Casino Accounting and Bankroll
Casino gaming is a cash-sensitive business requiring stringent controls and procedures to permit proper recording of gaming revenue and asset accountability.
The licensee's system of internal controls must be designed to ensure that the following objectives are met: safeguarding of assets; reliability of financial records; transactions executed and recorded in accordance with casino policies and procedures; access to assets permitted only in accordance with casino policy; records complete and sufficiently accurate to permit periodic comparisons of on-hand versus book values.
The system of internal controls established by the casino must necessarily establish levels of individual accountability as well as create forms and documents to provide an audit trail of all transactions.
By designating performance requirements and responsibility for completing forms and documents, management effectively creates levels of accountability.
When the audit chain is broken, it is relatively easy to identify individuals responsible for violations of procedure.
The casino bankroll is the minimum amount of funds required to operate the casino on a daily basis.
Regulatory agencies in the states of Nevada and New Jersey utilize an elaborate formula in determining the minimum bankroll requirement for each licensee.
Once the bankroll has been determined, the licensee is subjected to audit by these regulatory agencies to ensure that the bankroll requirement does not fall below the established minimum.
The casino bankroll is entrusted to the custodianship of the main vault or main bank for safekeeping and disbursement to the various casino revenue centers.
The stipulated amount of the opening bankroll is operated as an imprest fund allowing for a shift-by-shift accountability process.
The cycle of bankroll accountability is based on casino shifts, where each shift is responsible for summarizing financial transactions affecting the bankroll.
This simply means that the opening bankroll amount must be the same at the beginning of each 24-hour revenue cycle, the revenue cycle consisting of the graveyard, day, and swing shifts.
During the cycle, transactions will occur causing increases or decreases to funds.
However, at the conclusion of the cycle, the fund or bankroll must be restored to its original amount by withdrawing excess funds (bank deposit) or restoring funds to achieve the opening bankroll amount.
Within this procedure, the following forms merit discussion: the main bank inventory form; the casino revenue summary form; and the master game report form.
The main bank inventory form serves the following functions: it indicates the actual amount of bankroll inventory carried by the vault on a shift-by-shift basis; it serves to transfer inventory responsibility from one shift to the next; and it provides a detailed analysis of every inventory category carried.
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