main bank cashier signs the weigh/wrap verification report. Once the drop is accepted into cage accountability, it is at this point that the actual slot gross gaming revenue is recognized. The conclusion discusses the latest technology in the casino gaming industry that helps speed up the revenue recognition process through automation.

Case: Analyzing Casino Money-Handling Processes
This case analysis really is quite simple from a management perspective. Management is considering the purchase of a second coin wrapping machine. To make the proper buy/no-buy decision, management has asked for answers to the following questions: Q1: How long should it take to complete the drop process for 300 silver dollar slot machines? Q2: How long should it take to complete the hard count process for 300 silver dollar slot machines – assuming that each slot machine has an average of 750 silver dollars when it is emptied? Q3: The casino is considering the purchase of a second coin wrapping machine. What impact would this have on the hard count process? Is this the most desirable machine to purchase? Question 1

To do this properly, we must first design the workflow processes to map out and provide a clear timeline of each of the activities involved in each process beginning with the drop process lifecycle. See Figure 1 Below.

Figure [ 1 ]: The Drop Process Workflow

So, to answer question 1 we must determine the amount of time that it should take to do the drop process for 300 silver dollar slot machines. See Figure 2 below to get an accurate depiction of the time it takes to complete the drop process on 300 silver dollar slot machines.

Figure [ 2 ]: Drop Process Time Workflow
Question 2
Question 2 dictates that we draw a diagram of the hard count process much like that of the drop process in Question 1. The management team would like to know how long the hard count process will take to complete for 300 silver dollar slot machines assuming that each slot machine has 750 silver dollars when emptied. Let us take a look at the process flowchart in Figure 3 below.

Figure [ 3 ]: The Hard Count Process Flowchart
So, how long does this process...
tracking img