WYNN DEALER TIP RESTRUCTURING MAY BECOME STANDARD

On Monday, Aug. 21, after a 15-hour flight from China, Wynn Resorts Ltd. Chairman Steve Wynn personally informed table game employees of a new policy that will distribute a portion of dealer tips to table game supervisors. Wynn Las Vegas President Andrew Pascal told the Gaming Wire in Las Vegas that the move is meant to address an increasing gap between dealer and supervisor pay.

"Because of our property, that disparity has gotten wider," Pascal said, noting the focus on high-end gambling. "There was no incentive in the division to advance and grow. Everybody wants to become dealers."

While dealers average an annual salary of $100,000 at Wynn Las Vegas, dealer supervisors average about $60,000. Under the new wage distribution-which be phased in over several weeks starting Friday-average salaries would be $90,000 for dealers and $95,000 for supervisors.

Additionally, pit bosses and floor supervisors will operate under the title of "casino service team leaders" and will take on new duties. To help offset the dealers' decreased income, Wynn Las Vegas will start an incentive program to allow them to earn annual cash bonuses.

Dealers commenting on the policy change on CasinoDealers.net expressed several concerns, including the short notice given for the change and the interest in treating the casino industry like other businesses.

"They say that it is because they think it's only 'right' for supervisors to make more than dealers because this is how things are in other industries," a dealer wrote anonymously. "Well, dealers making more than supervisors is how it has always been in this industry, and this didn't become the 'right' thing to do until Wynn failed miserably to make their employees happy."

Another dealer expressed reserved support for the change. "I don't agree with the way this was handled, but this was the cheapest way for management to make the floor happy without it costing the company money," the Wynn dealer wrote. "Steve Wynn emphasized that he expects near perfection from the floor staff for this big pay raise."

In one of his regular Las Vegas Review Journal columns, John L. Smith cited other concerns about the effects of the new policy, which he wrote is rumored to have been triggered by a successful high roller's granting dealers $500,000 of his winnings.

"What is truly worrisome," Smith wrote, "is the fact the change might lead to similar actions at smaller casinos where dealers make a fraction of the tokes found at the Strip's megaresorts."

Smith said that at least one dealer he spoke to cited the risks of the job as the reason for a dealer's need for tips. "If my job goes down to $60 a day, they're not going to compensate me," the dealer was quoted as saying.

Smith noted that Wynn made changes to typical Las Vegas policies before, and casino industry profits can drown out employee criticism.

"If Wynn's latest change in the Vegas Rules is successful, watch for it to become an industry standard," Smith wrote.