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|Division of Gaming|
|Department of Administration|
The Division of Gaming in the Department of Administration (DOA)
oversees the gaming operations of
Under 13.94(1)(eg), Wis. Stats., the Legislative Audit Bureau is required to conduct a biennial performance evaluation. In completing our work, we reviewed:
Staffing and Expenditures
In fiscal year
We analyzed a judgmental selection
of expenditures from
Division officials believe that the experience and specialized knowledge of this employee justify this unusual arrangement, and they assert that contracting for legal services would have resulted in substantially higher costs. However, this arrangement warrants close monitoring to ensure these expenditures are reasonable and necessary.
State Gaming Revenue
Class III gaming at tribal casinos,
including slot machines and
table games such as blackjack, is
the source of most of the Stateís
revenue from gaming. Pari-mutuel
racing and charitable gaming
and crane games provide the
remaining portion. Revenue from
all gaming sources increased from
Class III gaming revenue from
payments by the tribes that operate
Tribal Revenue from Gaming
Compacts require each tribe to contract for an annual independent audit of its gaming operations and to submit the audit report to the Division and our office. We may release financial information only in aggregated form.
Indian gaming revenue from
all sources was approximately
Tribes incur gaming expenses
for general operations, including
employee salaries and fringe
benefits; promotion and marketing;
and depreciation. In aggregate,
tribal gaming expenses increased
The Stateís regulation of Indian gaming protects the interests of casino patrons, who expect the games to be fair, as well as both the tribes and the State, which depend on accurate accounting of revenue from Class III gaming activities to determine payments required under the compacts.
The Division conducts financial and compliance audits to verify tribal compliance with provisions of their compacts. From January 2007 through December 2009, it conducted 67 financial audits and 50 compliance audits.
We analyzed a random selection of the Divisionís working papers and other documentation associated with its 2009 on-site financial and compliance audits of five large casinos. The documents we reviewed were complete and accurate, and they indicated that the Division had followed its audit procedures.
In a prior audit, we expressed
concerns that the Division was not
independently identifying instances
in which amounts recorded by a
meter in an electronic gaming device
differed by at least
Since 2008, the Division has conducted monthly analyses to identify differences. If a difference for a device lasts for more than seven days, or if the Division believes differences are significant, it contacts the tribe to determine the cause. During its on-site audits, the Division now determines whether the tribes have conducted investigations of all remaining unresolved differences.
The compacts and statutes require
DOA to certify the vendors that
provide casinos with gaming-related
products and services.
The Division requires vendor
recertification every three years.
The average time required by
the Division to complete initial
certifications decreased from
Other Gaming Activities
The Division also licenses charitable
organizations that conduct bingo
and raffles, and it registers crane