The $5 million casino theft
Let’s take a look at the topic of casino theft. Casinos handle plenty of money and sometimes this can lead to employees giving in to temptation. Over at the Miccosukee Tribe Casino, a four-year scam took place that led to huge sums going astray. Initial reports left the owners believing that they’d lost around $20,000 but now that amount seems to be much higher.
With the FBI and an internal auditor taking a full look. It now transpires that the total amount stolen was over $5 million. Is this a one-off and just how did this team of thieves manage to walk away with quite so much?
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How thieves used ghost credits
The same at the Florida casino involved a team of 8 employees and ran from 2011 until 2015. Reports show that these employees created credits out of nowhere and then simply redeemed these for cash in the casino. Initial enquires suggested that less than $17,000 had been redeemed in cash. But a closer inspection soon showed that the losses were much much bigger.
An internal auditor was brought in in 2017. As they carried out their investigations, they uncovered that the true amount stolen was huge $5, 283, 637.50. This shows that these employees certainly enjoyed a successful four-year spree until the behaviors were uncovered.
Why is this casino theft making the news now?
Given that this all took place some time ago, you may be wondering why we’re revisiting it now. Well, it’s down to the fact that the casino is now set to sue its insurers who have failed to pay out over this theft. Initially, the tribe decided that there was no need to file a claim. The amount stolen was believed to be below the excess of $50,000 so a claim seemed pointless. However, when the full amount was realised, the decision was made to recover losses via the insurance policy which provided $5 million in cover.
After months of fighting and battling, the insurer reached a decision in 2021. They claimed that the note of loss given by the casino wasn’t timely and so there was a refusal to payout. With $5 million at stake, understandably, the casino is refusing to take this laying down and is now in the process of suing the insurer. The tribe claim that it acted in accordance with the law and within the timescales that were dictated by the FBI and the internal auditor.
Employee theft is a real concern
While this theft grabbed headlines, mainly thanks to the $5 million involved, the reality is that casinos are often targeted by employees and around 5% to 7% of revenue is lost each and every year. Knowing how to reduce the levels of theft in an organisation can help to ensure that the business survives but casino operators don’t always know what they’re looking for.
Casino theft – Why do casino employees risk stealing?
Just like anyone else who steals, casino employee’s actions are based on three aspects:
- A motivation to steal despite any risks
- A rationalization that allows them to justify the action
- An opportunity to carry out the act
While casinos may have little control over points one and two, they can certainly take steps t ensure that point number three is locked down.
Casino theft – How can casinos identify a potential thief?
When it comes to casinos noticing employees who may be acting dishonestly, there are a number of warning signs to be aware of. These include:
Resisting change
If you ever try and move an employee from one area to another, or change their routine in any way, most will go along with this. Sure, they may have reservations but they will tend to respect the boss-employee relationship and get on with it. A dishonest employee will act differently. This could include resisting a change such as being moved from the blackjack table to, for instance, the roulette, baccarat or craps table.
Fearful of missing out on their opportunity to continue stealing, these employees will resist any kind of change. They will come up with an array of reasons as to why they shouldn’t be moved and it’s all about protecting their stealing operation.
A lifestyle beyond their means
You’re paying your people and you know what that sort of money means in your area. If one of your employees is suddenly upgrading cars, splashing out on expensive jewellery or anything else, the alarm bells should be ringing.
Vocal about financial difficulties
Some employees will be very open and talk about the financial issues that they face. Now, struggling financially doesn’t make a thief but research shows that those who talk about this the most are far more likely to take advantage of any opportunity to steal.
No time away
The majority of your employees will work hard for you but they’ll also look forward to their time off. Whether this be days off or vacations, employees will usually enjoy a good work-life balance. Those who never seem to take any time away may well be the ones stealing from you. They dare not take time off as there’s a good chance that any scam may be discovered by anyone that covers their role in the meantime.
Family issues
If your employees are going through relationship breakups then there’s a good chance that there are financial implications. Certainly, when going through a divorce, fees for lawyers can quickly mount and this can lead to an employee grabbing any opportunity that presents itself to boost their bank balance.
Final thoughts on casino theft
The employee theft over at the Miccosukee Resort and Hotel has grabbed headlines as the $5 million stolen is certainly substantial. However, it is now making headlines again because of the issues being faced with the insurance claim. The hope of the tribe is that this issue can be settled and that these losses can be recovered.
This story serves as a timely reminder for all casinos. These establishments depend on their staff to provide a great experience for customers but these very same people can also cause extreme damage. All casinos need to have an awareness of the warning signs displayed by potential dishonest employees so that they can take the necessary steps to protect themselves.
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