Are You Still Tipping Poker Dealers $1?

We all experience the negative impacts of inflation. I recently bought some personal hygiene items at the local Walmart and was surprised at the $99 total. Economists inform us that wages have kept up with the inflated prices in aggregate so far. Yet, logic tells us that some types of workers will be negatively impacted unless customers change their behavior.

Those people who work for tips that are not tied directly to the cost of a good or service are the most harmed by inflation. This includes valets, hotel concierges, and poker dealers.

A poker dealer is most often tipped at the end of a hand by the player who wins the pot. I started playing poker in casinos in 2004. The custom then was to tip the dealer $1 in your typical small game. At that time, I was playing 3–6 and 4–8 limit Texas Holdem. By 2007 most of the games were no-limit Holdem with blinds of 1–2 and 1–3. The $1 a hand tip was still the norm.

Most people still play smaller games. Casinos have more 1–2 or 1–3 games than any other level and the typical tip is still $1. The average poker dealer has not had a raise in almost 20 years. According to the Bureau of Labor Statistics, consumer prices have increased by 59.3% since 2004. A $100 basket of goods in 2004 costs $159.30 today.

The challenge for people in these jobs is that their tips are not indexed to a good or service sold. For example, restaurant prices and checks have increased, and the dollar value of a 20% tip has increased right along with it. Not so for your local poker dealer. It has been difficult in the last two years for casinos to find enough dealers. Seems there might be a connection. Come on folks, the standard tip needs to be $2.