The casino industry has a his-tory of being a high-risk environment for fraud and scams due to the fast and furious cash activity, even though it is controlled and protected by high-tech surveillance and state-of-the-art computer systems. As technology has changed casino operations, the nature of fraud has evolved to take advantage of weaknesses.
Internal controls are critical to prevent fraud and to detect fraudulent activity after the fact. A number of decades ago, I was discussing some potential theft by employees with a casino owner. He responded by stating that someone is likely stealing from him right now, and that all he wants to do is limit the dollar amount of the theft. Internal controls do not consist of a 200-page document that you require employees to read and then sign the last page. They consist of a series of controls that are dictated by management and enforced by management. The key to success is establishing processes where multiple individuals (preferably three) must be involved to commit fraud AND, if it occurs, there is a high probability the audit procedures will detect it.