The Evolving Landscape of Casino Security

## Penetrating the Fortress of Casino Protection

Physical casino security extends far beyond a cursory review of surveillance feeds. This is paramount considering the diverse spectrum of threats these venues encounter today, ranging from the potential for firearm violence to intricate credit card scams.

To explore this vital facet of casino operations in depth, the recent G2E Las Vegas gathering convened a panel of specialists in casino security, observation, and regulatory adherence. This group, featuring Honoria Hebert, Head of Regulatory Conformity at the Lake Charles L’Auberge Casino Resort, and Derk Boss, a Security and Surveillance Advisor, offered valuable perspectives on the most critical challenges confronting the sector. Casino Life magazine was in attendance and presents the subsequent synopsis of the dialogue, skillfully guided by Darrin Hoke.

A central inquiry posed was how the observation unit can bolster compliance endeavors and the reverse.

Hebert stressed the shifting function of surveillance in tackling Title 31 and Unusual Activity Reports (SARs). She illuminated how, merely a few years prior, Title 31 primarily concerned record maintenance, with surveillance often being the final to be informed. Nevertheless, the situation has transformed significantly since then. Record preservation is now just one component of a much grander scheme.

If a visitor sets off several red flags in our system over a short period, I loop in my security staff. I’ll ask them to provide additional context on the individual in question and confirm my suspicions. I don’t want to bog them down with unnecessary details, as record management falls under my purview. However, I can share observed patterns, and they can reciprocate with insights and observational footage. This cooperative approach has proven instrumental in solving significant incidents.”

DB:

“We’ve transitioned from a reactive to a proactive approach. We scrutinize player information, expenditure patterns, evaluate current protocols, and collaborate with compliance. Our surveillance is targeted and intelligence-driven, not arbitrary. It’s encouraging to witness this shift where departments like compliance actively contribute to enhancing our effectiveness.”

What’s your perspective on the influence of “Customer Due Diligence” requirements on these processes? How do you envision these regulations shaping the future of security and surveillance?

HH:

“It’s noteworthy that the demand for comprehensive customer knowledge seems to be ever-increasing. Previously, in-depth background checks were primarily triggered by legal requests or high-profile incidents. Nowadays, the expectation is to possess this knowledge proactively, before any escalation.”

The true significance of safety measures and observation only hit home for me when I needed to control someone and delve into their financial affairs. Certain people deal heavily in cash, and that’s where monitoring and protection become my trusted allies, acting as our sensory inputs. I can examine documents, analyze habits, perhaps even do some online research, but observation can reveal if someone is a high-stakes player and explain their wealth. Is there anything questionable about their spending habits, artificially boosting their bank accounts and making them appear more financially active than they truly are? These methods can uncover an individual’s social circles. I’ve reaped substantial rewards from observation.

DB:
Regarding observation, we maintain a keen understanding of these individuals, arguably the best in the field. Naturally, we conduct extensive background investigations on players, examining aspects like their identification and wealth origins. I recall an instance involving a 22-year-old individual. He engaged in dice games daily, wagering substantial sums. He drove a dilapidated vehicle, raising questions about the source of his funds. Our inquiries revealed his employment at a carwash, suggesting either extraordinarily generous gratuities or suspicious activity. As it turned out, he was entangled in illicit dealings, likely drug trafficking. In the past, such funds would have simply surfaced at the gaming tables without scrutiny. Today, we can no longer afford to ignore such red flags.

High-level managers don’t desire to contemplate firearm incidents, but it’s our obligation to compel them to contemplate. Perhaps you could introduce recordings from the previous incident. You must make them comprehend this.” – Dirk Bos

**What is your perspective on the function of security during active shooter events? What about the function of observation? How can we surmount the bureaucratic obstacles to get them to recognize that this is an issue in the contemporary world?**

DB: Firearm incidents are something we must be cognizant of – in reality, we’ve become objectives. This is a perfect location to have a shooting – they desire the publicity. They yearn for acknowledgment, and what superior method than to execute it in front of numerous cameras? Therefore, I believe it’s a persistent menace that we must be aware of.

Nevertheless, I observe that individuals are not educated for this, they are not equipped. Very few of us have likely devised an active shooter protocol or strategy – what actions will you take, how will you vacate – but very few individuals have done that, and we’ve never rehearsed it. You must know your actions, and we are not adequately prepared for this.

I believe the security observation sector has to advance and declare that this is transpiring, and we need to conduct exercises. Whether anyone else engages or not, you must get the security observation personnel prepared. You are the sole individuals who can provide real-time data to law enforcement – what’s occurring, the location of individuals, where they should proceed, what’s behind that entrance.

I truly believe it’s wise to integrate new employees with education on responding to these types of scenarios. Initially, I encountered some resistance – leadership was hesitant to instill fear or unease in employees as they started their workday. However, the staff appreciated the knowledge – it was empowering for them to understand the appropriate course of action.

I comprehend that higher-ups may prefer not to dwell on these matters, but it’s our responsibility to make them – to ensure they grasp the significance. Perhaps showing them the footage from the recent incident would be impactful. I realize it’s disturbing, but they need to witness it firsthand.

We can establish comprehensive emergency protocols, but in my observation, they often remain unread until a crisis arises.

By the 25th of October, all company-issued equipment must possess the capability to scan the integrated microchip within a card. What are your perspectives on adhering to PCI regulations? How do you perceive the link between observation and safety?

HH:

To achieve PCI conformity, we’ve reached a phase demanding stricter adherence to protocols. We conducted numerous inquiries to obtain documentation regarding credit card deception – that’s when the connection between security and observation became undeniably clear to me. I could request the observation unit to review previous recordings to determine if we could pinpoint the individuals utilizing these credit cards.

Utilizing observation, we can better confirm individual identifications and track back to their potential check-in times. From a safety standpoint, mandating everyone to use a rotating door or submit to an identification scan could provide a clearer understanding of actual hotel entrants.

DB: Our organization has multiple internal divisions, such as regulatory compliance and internal reviews, tasked with detecting warning signs of deceptive practices. However, numerous instances have revealed insufficient investment in educating staff responsible for this work. Specifically, they lack instruction in loss avoidance, a weakness I observe in our procedures. Action is required to implement training on fundamental indicators, as their proficiency directly enhances the information they deliver.

Currently, deception is widespread, and the frequency of encountering fraudulent tactics is alarming. The US experiences a higher volume compared to other areas due to the use of new chip-and-pin cards, a technology long-established in Europe. Consequently, some larger entities are establishing dedicated task forces to investigate fraud. My familiarity with these teams, typically comprising nine to ten individuals, highlights their heavy workload, with each member managing 10 to 20 cases concurrently.

HH:”

The criticality of involving your revenue management, regulatory adherence, and even cash handling personnel in instances of potential credit card misuse cannot be overstated. While not always standard practice, it’s an absolute necessity. Consider this: a patron contacts you stating, ‘Someone utilized my card for a purchase I didn’t make.’ Perhaps it’s a relatively small sum. The auditing team might address it, but what about your surveillance and security departments? They remain uninformed. The account in question? No alerts triggered. An opportunity to apprehend the perpetrator? Lost.

Here’s where things become particularly compelling, especially with larger-scale incidents.

Every gaming establishment conducts some form of internal review for these discrepancies across various operational units. However, let’s be frank, it often resembles searching for a needle in a haystack. My own General Manager confessed last fall to being inundated with over 15,000 revenue audit anomaly reports. How can one realistically pinpoint genuine issues amidst such a deluge of data?

Conversely, we’ve encountered fraudulent activities where these exception reports proved to be the crucial element in determining the extent of recovery sought from the alleged offender. Imagine a casino supervisor feigning a slot machine malfunction and subsequently employing ‘customer compensation’ to pilfer small amounts repeatedly. These seemingly insignificant acts can accumulate significantly over time.

She received error notices practically daily, all originating from the same individual. When an employee has submitted fifteen thousand error notices, can you fault them?

Our aim, which has significantly improved due to numerous successful inquiries, is to analyze these recurring errors. Your revenue, audit, and compliance teams should be consulted to identify employees with the highest number of errors and to pinpoint specific error patterns. Upon investigation, you’ll uncover astonishing revelations – clear indicators of misappropriation that have never been escalated to surveillance or security personnel.

If you’re not already receiving error notice analysis, insist on it. Should you discover an employee engaged in illicit activities, have your compliance team retrieve all their error notices, as this will bolster your case. In certain instances, these notices can even be used to determine a precise monetary value, potentially elevating the offense from a misdemeanor to a felony. The data exists; you simply need to ensure it reaches you.

DB:
While they might conceal their actions, the consequences are undeniable – the funds are missing. If something untoward is occurring, there’s a trace – and this method can help you uncover it. You’re now transforming this data into actionable intelligence. By becoming highly specific, you can deliver a decisive blow.

This piece was initially released in November 2015.