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Internal Audit: A Meister on Casino Fraud

The flaunting activities and financial stream that flow in a casino business can foster fraud and deception that can hurt the financial business of a casino. Because of the fast paced operational structure of a casino, simple details such as minor theft can occur without being detected. Theft and fraud can bruise the casino's financial operation and it would be difficult to trace the villain especially when the crime is committed by the casino's trusted employees and staff themselves.

While surveillance cameras are effective means of detecting fraudulent and cheating activities and became an effective means of deterring illegal operations from taking place in a casino establishment, more is required in terms of financial monitoring procedures employed in a casino's operations. This would require for an efficient and thorough internal auditing procedures to be carried out that will scrutinize tangible documents such as accounting documents involving marketing operations of a casino establishment, its foods and beverages, the complimentary bonuses in the form of monetary funds and the financial operation of its hotel and business offices.

These areas of casino operations are great opportunity for internal auditors to use their skills and knowledge to fight and prevent casino fraud from taking place. While the training required for a surveillance staff to monitor fraud involving casino games may be extensive such as mastery of a specific casino game rules, the job of internal auditors are not as stringent with these areas compared to the skills required to monitor an actual casino gaming tables and slot machines from fraud and cheating.

The common fraud-ridden areas in a casino are on its promotion and marketing operations. This is because casino spends millions of funds for promotional marketing strategies that will attract more customers to their establishments. Because of this nature, it serves as a pitfall that can harbor the occurrences of cheating, falsification of documents and manipulation of the casino operational system on marketing accounting. Without a thorough review and auditing of casino financial statements, documents and procedures a crime can continue to take place without the casino management even noticing it.

Most of the villains involved with the commitment of fraud affecting the casino's financial operation commonly involve the casino staff, managers, executives, vendors, the casino's customers and its dealers. Some fraudulent activities can be from complex to simple falsification of casino documents. Some perpetrators of fraud may work alone or are team together to steal money from the casino.

Casino operators usually employ third party and independent auditing firms to conduct auditing scrutiny to all the casino's financial transactions and documents. Financial irregularities can be traced through internal auditing procedures which cannot be caught and detected by a mere surveillance cameras and roving surveillance staff which may be effective when monitoring fraud taking place among players and casino games.

The auditing power can see through the internal structures and procedures of a casino which are not obvious to a simple observation and surveillance procedure. Internal auditors can identify any lapses from the financial system employed by a casino which can open the opportunity to commit fraud. Internal auditors possess the skills to suggest an effective financial system that can prevent casino fraud from taking place. The intervention of an auditing team can help a casino establishment less vulnerable to fraud.