Rex

Hoping for a Wynn Loss

July 12, 2009

For the last couple of years, the Wynn tip stealing scheme has been a controversial subject, and late last week new fuel was added to the fire.

On Thursday, three dealers filed suit in U.S. District Court seeking to have Steve Wynn’s “tip sharing” policy stopped.

For those of you unaware of this particular policy, it’s very simple:

When you tip a dealer at a Wynn property, 15%-20% of that tip is confiscated and kept by resort management.  This includes the pit boss who’s principal job is to keep a close eye on you to make sure that you aren’t doing anything advantageous to yourself.

Wynn Casino

Wynn Casino

Wynn Casino

Wynn Casino

When it comes to gaming tables, a tip is a voluntary token of appreciation.  A gift.  A gift that I do not have to give.

I am not a lawyer, but under every tenant of common law of which I am aware … once I give a gift to someone, the gift then legally becomes the property of that individual.  The only time when this is not the case is if I have stolen the property, but my money at the table does not meet this definition.

If I am free to walk away with it, then I am free to transfer the property unencumbered.

Somehow, some way, Las Vegas has managed to eliminate this basic tenant of property law.

Between tip pooling and tip stealing, table gratuities in Las Vegas have devolved into a enormous clusterfornication.

At Las Vegas gaming tables, you don’t really tip the dealers.  You tip the house.  The house ostensibly gives your dealer some of your tip, but you have zero control over exactly how much this is.

This begs the question … what’s the point of tipping at all?

It’s a good question, and one which I am having a hard time answering at this point.

Your tips are not gratuities anymore.  They haven’t been for some time.  They are salaries.  Your tips are arbitrary gifts to shareholders.  Tips are accepted by the corporation under the auspices of a “token of appreciation”, although the reality is that they really represent nothing more than a justification to keep base salaries low … and thus profits high.

The general thinking is: “If the customers will pay the dealer’s salary … we won’t have to.”

This is also exactly why Wynn instituted his tip stealing policy for pit bosses.  Steve Wynn simply does not want to pay resort management more money out of his own pocket.  He wants you to pay for their raises out of your pocket … voluntarily.

The entire tipping debacle has gotten to the point that I will readily admit that I have begun tipping less.  When I tip these days, I feel like a tool.  I feel like an enabler.  I feel like part of the problem.  When I push a couple of chips to the dealer every ten hands or so,  I only ensure that the current system stays in place.  I’m not helping anyone other than the corporate bean counters.

It’s not just me that has become less enthusiastic about tips, though.  The dealers seem to be becoming more laissez faire toward them as well.

While a whale tip will still generate some excitement, the dealers don’t visibly care all that much about standard-sized tips anymore.  They are acutely aware that they will receive only a small fraction of any particular tip, and you can see it on their face.  They react almost instinctively.  They tap the chips on the table twice, say “thanks”, then drop them into the toke box … often without eye contact.

They simply have few incentives to work for tips anymore.  They don’t really like their jobs or their employers either.

I really can’t say that I blame them.

Lest the same tired arguments get dragged up, the answer is no.  The dealers cannot just get another job if they don’t like it.  Along with the “America, love it or leave it” slogan,  the “just leave your job if you don’t agree with their policies” is another common refrain that exists only to illustrate the intellectual inferiority of the American animal.

First of all, there are few other jobs in Las Vegas.  Second of all, without money, you probably can’t move anyplace else to find one (especially if you have a mortgage).  Third of all, if you quit, you are not entitled to unemployment compensation.  This means that you and your family may starve.  Fourth, you will lose all of your health benefits, and unless everyone in your family has a perfect bill of health … you will either be bankrupt or dead in short order.

It’s the prototypical rock and hard place.

Lack of real healthcare has led to lifelong indentured servitude in this country, which is why the status-quo is vehemently against any efforts to allow universal health access.   A frightened employee is an obedient employee.  As long as you are afraid of losing your health coverage or are afraid that you will not be able to eat, you will do whatever your overseer says.  And thus, most people do.

The fact is, for most people, the courts are the only thing standing between them and one authoritarian corporate employer after another.

For those unfortunate enough to have been reading my articles for the past couple of years, you will know that two years ago when this first became an issue, I wholeheartedly sided with the dealers and I continue to do so.

Should these dealers lose all of their cases, tip stealing will spread to the rest of Las Vegas.  Like the frog in the boiling pot, it may take awhile, but it will happen.

Armed with a favorable court decision, accountants for every corporate casino will sit in the boardroom and ask “Hey, Wynn is legally stealing tips to pay salaries … why aren’t we?”

When this happens, dealer morale will go down even more, appreciation for your tips will be even less than they are today, and the “Vegas experience” will continue its retreat into mediocrity.  Superior employees expect a living wage, therefore, service will decline as dealers who vocalize their discontent will be replaced with less demanding, less intelligent, less experienced employees.

We’ve already seen this in the cab industry.  Good cabbies who speak out against injustice are fired, and are replaced with shysters who don’t know the city, can’t speak English, and would just as soon spit on you as they drive you to your destination.

Unless you want the last guy who drove you to the airport dealing your next hand of Blackjack, you better hope that the dealers win this round in District Court.

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6 Comments »

  1. Written by tully on July 12, 2009 at 4:07 pm

    There has been mention that the impetus for this was the fact dealers made more than management back in the glory days when Wynn first opened. That’s certainly not any justification, but may well have been what prompted this scheme.

    I’m guessing the dealers aren’t making anywhere that much now, and didn’t in 2008 either. Having to give some of that money to management just stings even more at this point.

    I dislike the entire casino tipping culture, outside of restaurants, bars, and hotel housekeeping—-employees where it is customary to tip anywhere you are in the US. I don’t want to hand a buck or two to every casino employee doing jobs that their employer should pay them sufficiently for, just because the casino won’t do so.

    Especially when those employers have been building billion dollar edifices to themselves.

  2. Written by Rex on July 12, 2009 at 4:12 pm

    I’ve no doubt that the dealers make more than management, but that’s not the dealer’s problem. They don’t set the pay scales.

    If Steve is bothered by the low pay of management, he is more than welcome to raise their salaries.

  3. Written by GeorgeX on July 13, 2009 at 9:52 am

    Would you use the same logic to argue that waitresses in a restaurant should not ever be required to give a percentage of their tips to be shared by the hostess, busboys, and cooks ?

  4. Written by thlf on July 13, 2009 at 12:15 pm

    Not saying I agree with tip stealing but paste the link in below and it shows even with the economic times the dealers do not make bad money. This is the daily average per dealer at the property’s listed.

    http://www.thedealersnews.com/backIssues.htm

  5. Written by MrCdnVegas on July 14, 2009 at 10:48 am

    Rex I disagree that you can’t “just leave your job if you don’t agree with their policies”

    I grew up in a resot town. The majority of all the jobs in that town are service based, although not casinos, it is hotels, vacation properties, and retail. There is little to no “University” required jobs there. I had to pool tips, work split shifts, weekends, evenings, and your base wage is 25-50k a year for full time. The trade off was I lived in a place with great weather, lakes, and a smaller city.

    BUT

    It sucked to make that little, everyone all got the same tips (because it was a pool) no matter how hard you worked, and the work schedual was crappy too. My choice was to get a better education, move to a different city, and get a different job. It was not easy, I racked up student loans, and ate KD more times than I care to remember. BUT I DID IT.

    Now although I don’t know for sure I have heard that Wynn dealers make around 90k per year.

    Now if it were me, I would say that ain’t so bad even if I have to share tips. As well I would say if you don’t like it change casino’s, or find a different job path. Would it be hard, YES, can it can be done.

  6. Written by Rex on July 14, 2009 at 4:06 pm

    I get where you are coming from, but I don’t think it’s nearly that cut-and-dry for established adults.

    I could do whatever I damn well wanted when I was 22 years old, and so could most people … but if you have a mortgage, a health condition or a sick family member, and kids to feed in a recession … your ass isn’t going back to college. Nor should it. You’ll likely have no health insurance and little income. The only “responsible” thing to do is try to stick it out at your job.

    Even if you do let everyone starve while you go to college (for whatever reason), you’ll be saddled with student loans and the extra income you make after graduation will go toward the “education” you probably could have obtained from a couple of good books from the library.

    If you’re a youngster who can crash on someone’s couch, I agree with you. Travel the country until you find the job for you. Anyone with any real responsibilities, roots, and dependents is kind of stuck.

    You can’t just sell your house in a demolished housing market, pay tens of thousands of dollars to move across the country, and take basket weaving at Harvard.

    As far as the comments about the dealers making a lot of money, I’m not sure that it is relevant.

    It’s like saying it’s okay to steal from rich people. In some cases, maybe it is … but as a general rule, probably not.

    Wrong is wrong whether you make $9,000 a year or $9,000,000 a year.

    I don’t think people should have their rightful property confiscated by an employer.

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