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Feb. 23, 2008
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CASINOS: MGM will raise pay for dealers

Casino giant's move meant to make compensation uniform

By HOWARD STUTZ
REVIEW-JOURNAL

Dealers at MGM Mirage's 10 Strip casinos will be given a pay raise Monday, as much as 22 percent in some cases, as the gaming operator moves to implement a uniform pay structure for more than 5,100 of its workers.

MGM Mirage President Jim Murren said Friday afternoon the raises, as high as $1.42 an hour for 60 percent of the company's Strip dealers, were needed to create a level playing field among its dealing work force. MGM Mirage is preparing to add potentially 1,000 dealers when the company opens CityCenter development in November 2009. MGM Mirage is also looking at expansion plans on the Strip well into the next decade.

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    • "Our thinking is that our company has grown rapidly, both internally and through two major mergers," Murren said. "Our dealer rates were all over the board and, if we are to be a leader, then we need to standardize ways to compensate our dealers."

    Murren added that the raises did not come about as a response to potential union organizing efforts targeting dealers at the company's Strip casinos.

    "People will wonder and believe that, but we came up with the idea of CityCenter in 2004 and our employment practices long before any noise (about union organizing) was being made in the marketplace," Murren said.

    The New York-based Transport Workers Union of America has organized dealers at Wynn Las Vegas and Caesars Palace under Las Vegas Dealers Local 721. The union has taken other steps to organize at two MGM Mirage properties, The Mirage and Mandalay Bay, setting up two Web sites aimed at dealers at those casinos.

    "One thing we have is a tremendous dialogue with our employees," Murren said. "This will be expensive for us to do, but it puts us in a great position for 2009."

    Murren said the financial figure for the increased labor costs was more than $10 million annually based on the current job totals.

    Letters from the various MGM Mirage property presidents went out to dealers late Friday afternoon explaining the pay increases and the reasoning behind the move. The base hourly wage for full- and part-time dealers will increase Monday to $7.75 an hour for dealers making less than that hourly wage. Dealers making more than $7.75 an hour will be given a yet-to-be-determined cost-of-living increase.

    Full- and part-time dealers at MGM Mirage will receive cost-of-living increases every April starting in 2009.

    "These upgrades were made after an exhaustive review of the best pay practices and policies at all properties and in keeping with our goal to provide the MGM Mirage work force with the most contemporary and competitive pay and benefits possible," the letter stated.

    The pay discrepancy between dealers at various properties happened because of the company's expensive buyouts of rival casino operators. In 2000, then MGM Grand paid $6.4 billion to acquire Mirage Resorts. Five years later, the renamed MGM Mirage spent $7.9 billion to acquire Mandalay Resort Group. Dealers at the different properties made different base hourly wages.

    Murren said having a uniform pay structure will make it easier for current MGM Mirage dealers to transfer between properties once hiring begins at CityCenter, a development projected to cost $8.1 billion to $8.4 billion. He also said the increased pay scale might keep some company dealers from fleeing for new positions being created at the $2.9 billion Fontainebleau and the $2.2 billion Encore, which are expected to compete with CityCenter for employees.

    "Obviously, there is a wide array of competition coming into the market," Murren said. "We wanted to create the right avenues to keep our best workers."

    Murren said no other changes in the company's dealing structure would be made, including a move similar to what Wynn Las Vegas executives did in September 2006, when the hotel-casino implemented a new tip pooling program that significantly reduced dealers' take-home pay.

    Some casino managers and casino supervisors were added to the list of those who qualify to share in Wynn's oftentimes lucrative tip pool. Management said it started the policy to correct a pay disparity that had dealers earning more than their supervisors.

    "(MGM Mirage Chairman) Terry Lanni has been very clear that we would not establish that program," Murren said. "No one has been more firm on this than Terry."

    The program led to employee unrest at Wynn Las Vegas and, eight months later, casino dealers voted by a 3-to-1 margin in favor of representation by the Transport Workers. On the eve of the vote, Wynn Resorts Chairman Steve Wynn apologized to the dealers, saying it had been a mistake to implement the controversial program.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or (702) 477-3871.

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    quyen wrote on October 13, 2008 02:17 PM: im dealar i have 8 years i know i know
    5 games im very good with it im looking for better job i work any chift if you HAVE ANY AVILABILE PLS CONTACT ME


    Not a Wynn Dealer wrote on March 15, 2008 11:47 AM: Yah Wynn Dealer......Steve came online and read your comment. He was so enraged that he spent the time and had it deleted.

    Wynn Dealer....you need a vacation, you've been working too much.


    Bored with Dealers wrote on March 10, 2008 08:06 PM: Let's be real folks... dealers stand there and turn cards over. There's little work to be done with the automatic shufflers that exist today. Dealers don't have to make any decisions. Dealers aren't even required to talk to the guests (the good ones do, but they don't make any more money). Are the casinos just paying for their pretty faces (because not all of them are that pretty).

    Cooks at McDonalds have more skills than the majority of the dealers. Most dealers just wait for their breaks, and then bitch about how tough their life is how little they get paid for doing ABSOLUTELY NOTHING...

    If I were in charge, I'd get rid of all the dealers and put in the electronic machines and have some really nice cocktail hosts and personable have conversations with the patrons... no wonder table win is going down in this State... too much complaining, too little work...

    And for those of you who want to say I should do the job before complaining... stuff it... did the job and moved on with my life to do something that takes skill and use of my brain...


    Paula J. wrote on February 25, 2008 11:50 AM: ABOUT TIME!!!


    Wynn Dealear wrote on February 24, 2008 08:10 PM: I posted a comment the first day this column came out...how come it was erased? Did Steve or Terry Lanni phoned in and had it removed? My remark was that Steve Wynn's apology was an insult to our intelligence and that if Terry Lanni means what he says about not ever taking tokes from dealers, then he should be at the Labor Board Office on March 19th at 9:30 a.m.


    David wrote on February 24, 2008 02:47 PM: Let us hope that Harrahs, Station Casinos and Boyd Properties follow suit in increasing a stagnant wage structure that has only added to the bottom line of casinos at the expense of the stressed out dealer, dealing to the likes of Douglas and his ignorant bantor.


    KittKatt wrote on February 24, 2008 09:40 AM: I don't know who you've been comapring notes with, but most strip dealers DO NOT make 75K. There are a few properties close to that, but the majority of dealers are making between 35K - 55K, depending on shift, location, and days off. Take from that the outrageous insurance rates (for poor coverage) and uniform supplies (that we ARE NOT supposed to pay for) and it isn't near the amount of money it seems to be!
    Bumping from dealer to floor is not a requirement, most people are fully aware just what going floor entails. If you are that upset about what floor makes, then perhaps floor people should organize and be more vocal like their dealer brothers. Don't expect to ride the coat tails of dealers, when you won't stand beside them in the fight.


    BiloxiBlues wrote on February 24, 2008 08:11 AM: Sorry to scare you but IF YOU INCLUDE TIPS..the full time dealers make 75K. I've seen their W2's amd I hear them complain when the daily toke rate goes below $35/hr.
    As far as Vegas goes...yes there are plenty of places that make more than 75K because the dealers out here are only in the top 10. You are either not in the business or you work at one of the local grind joints.


    Kristikuca wrote on February 24, 2008 02:19 AM: Dealers in Las Vegas don't make 75k a year anymore. If we made that much money the town would be overrun with those hoping to get on that gravy train. And with only 1 week required in school? Let's see, 75k a year, for only 1 week of training...anything here sound too good to be true? Give me a break. I make $7.10 an hour plus tips. A lot of people here make tips.


    Hard to believe a casino dealer makes $75K/year wrote on February 24, 2008 01:37 AM: I dont know where you are coming up with full time dealers making 75K per year (unless youre referring to DRUG dealers) but perhaps you should read up what this article states on what MGM Mirage Resorts pay their dealer staff : "The base hourly wage for full- and part-time dealers will increase Monday to $7.75 an hour for dealers making less than that hourly wage. Dealers making more than $7.75 an hour will be given a yet-to-be-determined cost-of-living increase".....If you were able to work non stop for 24 hours a day-365 days a year at $7.75/hour , you wouldnt come close to making $75000/year , you only would gross $67890 before taxes....If a full time casino dealer were making $75K per year working 40 hours a week , that would be earning over $36 per hour as there are many highly skilled trades that do not pay that much...Anyone lucky enough to make $50K a year in the gaming industry wouldnt be crying about it , trust me.


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