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Before we opened Resorts International, I was on loan to the New Jersey Legislature, in drafting the Casino Control Act. I was about to propose, that AC casinos not allow tipping at the table games, to avoid the expected supervisor wage spiral, but my boss, Resorts President Jack Davis, strongly suggested I forget that proposal, indicating that our casino payroll costs would expand greatly. My counter was that with tipping not allowed, much of the tip, cash or chips, would be lost at the tables, and our win would increase, and that it may be not enough to offset the higher dealer wages, but we might keep supervisory level salaries under control.

I lost the argument, and dealer tips did cause a wage spiral, but even worse, our dealers, after 12 months experience, could take higher level positions at Caesars, opening 13 months later and then Bally and 3 other casinos. We also experienced many dealers that would not accept advancement, because the total pay, with tips, still exceeded a supervisors salary. At least I got the dealer tips pooled, so that the high-level table dealers shared the wealth.

That is obviously why Wynn, started sharing the dealer tips.

One tip situation, that I did get to keep under control, was in the Superstar Theater where I had higher ticket prices for stage side tables and booths, so that seating captains couldn't offer the best seats to the highest tipper.

Tipping is a delicate situation, and in some places, like Nassau/Paradise Island, the union has tips for housekeeping and pool/beach attendants automatically added to your room account. This issue can get out of control, so needs to be considered from all sides.

Best of luck to Wynn Resorts and the employees involved.