Importance of Effective Regulation • Understanding Vulnerabilities: • Cash intensive environment intensifies temptation to steal. • A cash intensive environment without good internal controls significantly increases the likelihood of theft and fraud. • Increasing the probability of discovery decreases the probability that theft or fraud will succeed.
Ensuring that Tribes are the Primary Beneficiaries of Gaming Revenues • Occupational Fraud and Abuse is Projected to Cost Businesses Worldwide More than $3.5 Trillion Annually. • Approximately 5% of the Annual Revenues of an Average business will be lost to Occupational Fraud. • Frauds lasted a median of 18 months before being detected. • Over 35% of the Loss is Attributable the Absence of Internal Control Systems. • Over 19%% of the Loss is Attributable to the Override of Existing Controls.
Source: 2012 Report to the Nations on Occupational Fraud and Abuse, Association of Certified Fraud Examiners ( 2012 Report ).
Homer Law, Chtd. 2013
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