Last Updated: June 17, 2020, 5:09 am

Casino Marketing Can Foster Casino Fraud

The nature of financial transactions in a casino operation is huge and usually involves million dollars of funds on its operation and financial transactions. Due to the business nature of the casino industry it would be typical to allot large amount of funds intended for the promotion and marketing operations of the casino business.

It is believed that fraud is most likely to occur on the marketing and promotional operations of a casino. Due to the fast laden flow of financial transactions occurring in this specific area of casino operation, it can foster the occurrence of fraud which often goes undetected by the casino operators.

Casinos usually allot funds intended for the marketing and promotion of their establishment to upkeep with the stiff competition in the casino industry. In order to upgrade their income and attract potential customers, casinos have to devise marketing strategies that will rev up their marketing business. A common and effective means of doing this is to offer complimentary, freebies and bonuses to their customers in order to entice them from becoming regular casino players in their establishment. This strategy is very effective yet very lucrative to the casino operators. Millions of funds are required to be able to initiate the promotion but it does provide a promising return of investments which may double or triple the invested promotional funds that are returned to the casino's income.

Because of the stream of financial transactions on the casino's promotional and marketing programs, it can attract theft and fraud to occur. An example would be the irregularities that can occur through the offering of casino complimentary bonuses. A player's rating determines the complimentary bonus a player can avail from a casino. A manager can easily tamper the casino's records and may overstate a player's rating to allow friends to avail of more casino bonuses. This fosters complimentary abuse to occur.

Employees who have access to the casino's record of their player's account can easily transfer points from dormant accounts to active account of players they may be doing a favor. This will entitle them for more complimentary which will burden the casino's finances. These sorts of transactions can be carried without leaving a trail when committed by casino employees who have direct access to the player's accounts.

Due to some lapses on the casino's financial management structures, crimes can be committed without a trace. But casino operators are now establishing a stronger deterrent for such activities to take place in their casino establishment through the employment of internal audit that will monitor and scrutinize the casino's financial records and transactions. A thorough audit to the casino's internal financial operations will eventually unmask any discrepancies that occurred which the casino operators might have overlooked before. This is an effective means of combating the rotten system occurring in this area of casino operations.

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