Rio Las Vegas alters dealer tip policy, drawing mixed reactions

Off-Strip casino Rio Las Vegas has introduced a new tip-out policy for table game dealers, shifting to a 50/50 split system that some employees criticize as unfair and potentially prone to favoritism.  

Under the new system, dealers will retain 50% of tips earned at their table, while the remaining half will be pooled and evenly distributed among all dealers working that day. Previously, all tips were pooled over a 24-hour period and divided equally. The change took effect on Friday.  

A memo from Rio management shared with The Las Review-Journal framed the shift as a fairer approach that ensures stable income, fosters teamwork, and enhances the guest experience. “This strategy strengthens our team and keeps us competitive in a changing market,” the memo stated.  

A spokesperson for Rio, which is operated by Dreamscape, defended the move in a statement to the Review-Journal: "At Rio, we believe in creating an environment where everyone is treated fairly, teamwork is rewarded, and the rewards of hard work are shared equitably. We decided to change our toke distribution policy to ensure greater fairness, transparency, and the continued success of our team members."

However, several Rio dealers have voiced skepticism, questioning whether the policy would truly benefit employees. A veteran dealer with over 40 years of experience in Las Vegas casinos expressed doubts while speaking to the cited media, noting he had "never heard of this, at least anywhere I've ever worked."

Another dealer warned that the system could lead to favoritism, as schedulers might assign the most lucrative tables to certain dealers in exchange for under-the-table payments. “This is open to corruption… someone will abuse their power,” the dealer said.  

Unlike workers at some other Las Vegas casinos, Rio dealers are not represented by a labor union. Some fear that the lack of collective bargaining power leaves them vulnerable. “They are taking advantage of desperate workers who won’t push back because they fear losing their jobs,” one dealer claimed.  

Rio Las Vegas is owned by Dreamscape, a New York-based real estate investment firm that acquired the property for $516 million in 2019.  

Dreamscape assumed full control of the casino in October 2023 and has committed $350 million to extensive renovations. The investment includes remodeling 1,500 hotel rooms, revamping the 117,000-square-foot casino floor, and introducing new dining concepts. Additionally, a six-outlet food court will be added.