There are no prerequisites.

Course Description

The gaming industry is a unique environment for the accountant. There is far more cash than is normally found in most organizations, plus a number of different transactions to account for - jackpots, loyalty programs, gaming chips, comps, and more. The result can be bewildering. Accounting for Casinos and Gaming is designed to bring clarity to the situation by providing an overview of gaming operations, and describing those accounting issues most relevant to a gaming entity.

Topics covered include the accounting for loyalty and incentive programs, jackpots, chips and tokens, licensing fees, payroll, marker collections, fixed assets, interest capitalization, gaming controls, and federal reporting requirements.


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Sep 6, 2018
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Recognize the factors that can impact the level of gaming taxes.
  • Identify the different types of games.
  • Note the responsibilities of a casino controller.
  • Recognize the responsibilities of the cage staff, and the types of transactions that they handle.
  • State the types of transactions used to supply chips to and remove cash from a gaming table.
  • Recognize the calculation for gross gaming revenue.
  • Identify the contents of a table drop box.
  • Note how a TITO system functions.

Chapter 2

  • Recognize the different accounting principles.
  • Recall which accounting system incorporates the concept of being out of balance.
  • Note the source of the information for the trial balance.

Chapter 3

  • Recall the definition of revenue in the gaming industry.
  • Identify the operations within a casino that can produce a deferred revenue liability.
  • Note the proper accounting for the different types of comps, promotional allowances, and deals offered to customers.

Chapter 4

  • Identify the situations in which a Form W-4 is used.
  • Recognize the methods used to calculate employee compensation.
  • Recall the timing of payroll tax deposits under the different deposit schedules.
  • Note how the FUTA tax is calculated.

Chapter 5

  • State the reasons why a casino might accept a write-down on a marker.
  • Note why the direct write-off method is not the best way to account for bad debts.

Chapter 6

  • Recall the costs that can be capitalized into a fixed asset.
  • Note the intent behind using the mid-month convention.
  • Identify the calculations used for accelerated depreciation methods.
  • Recall the proper accounting for idle assets.

Chapter 7

  • Identify the situations in which interest capitalization should be used.

Chapter 8

  • Note the correct accounting treatment of loan commitment fees.
  • Recall which information is listed in a loan amortization table.

Chapter 9

  • Note the different types of theft that can arise in a casino.
  • Identify the controls that can apply to comps, markers, bingo, and dealers.
  • Recognize the logging mechanisms used to identify currency transaction reporting issues.

Chapter 10

  • Recognize the line items used in each of the financial statements.

Chapter 11

  • State the requirements for being subject to the Bank Secrecy Act, and the reporting requirements associated with it.

Table of Contents

Chapter 1 – Gaming Operations

Learning Objectives


Types of Games

Casino Organizational Structure

Organization Charts

Job Titles

Physical Organization - Casino

Physical Organization – Card Room

Table Game Operations

Table Inventory

Fill Transactions

Credit Slip Transactions

Ending Reconciliation

Foreign Chips

Player Rating System

Table Drop Boxes

Slot Machine Operations


Slot Clubs

Slot Drop

Hard Drop

Currency Acceptor Drop

Slot Gaming Revenue Calculation

Keno Operations

Race and Sports Book Operations

Bingo Operations

Casino Credit


Rim Play

Marketing Activities

Cashier Reconciliations


Chapter 1 – Review Questions

Chapter 2 – The System of Accounting

Learning Objectives


Financial Accounting Basics

Accounting Frameworks

Accounting Principles

The Accounting Cycle

Accounting Transactions

Types of Transaction Cycles

Source Documents

Double Entry Accounting

The Accounting Equation

Journal Entries

The Accruals Concept

The Chart of Accounts

Major Journal Entries

The Ledger Concept

Posting to the General Ledger

General Ledger Overview

The Trial Balance

The Trial Balance Format

The Extended Trial Balance

Accrual Basis of Accounting


Chapter 2 – Review Questions

Chapter 3 – Gaming-Specific Accounting

Learning Objectives


Revenue Recognition

Deferred Revenue


Track Fees

Discounts on Losses

Accounting for Jackpots

Jackpot Insurance

Accounting for Unpaid Winners

Loyalty and Incentive Programs

Discretionary Incentives

Nondiscretionary Incentives – Cash Redemption Allowed

Nondiscretionary Incentives – Free Play Only

Nondiscretionary Incentives – Multiple Redemption Options

Reporting Considerations

Promotional Allowances


Gaming Chips and Tokens

Licensing and Preopening Costs

Gaming License Costs

Preopening Costs

Tax Impact of Customer Credit

Deferred Income Taxes

Cocktail Service

Transfer Pricing

Coin Booth

Drop Accounting


Chapter 3 – Review Questions

Chapter 4 – Payroll Accounting

Learning Objectives


Employee Time Tracking

Gross Pay Calculations

Hourly Rate Plan



Types of Payroll Taxes

Social Security Tax

Medicare Tax

Unemployment Taxes

Income Tax Withholdings

Benefits and Other Deductions

Net Pay

Remitting Payroll Taxes

Types of Tax Deposit Schedules

Monthly Deposit Schedule

Semiweekly Deposit Schedule

Federal Unemployment Deposit Schedule

Remittance Method

The Form 941 Quarterly Federal Tax Return

State Tax Remittances

Payments to Employees

The Payroll Register

Form W-2

Payroll Journal Entries

Types of Payroll Journal Entries

Primary Payroll Journal Entry

Accrued Wages

Manual Paycheck Entry

Employee Advances

Accrued Vacation Pay

Tax Deposits


Chapter 4 – Review Questions

Chapter 5 – Receivables and Payables Accounting

Learning Objectives


Accounting for Accounts Receivable


Accounting for Bad Debts

Direct Write-Off Method

Allowance for Doubtful Accounts

Accounting for Accounts Payable

The 1099 Vendor


Chapter 5 – Review Questions

Chapter 6 – Fixed Asset Accounting

Learning Objectives


What are Fixed Assets?

Fixed Asset Classifications

Accounting for Fixed Assets

The Capitalization Limit

The Base Unit

The Initial Measurement of a Fixed Asset

The Purpose of Depreciation

Depreciation Concepts

Accelerated Depreciation

Sum-of-the-Years’ Digits Method

Double-Declining Balance Method

Straight-Line Method

Units of Activity Method

The Depreciation of Land

The Depreciation of Land Improvements

Depreciation Accounting Entries

Accumulated Depreciation

Asset Impairment

Measurement of Asset Impairment

The Asset to be Tested

Timing of the Impairment Test

Accounting for the Impairment of an Asset Group

Asset Derecognition

Abandoned and Idle Assets

Asset Disposal Accounting

Slot Participation Agreements


Chapter 6 – Review Questions

Chapter 7 – Interest Capitalization

Learning Objectives


Overview of Capitalized Interest

When to Capitalize Interest

The Interest Capitalization Period

The Capitalization Rate

Calculating Interest Capitalization


Chapter 7 – Review Questions

Chapter 8 – Debt Accounting

Learning Objectives


Basic Debt Accounting

The Amortization Schedule

Reconciling the Debt Account


Chapter 8 – Review Questions

Chapter 9 – Controls and Policies

Learning Objectives


Types of Gaming Theft

Accounting Controls


Comp Controls

Credit Controls

Front Money

Bingo Controls

Keno Controls

Race and Sports Book Controls

Slot Machine Controls

Dealer Controls

Chip and Token Controls

Table Game Controls

Ticket Controls

Collection Controls

Key Access Controls

Count Team Controls

Physical Access Controls

Vault Controls

Supervisor Controls

Surveillance Controls

Form Controls

Information Technology Controls

Money Laundering Controls

Internal Audit

Indicators of Control Weaknesses


Credit Policy

Credit Write-Off Policy

Fixed Asset Disposal Policy

Jackpot Approval Policy

Winnings Claim Period Policy

Ticket Payout Redemption Period


Chapter 9 – Review Questions

Chapter 10 – Financial Reports

Learning Objectives


Calculation of Income Statement

The Income Statement

The Balance Sheet

The Statement of Cash Flows

Statement Requirements

Reporting Classifications

The Direct Method

The Indirect Method

Financial Statement Disclosures

Profit Center Reporting

Other Accounting Reports


Chapter 10 – Review Questions

Chapter 11 – Reporting Requirements

Learning Objectives


Treatment as a Financial Institution

Currency Transaction Report

Suspicious Activity Report

Customer Reporting Avoidance Strategies

Transaction Tracking

Multiple Transaction Log

Check Register

Credit Management System

Player Rating System

Wire Transfer Log

Winnings Reporting Forms


Chapter 11 – Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation



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