Contrary to popular belief, casinos are not a one-way money operation. Casinos invest a lot of money in keeping their clients happy because they appreciate the loyalty that they give to the casino. This “giving back” is also known as player retribution. Player retribution should not be confused with marketing expenses, because it is two different things.
To get the perks that come with player retribution, a player needs to be a member of the player’s club in order to use the different reward cards. So, for example, marketing expenses like printing and mailing direct mail offers are not considered player retribution. So what types of player reinvestment exist?
This is the most popular form that casinos use to give back to their clients. Basically, the way they work is that players will earn points for the amount of dollars that they spend wagering. Then, they can exchange the points for complimentary services, or “comps”, free plays, casino purchases, or cashback. The point rates in all of the casinos are diverse since they have different rewards programs. In other words, it is really up to the casino to see how much they wish to return back to the club members, usually the rate goes from a 2% to a 5%.
Like we said before, comps are complimentary services that the casino gives their customers. They go from free meals and beverages to air fare, hotel rooms and limousine services. It all depends on how much you play and the player status you have. High rollers usually receive crazy comps like $10000 shopping sprees and VIP tickets to the hottest shows. Casinos usually calculate comps by giving back a percent of the theoretical win. The standard comp accrual rate goes from 3% to 6%.
Promotions and Parties
Casinos also make tons of drawings for special prizes like cars and casino giveaways or for things like free play money and chips. Besides, they host special events for their club members. They usually organize monthly birthday parties, theme parties (Christmas, New Year, Super Bowl, etc.). The cost of all of these shindigs comes out of the budget for player reinvestment.
So in total, it could be said that most casinos spend from 20-40% of their tracked gaming revenue on player reinvestment. They do this because they understand it is important to rewards clients for their loyalty and preference. Online casinos do this too, in fact, no other casino has better promotions and VIP programs for their valued customers than Silver Oaks Casino!