The Bellagio Case

Key factors industry

- Highly regulated - Nevada Gambling Laws and Regulations

surveillance

extensive training of casino personnel to ensure compliance

strict monitoring and auditing of accounting

report “suspicious activities” to prevent money laundering

report cash transactions over $10,000 over 24 h period

- HIghly competitive environment - many other gaming and leisure companies

Key factors company

- Owned by MGM Mirage - locates high - value properties for building resorts and entertainment facilities

- Close to 4000 guestrooms and suites, world - class golf courses

- 2409 slots and 143 gaming tables

- offers the complete casino experience 24 / 7 - luxurious guestrooms , premier dining, etc,” must - see” entertainment attractions

Key success factors

- Separate profit centers - over half of the company's net revenue is derived from non - gaming activities (higher % than competitors)

- Ownership preferred - to control all aspects of guest experience

- Seasonal factors - slow season compensated by availability of convention and meeting facilities

- Low employee turnover - recruiting, training and retaining well qualified and motivated employees - tight personnel / cultural controls

- Distinctive marketing and promotional programs - personal contact and direct marketing

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Controls at the Bellagio

Action Controls -

• Tight security and supervision in count room;

• Very strict separations of duties

• Constant monitoring and supervision of gaming areas;

• Daily independent cash counts;

• Tight controls on recording of receipts and disbursements;

• Strict procedure to transfer cash/chips to and from non imprest funds;

• Daily reconciliation;

• Strict and frequent auditing procedures

Action Accountability -