Casinos: The Effects of Casinos - Employment

At Commercial Casinos

According to the AGA in 2004 State of the States, commercial (nonracetrack) casinos employed more than 350,000 people in 2003. Although this number is up slightly from 2002, it is down from the nearly 365,000 people employed in 2001. Nevada accounted for 192,812 of commercial casino jobs in 2003, or 55% of the total. Racetrack casinos in Delaware, Iowa, Louisiana, New Mexico, Rhode Island, and West Virginia employed nearly 13,000 people during 2003. This number is up substantially from 8,000 employed during 2001.

At Native American Casinos

The NIGA reports that tribal gambling directly employed 205,000 people during 2003. (See Figure 6.2.)

FIGURE 6.2

Approximately 155,000 of these jobs were at tribal casinos. The remainder were in directly associated businesses and tribal government enterprises. Another 75,000 jobs were attributed to the indirect effects of tribal casinos, for example, businesses at which casino workers spent their wages. The NIGA estimates that tribal casinos were indirectly responsible for another 170,000 jobs by purchasing goods and services from various businesses around the country. Capital construction projects (for example, casino building) were associated with creation of another 45,000 jobs. In total the NIGA credits tribal gaming with employing 495,000 people during 2003.

In 1999 the NGISC reported that the great majority of employees in tribal casinos were not Native Americans. In 2001 the NIGA concurred, estimating that tribal casino employees were roughly 25% Native Americans and 75% non-Native Americans. This discrepancy is due at least in part to the fact that some tribes have fewer members than employees.

The applicability of federal labor laws to tribal casinos is a controversial subject. Tribes are expressly excluded from Title VII of the Civil Rights Act of 1964 and Title I of the Americans with Disabilities Act of 1990. Some court cases have held that Occupational Safety and Health Administration (OSHA) requirements, the Fair Labor Standards Act, and the Employee Retirement Income Security Act do apply to tribal businesses conducted on the reservation. The National Labor Relations Act exempts government entities from the requirement that employees be permitted to form unions and bargain collectively with their employers. The National Labor Relations Board and a federal court have both ruled that a tribe is a government and therefore exempt from the act. Because tribal governments are sovereign, they are not subject to state labor laws. Instead, tribal labor laws apply.

A May 2002 article in the Wall Street Journal accused tribal casinos in California of using their sovereignty to avoid federal labor laws, unions, and costly worker benefits and lawsuits. Under the Indian Gaming Regulatory Act, tribes are required to follow federal minimum wage and safety provisions. They also are prohibited from hiring felons to handle money. State compacts determine whether tribes must follow state employment laws. However, day-to-day enforcement is left up to tribal gaming agencies. Lawyers complain that tribes fire sick and injured workers to avoid paying workers' compensation and also dismiss those who advocate unionization.

The Hotel Employees and Restaurant Employees Union (HEREU) accuses tribes of abusing and firing casino employees at will. HEREU alleges that casino managers warn workers not to discuss unionization during their breaks. Tribal-state compacts negotiated in California, Wisconsin, Connecticut, and New York recognize the right of tribal casino employees to be represented by a union as their collective bargaining agent. HEREU plans to focus its organizing campaign on the 60,000 workers employed in California's tribal casinos. It complains that wages and working conditions at these casinos are "generally substandard." It also claims that HEREU has been blocked from organizing casino workers at the Foxwoods and Mohegan Sun casinos in Connecticut.

The Gaming Industry: A New Career Choice

The booming casino market has introduced a new career choice for many young people. The University of Nevada at Las Vegas (UNLV), only 1.5 miles from the Strip, has included gaming courses as part of its curriculum since it opened in 1967. Courses offered include Casino Operations and Management, Protection of Casino Table Games, and Mathematics of Casino Games. The UNLV International Gaming Institute is part of the William F. Harrah College of Hotel Administration. It includes a casino and a surveillance room.

Michigan State University's business school offers courses in casino operations and management that reportedly have waiting lists. Students are drawn to the unique nature of casino careers and the perceived excitement and fantasy aspect. Students at Central Michigan University, which is located near the Soaring Eagle Casino and Resort operated by the Saginaw Chippewa Indian Tribe of Michigan, can take upper-level courses at UNLV.

The Casino Career Institute, which includes a large mock casino, is a division of Atlantic Cape Community college in downtown Atlantic City, New Jersey. When it

TABLE 6.1

opened in 1978 it was the first gaming school in the country affiliated with a community college.

In the summer of 2001 the Bureau of Labor Statistics, an agency within the U.S. Department of Labor, featured casino gaming in Occupational Outlook Quarterly. The article describes the duties, qualifications, necessary training, and earnings of casino workers. (See Table 6.1.) In general, gaming workers need excellent communication and customer service skills, personal integrity, and the ability to maintain composure when dealing with angry patrons. A high school diploma or GED is usually required for all entry-level jobs.

All employees must be at least twenty-one years old and have a license from the appropriate regulatory agency. Obtaining a license requires a background investigation. Requirements for education, training, and experience are up to individual casinos. Most casino work is physically demanding, requiring standing for long periods. Exposure to cigarette, cigar, and pipe smoke and to loud noises is common. The employment outlook for the industry is good, as increasing competition should result in more jobs for gaming workers. Prospects are best for those with a degree or certified training, previous experience, and superior interpersonal skills.

Many gaming employees must be licensed by the state in which they work, especially dealers, cashiers, and others dealing with money, slot repairmen, security personnel, and supervisors and managers. A background check is usually required to obtain a license. People can be disqualified from casino employment for a variety of reasons, including links to organized crime, the commission of felonies, and gambling-related offenses.