The Nevada Supreme Court issued a decision last week that tip sharing between employees such as table games dealers and those who supervise them is OK under the law, according to reporting from the Las Vegas Review-Journal.
The debate stems from Steve Wynn implementing such a tip-sharing policy on his property.
In 2011, a lower court had ruled that doing so was against the law, but the Nevada Supreme Court, after a lengthy consideration of the issue, saw otherwise.
Nevada law reportedly says it’s not OK for an employer — in this case Wynn Resorts — to take an employee’s tips to increase its bottom line, but it does not prohibit a tip-pooling policy among the casino employees, the court said.
According to the Review-Journal, “tip sharing is common among workers in the same job classification, waitresses or dealers for instance. Wynn Resorts’ policy of having supervisors share in tips is uncommon but not unprecedented.”
When Wynn implemented the policy in 2006 it was a first for casinos on the Las Vegas Strip. Steve Wynn, a billionaire, owns Wynn and Encore, two prominent casinos on the Strip. He also has casino interests in Macau, the world’s top gambling hub.
Dealers obviously complained because they said it reduced their incomes. Lawyers maintained that while Wynn Resorts wasn’t explicitly profiting from the move, it would allow the company to lower raises given to supervisors.
According to VegasInc, the dollar amount taken from dealers is around $5 million per year.
Nevada’s casino revenue has been on the upswing after taking a dive due to the Great Recession. In 2012, Silver State properties raked in $10.8 billion from gamblers.
