In the dynamic world of gaming operations, facility type plays a pivotal role in shaping strategies for efficiency, internal controls and security, and modernization. The journey to a clearer, more efficient operational roadmap demonstrates that one-size-fits-all solutions can often miss the mark.
Understanding operational diversity
Tribal gaming operations can typically be categorized into boutique casinos, resort casinos, and slot houses, each with its own set of challenges and opportunities. Boutique casinos cater to a local clientele and focus on a few amenities, with less overhead, while resort casinos offer a host of facilities, such as hotels, entertainment venues, and fine dining options that attract a broader market. Slot houses are simpler, often offering only machine gaming and basic food services.
The importance of tailored solutions
When confronted with vulnerabilities in cash handling, internal controls, and both physical and digital security, gaming operators must assess their facility-specific needs. Boutique establishments often operate with a smaller team, leading to blurred lines in responsibilities. This can increase the risk of internal fraud. Staff may feel more comfortable with one another, and trust can prevail over strict adherence to procedures. Conversely, larger resort operations benefit from departmentalization, spreading responsibility and minimizing misconduct. However, this can lead to other vulnerabilities when operations either do not document processes and policies, when staff do not follow them, or when employees do not know or recognize each other.
Each facility requires tailored approaches that balance operational efficiency and modernization with risk management. A boutique operation might thrive in a strictly local environment, and with less technology, but a larger tribal gaming operation will realize increased efficiencies by integrating technology and internal security controls on a grander scale and across departments.
Technology challenges and solutions
Challenges
Implementing technology, i.e., modernizing an operation, is a considerable challenge that requires weighing various solutions against a gaming operation’s unique operational context. Not all technology is universally applicable.
Understanding what technology solutions resonate with the individual needs of the facility is critical. The question isn’t merely what technology is out there but what best serves the operational goals without compromising internal control and security measures. For instance, cash handling automation can significantly reduce manual errors and time spent on transactions. However, its effectiveness is contingent upon a facility’s size and complexity.
Solutions
The return on investment for technological implementation often exceeds expectations. For example, a single currency dispenser costing approximately $27,000 can eliminate one full-time position annually, essentially paying for itself within the first year of operation. In one case study, a tribal casino that implemented four cash automation machines projected an 18-month ROI timeline but achieved full return in just nine months. These improvements typically occur through natural attrition rather than staff reductions, allowing facilities to operate more efficiently while respecting their commitment to tribal employment. Another facility reduced its daily count room time from 16 hours to just 6 hours after investing in modern currency counting equipment, significantly improving both efficiency and employee satisfaction.
Successful tribal casinos have implemented several proven technologies that deliver immediate benefits. Cash dispensers that scan tickets and dispense exact amounts reduce manual handling errors while minimizing the cash accessible to individual cashiers. Currency recyclers that both receive and dispense cash streamline operations by automatically sorting and recycling currency, reducing the need for frequent cash deliveries and pickups. Advanced currency counting equipment can process large volumes in a fraction of the time required for manual counting. The key is planning the entire process from implementation through to accounting integration, ensuring that each technology solution connects seamlessly with existing systems and procedures.
Balancing efficiency with control
Striking a balance between operational efficiency and the desire for internal controls can prevent bad actors from exploiting vulnerabilities. Greater moves in automation risk dependence on technology could blind staff to critical oversight processes. Proper staff training and engagement are essential to ensuring that employees understand the capabilities, benefits, and limitations of any new technology deployed, and how they, as staff, benefit from these enhancements, ensuring vigilance.
Measuring success
Defining efficiency using short-term metrics like fewer staff and less time to perform cash-handling functions is easy. But establishing long-term performance indicators is also important, like overall incident reduction, increased employee satisfaction and retention, overall revenue growth, and return on investment from implemented technologies.
The human element remains critical in any modernization effort. Successful implementation requires intentional change management that goes beyond technical training to address the psychological aspects of adaptation. Explaining the “why” behind new procedures helps staff understand their purpose rather than seeing them as arbitrary impositions. Showing cashiers how automation can give them more time on the floor where they can earn tips, for instance, frames technology as beneficial rather than threatening. Gaming operations that excel in modernization typically involve experienced implementation partners who understand the unique dynamics of tribal gaming environments and can relate authentically to staff concerns, building the relationships necessary for sustained adoption and compliance.
Key takeaways for tribal gaming operations:
- Assess facility-specific needs by examining the surrounding market, operational size, and customer demographics.
- Understand what technology best serves your operational goals without compromising internal controls and security.
- Train employees so they understand the capabilities, benefits, and limitations of any new technology or process.
- Measure success using both short and long-term indicators, and staff adoption of new processes and technology.
Clarity through collaboration
Navigating the complexities of individual gaming operations to increase efficiency requires a multi-disciplinary approach, calling in expertise from various fields like finance, technology, and human resources. Partners like REDW, whose deep experience in tribal gaming operations can help develop and implement tailored internal control and security protocols that respect tribal sovereignty while protecting assets and operations, exemplify how a collaborative style can yield tailored solutions, enhancing operational efficiency, internal controls, and security, and modernization across diverse gaming environments. With over 40 years of trusted service to tribal nations, REDW’s National Tribal Practice provides practical operational knowledge to help gaming facilities build resilient, efficient, and secure systems and processes for the future. For details, visit redw.com/tribalgaming.
