Quote:
Originally Posted by El Diablo
River, bolt:
That's all fine, and doesn't really impact the discussion at all re: how much rake would need to increase to eliminate tipping without impacting dealer pay.
I thought I had read some posts by you and others discussing dealers having different hourly rates for table time vs no table time, and that things like PTO costs wouldn't result in a net increase to the casino, but I think it would. For example (just to use round numbers) let's say a dealer now averages making $200 during an 8 hour shift, or $25/hr. $40 of that comes from their hourly pay, (8*$5) and 160 comes from tips. So if you adjust the rake so that the $160 from tips is replaced by rake, the dealer now gets all $200 from his hourly and 0 from tips, (casino pays them $25/hr) then the casino would break even on that since they pay payroll taxes on both tip and hourly income of the dealer already, and the dealers income hasn't changed
But if that dealer has vacation, sick, or other paid time off, for which he currently gets paid $5/hr, the casino would now have to pay them $25 per hour for that. So it seems to me (but I am not an accountant) that the extra expense would be on top of the increase in rake that just exactly replaces current tipping. Then add the payroll tax on that increase, and it seems like the rake increase would have to be more than just enough to cover what the players are tipping, or else there is a net loss to the casino.
But as I said, I'm not sure about all this stuff, so I could be mistaken.