Bingo and Keno Protection Presented By: Darrin L. Norcutt Surveillance Training Manager A.C.E.P. LLC.

Introduction The Games of Bingo and Keno Possible Scams. Any relevant background?

History of Bingo Lo Gioco del Lotto d’Italia – 1530 The French Lotto – 1700’s Germany – 1800’s Beano! – 1920’s

Bingo Today Today Bingo is a multi-million dollar industry. –Casinos –Churches –Schools –Fund Raising

Bingo ~ General Bingo is a 24-hour operation consisting of three shifts and four sessions per shift. (Except for Native American Casinos who normally only have a few sessions a day.) The Bingo Cage and the Bingo Podium areas are restricted to bingo personnel only. A winner is the first person to complete coverage of the designated game (single line, coverall, etc.). Should there be multiple winners on a game; the prize money will be divided among them based on the price of the bingo cards.

Bingo ~ General Games often have multiple Bingos. –for example, the players may first play for a single line, then after that is called continue playing for a full card, then for a consolation full card.

Bingo ~ General Players often play multiple cards for each game To mark cards faster the players usually use special markers called daubers. After calling the number the caller then displays the next number on a television monitor; bingo cannot be called until that number is called aloud, however.

Bingo ~ General Commercial bingo exists only in Nevada casinos and Native American bingo halls. Many will have bingo sessions, and some will link bingo games together to form progressive jackpots that pay big money to winners.

The Business of Bingo Commercial Bingo –Nevada Casinos Cater to locals They will usually offer several sessions daily, with relatively modest stakes except for coverall jackpots. –Native American Casinos Native American games are typically offered for only one or two sessions a day, and are often played for higher stakes than charity games in order to draw players from distant places. Some also offer a special progressive jackpot game that may tie together players from multiple bingo halls.

The Business of Bingo Churches and Charity Organizations

Surveillance Standards for Bingo and Keno STANDARD 4 REQUIRED SURVEILLANCE COVERAGE: KENO AND BINGO 1. The surveillance system of category “A,” “B,” and “C” licensees must possess the capability to monitor the keno and bingo ball drawing device or random number generator, which must be recorded during the course of the draw by a dedicated camera or automatically activated camera, with sufficient clarity to identify the balls drawn or numbers selected. 2. The surveillance system of category “A,” “B,” and “C” licensees must possess the capability to monitor and record general activities in each keno game area, with sufficient clarity to identify the employees performing the different functions. 3. The surveillance system in the bingo area of all licensees must possess the capability to monitor and record the game board and the activities of the employees responsible for drawing, calling and entering the balls drawn or numbers selected.

Equipment Controls Bingo balls should be changed out once a day. Supervision should notify Surveillance. Balls should be inspected at the time they are changed out. When a ball needs to be replaced a notification to Surveillance should be made. Bingo equipment (blower machine and display boards) should be checked for accuracy and maintained on a periodic basis.

Equipment Controls Bingo cards are controlled by three numbers –Serial number: defines an entire set (price level) which usually consists of five packs of 100 sheets each or rainbows (multi-colored bingo packet) consisting of 15 packs of 50 sheets each and is printed on the top of the sheet.

Equipment Controls –Inventory Control Number: defines the individual sheet number printed on the side of the sheet and is used to calculate sales by means of a physical inventory method. –Card Numbers: identifies the individual card and is used to determine a winner when entered into the computer. Bingo cards are consecutively numbered.

Equipment Controls Bingo paper, once received, should be stored in a secured area. As needed, cards should be delivered to the bingo cage and stored in cabinets.

Equipment Controls Control Access –Each user has his/her own individual password. –Passwords should be changed quarterly with changes documented by the computer system. –Backup and recovery procedures needed.

Equipment Controls Cashier is accountable for their own drawer. Drawer should be secured when not in use.

Bingo Scams

Selling Stations –The seller may shortchange the customer by charging more than the customer received. –The customer is the control for this scam.

Bingo Scams Excessive variances –Bingo transactions happen very quickly that this is usually more of a mistake than fraud.

Bingo Scams Voids –Paper is voided even though the packs are on the floor. When voided, the entire pack should be available not just the first page.

Bingo Scams Winner Scams –Occurs during the payoffs of winners. With the exception of the fraudulent act on the mic by the caller, these are all collusive activities.

Bingo Scams FAKE WINNER –This where a card is paid as a winner, although it was never verified. Other customers will be aware of this and will be concerned as that will decrease the share of the split.

Bingo Scams Paying winner for higher packet. –The incentive is for the player to give a bigger toke. –This scam will need the collusion of the Agent, Cashier, Caller and weak auditor in accounting. –The printer at the call stand documents the winning card number and level. –EXCEPTION: The paper rainbows will not specify the level, consequently these are more vulnerable to fraud than normal.

Bingo Scams Procedures Against: –An audit of the winning numbers on the calling stand printer versus the cashier paperwork would isolate these fraudulent acts.

Bingo Scams Stealing Packs –Packs normally range from $4-$18 and are designated by color. –500 sheets in a pack –Will usually steal from lower denomination.

Bingo Scams Ball Manipulation –The agent can manipulate the balls on the calling stand, causing someone to win where they should not have. Not easily done with the blower style system.

Bingo Scams Toke Theft –Same scam as we see in slots where an agent receives a toke but does not drop it in the toke box. –Theft from co-workers.

KENO ~ General Keno is a lottery-like or bingo-like gambling game played at modern casinos though not licensed in many states. House Edge: %

Keno ~ History Keno originated in ancient China in the Han Dynasty between 205 and 187 B.C. Chinese immigrants brought the game to America in the 19th century.

Surveillance Requirements Must have the capability to monitor the keno balls and the ball drawing device. –Should be recorded during the course of the draw.* PTZ’s –To covertly observe the activities within the keno area. Fixed Cameras –Over every money drawer where customers or Keno runners place the wagers as well as collect the winnings.

Watch Out For: Ensure that the previous game’s balls have been dropped. Control: Accounting should pull tape (or digital equivalent) to do a 20 game random check. Damaged or cracked balls should be immediately replaced. –Damaged balls will not be sucked up. –Cracked balls will come up more often than regular balls because the air is sucked in and the ball will rise into the blower. –Keno agents and regular players know this and will pick numbers accordingly. –Possibility of collusion.

“Controls can only give reasonable assurance not absolute assurance”

Thank You For Your Attention Questions or comments?