In Canada at EB Games we also gut out games, but if the cd-key is on the case, the whole case goes behind the counter in lock-up, if its on the manual we gut the case and put the manual and discs behind the counter. In the case of say Dungeon Siege 2 where the cd-key is on the inside of the big black box and not the little cover, we put the whole case into the back and put two little ps2/xbox type plastic cases into the cover for it doesn't get squished.
Btw. People yell at us all the time for doing this stuff, but if they actually knew how many empty boxes got stolen cause someone thought the game was in it, they would be happy we gut the games cause then if they want the one without the cover/box they get like a 10% discount or something.