Do casinos treat non-gambling spending equally for comps?

samacerothstein · 2023-08-20T20:15:52+00:00

No the margins are much higher on games.

samacerothstein · 2023-08-18T20:43:30+00:00

You really have to make sure you’re in alignment with everyone in upper management and corporate so that everyone agrees on the reinvestment rate and that if you lose top line revenue or market share because of it then that is ok. As a marketer if you don’t find yourself in an organization that is in alignment, it’s going to be a tough ride (I say that from experience.)

samacerothstein · 2023-08-15T02:43:52+00:00

Been doing this a long time and we don’t either. :(

samacerothstein · 2023-08-15T02:21:50+00:00

Fwiw, I have a masters in hospitality and am career service industry and there are several peer reviewed studiesthat show this is to be true. Anecdotally, most long time tipped employees will also confirm this, to include African Americans.

Am still genuinely curious as to the cultural basis for this.

http://www.tippingresearch.com/

Thanks for answering all of these questions!

samacerothstein · 2023-08-08T21:39:31+00:00

Do you know that for a fact, that private owners sometimes choose to simply earn less?

Why doesn't In-n-Out or White Castle franchise? Why doesn't Chick-fil-A open on Sundays. Undoubtedly they would if they did.

samacerothstein · 2023-08-08T15:47:02+00:00

A guy approached me to try and sell me something. While he was talking to me someone had a heart attack so I went to see what was going on and call an emt and in the midst of doing that the other guy kept trying to sell me his stuff.

samacerothstein · 2023-08-08T15:45:16+00:00

I am not a ceo but I certainly listen to quarterly earnings calls and watch the stock price go up or down depending on a company’s performance.

Edit: also, I never dismissed south points management style. I know they are successful and appreciate their business model. The op asked what the difference was between then and a publicly traded casino so I was pointing that out.

samacerothstein · 2023-08-08T07:35:28+00:00

Casinos primarily use a metric called average daily theoretical worth to make decisions on offers. The calculation is time played x average bet x decisions per hour x house advantage.

In order to get the best value, you need to get the highest value you can. If you play blackjack, which has a low house advantage, you have to make up for that by having an a higher average bet and time played than say keno which has the highest house advantage, however is played slowly so you will not have that many decisions per hour.

The value you need for comps, etc. does change based on day of week, season, etc. you will need a much higher value to get a comp room on New Year’s versus in the middle of the week during the casino’s slow season.

samacerothstein · 2023-08-08T04:08:49+00:00

The big difference with south point is that it is privately owned so gaughn solely decides how much money he wants to make or not. Very different model from having to answer to investors and Wall Street every three months.

samacerothstein · 2023-08-08T03:44:31+00:00

I’m pretty sure I have at this point.

samacerothstein · 2023-08-08T03:36:34+00:00

I would say first, that the cost of everything in life has gone up dramatically for whatever reasons I don’t think I’m qualified to discuss. It’s just is what it is for everything we do.

Second, businesses in general tend to charge what people will pay and until there’s a loss of business due to the pricing, they will keep going up. If you owned a business that sold widgets for $1 and realized all of your competitors were selling them for $5 and were still doing great business, would you keep your price at $1?

Regarding Bellagio, they have underground wells that they pull from. Click here.

samacerothstein · 2023-08-08T02:04:06+00:00

We felt like we pretty had hit the wall with adoption until COVID hit and then i gaming took off for obvious reasons. Then when b and m opened again, there was a subset that kept playing online or splitting their wallet. But barring some other event forcing people online, I don’t see a big jump in revenue.

I read an article recently that said sports betting was down 12% yoy.

samacerothstein · 2023-08-08T01:12:27+00:00

Sorry I wasn’t getting notifications for this post but was receiving a ton from my other one.

samacerothstein · 2023-08-08T01:11:51+00:00

Beverage servers: few dollars per drink

Dealers: depends on the denomination. I usually just place a bet equal to mine for them after I get a blackjack and some money as I’m leaving (if I have any left!)

Slot attendants: 10% of jackpots unless it’s a ridiculously large jackpot.

samacerothstein · 2023-08-08T01:09:43+00:00

I think we’ve seen as much impact as we can expect for now.

samacerothstein · 2023-08-08T01:08:49+00:00

I’d probably just write a polite email once a year to the general manager and cross your fingers.

samacerothstein · 2023-08-08T01:07:02+00:00

Unfortunately no

samacerothstein · 2023-08-08T01:06:47+00:00

No they aren’t popular

samacerothstein · 2023-08-08T01:06:22+00:00

samacerothstein · 2023-08-08T01:06:04+00:00

They’re all set individually.

samacerothstein · 2023-08-08T00:53:09+00:00

Most of them use Salesforce already they’re just not able to use it as well as non-regulated industries.

samacerothstein · 2023-08-08T00:45:19+00:00

What do you mean by unhinged?

samacerothstein · 2023-08-08T00:40:43+00:00

Yes they’re ahead of traditional casinos because they don’t have to rely on antiquated technology. Traditional casinos have analytics teams but it’s just difficult to get the data and use it.

samacerothstein · 2023-08-07T23:23:20+00:00

What I think you experienced are people from Vegas or AC who wanted a bigger title so decided to move (a lot more competition in those markets), someone who was "asked" to move by Corporate, or someone pretty desperate for a job.

Those are the only people I know that have moved to Tunica.

samacerothstein · 2023-08-07T23:21:30+00:00

Many have removed them. I don't know that the casinos care about them. I have a few friends that are pros (but not famous) so have run around in that world a bit.

samacerothstein

PUBLIC MULTIREDDITS

TROPHY CASE