Part III: Business & Regulation · Banking, Chips & Financial Operations

63. Variance

Count Processes

A variance is any discrepancy between the expected and actual amounts counted during the count process, or between the count total and the amount recorded on accounting reports. Variances can occur due to counting errors, dropped or miscounted items, recording errors, theft, or machine malfunctions. When a variance is identified, the count team must take immediate corrective action: recounting the affected items, checking counting machine accuracy, and investigating potential sources of the discrepancy. Unresolved variances must be documented on a Drop Variance Report that includes the date, source (if known), measures taken to identify the source, and the amount of the adjustment. Significant or recurring variances trigger additional investigation by accounting and possibly surveillance.

In practice

Most jurisdictions require Drop Variance Reports to be filed with the gaming regulator. If the source of a variance cannot be identified, adjustments are typically applied to a predetermined default table or slot machine as specified in internal controls.

One entry from the Casino Industry Glossary — 1,157 terms written for surveillance, compliance and operations professionals rather than for players. Definitions describe industry usage; where a term carries a regulatory meaning, verify against the instrument that governs your jurisdiction.