Why Do Casinos Continue to Lower Comps

[Lucky Larry]

We'll after hearing the moans of fellow tier 2 "Select" members while at Isle last week we got our status letters when we arrive home. Big changes for members. The two big changes:

* 1.25 multiplier for the coin in; a 25% increase over past comps.(Don't know what upper tier "Paradise" multiplier is yet.)
* Reduced meals (just 2 breakfast/lunch meals) every two weeks. Dinner no longer included.

Select members loss:
* Select members previously had 1 automatic comp'ed meal/day (dinner included). For increased select play many received two meals per day. So Sweet C and I have gone from 4 meals/day (which we often used when we brought guests and family) to 8/month and no dinner meal comps.

*Many locals who earned Select ate and played daily at Isle. At $15-17.50 + for a dinner buffet of poor quality, I suspect few players will shell out the cash and few will use their comp cash to play for dinner. The same $30-35 will buy two nice seafood dinners and/or steak in the LC area.

There are several unintended consequences of these decisions. For us it means we no longer will stay/play the day after until we have lunch and it will pay for us to come later and eat before we check in. Both result in less casino play time - which may be a good thing!! Additionally, we won't have the comps to continue our practice of frequently bringing family and friends (often new players with us).

This new approach matches the "rumors" amongst the staff that the new GM (he's the former LDL finance man) was planning on bringing over more high rollers from LDL to Isle and cutting regular player comps. First, he brought over several of LDL's hosts. Then word came the video poker area was being moved to create a new VIP gaming area.

Interestingly, this past Wednesday as we checked into our room, one of the former LDL hosts was down the hall outside the big executive suites with magnums of champagne and cheese/fruit trays. Later we met the two couples who were in the suites as we headed down to the elevator. They were visiting the Isle for the first time. They shared they had been flown in from South Texas and were put into the suite for the next 5 days. We talked several times over the next two days as they came by and checked while Sweet C and I played VP. Both women play VP while the husbands play the tables and poker.

The overall strategy of bringing in more high rollers makes perfect financial sense. But, I sometimes wonder if executives realize that when the big dogs decide to go elsewhere (like the new upscale casino coming to LC) will they realize that all those average and local weekly players who have left could have made an impact as well. You would think that with the Isle in competition with L'Auberge (LDL) and the new incoming 3rd casino they worry about player loyalty.

[BillyJoe]

They should worry, Larry. It has always been the case that the small to medium regular players pay the bills. The large players are going to go to whoever woos them the best at any given time - no loyalty. I know in Biloxi, I rarely go to the Grand (the Caesars property) anymore, even though I am a Caesars Seven Star, since I get much more from the Beau Rivage right up the street.  

[JIMDUECE`SWILD]

New management comes in and they start cutting service. They want to cut expenses. The Trump Taj had 3 players clubs ( Mah-Raja, The President Club and the Bengal Club )  About 8 or 9 years ago they change the requirements for admission to these clubs. Many people were demoted to a lower club. There were 2,000 members removed from the Bengal Club. Most of these members were senior citizens who would come into AC on buses from Phila. & NY and other area. I went into the Bengal Club for lunch one day during the week. There was 6 people in the club. The Taj had lost ( IMO ) about 75% of their middle of the week business. The employees were just standing around doing nothing because of no customers. Then they will lay-off workers.
They succeeded in cutting expenses but I`ll always wonder how much they lost in income.
AC is always cutting comps and making it harder to earn comps. Then they wonder why people are supporting their local casino instead of coming to the shore.
 

[Lucky Larry]

New management comes in and they start cutting service. They want to cut expenses. The Trump Taj had 3 players clubs ( Mah-Raja, The President Club and the Bengal Club )  About 8 or 9 years ago they change the requirements for admission to these clubs. Many people were demoted to a lower club. There were 2,000 members removed from the Bengal Club. Most of these members were senior citizens who would come into AC on buses from Phila. & NY and other area. I went into the Bengal Club for lunch one day during the week. There was 6 people in the club. The Taj had lost ( IMO ) about 75% of their middle of the week business. The employees were just standing around doing nothing because of no customers. Then they will lay-off workers.
They succeeded in cutting expenses but I`ll always wonder how much they lost in income.
AC is always cutting comps and making it harder to earn comps. Then they wonder why people are supporting their local casino instead of coming to the shore.
 

We've heard the GM was told he has two years to gain market share and cut costs before the new third casino comes into the market. This also goes in the same vein as information from the marketing dept. When asked about the significantly higher "Paradise" tier status requirements the comment was made that the "Paradise" players wanted to make sure they were "Elite".

So, instead of weekly visits we'll reduce to once or twice a month and start traveling again. We've added several new places to our "Top 20" travel destinations. Hey!! Who knew there were so many casinos on the wayof our top 20 list!

[DaBurglar]

Atlantic City Casinos, as a whole, seem to be totally clueless (or totally careless, take your picsk) when it comes to Marketing and Servicing their customer Base(es)....why this is the case could be due to a multitude of reasons and scenarios, but IMHO here is how I would sum up the situation:   For soooooo many years, up until the year 2000 and then again in 2007 when the economy as a whole went in the ****ter, AC was able to make money without doing much of anything in terms of effort and creativity....being so close to NYC, Philly, BAltimore, DC and a crapload of other big population centers, AC was able to draw people at a sufficient rate to maintain acceptable profit levels, until the year 200 when both Indian Casinos hit their stride and the Internet began to cramp their style.  AC lost a few properties, notably the Sands and a couple others, but then stabilized and made some more money until the Great Recession sent the Boardwalk into a prolonged and sustained crisis....the HUGE new property at the end of the Boardwalk was halted midway through construction and STILL stands there, half baked, reminding everyone of how f'd up AC tends to be. AC people moan and complain about their predicament, namely the many Indian and local casinos open now in Pennsylvania and Delaware, not to mention the tracks in NYC and upstate NY and the Casinos in Connecticut.....AC complains about the Economy and a lot of other factors as being the reason they are just "barely" surviving and staying in business. Daburglar says "HORSE SHiite" to this "WOE is US"/feeling sorry for themselves mentality that permeates AC.  The fact is, AC sucks at the basics of Customer service, comps and making players WANT to visit their properties.   AC actually has a lot going for it, but their ridiculous lamentations about competition cramping their style make me laugh...think about it, they lament the "Competition" from the various sources surrounding them....wtf?  They actually think everyone should shutter their businesses/casinos and LET them win?  I mean comeon, astute business people recognize competition as a inevitable feature of business and also as an OPPORTUNITY to differentiate themselves and WIN business/market share.   AC (in comparison to LAs Vegas for instance) has a NOT inconsiderable tactical advantage simply in its locale, namely the Ocean-the Boardwalk-and a decent more mild climate.  AC's proximity to such HUGE population centers should provide ample customers, as compared to Vegas's relative isolation in the middle of the desert with only LA and Phoenix as the two major POPULATION centers within 4 hours driving. AC sucks at advertising and putting together sustained and coordinated marketing campaigns, and the city itself is full of corrupt, deadbeat lazy officials and business owners.  The Governor is trying to change all this in one fell swoop (or one Swell Poop) but it isnt likely to work for a ****load of reasons, mainly the fact that, as Governor, he has about 873 other priorities besides AC. As for myself, right now, the only reason I have been splitting my time between Vegas and AC, given that i LIVE in new England and fly out of Hartford Connecticut, is the fact that Airfares have increased significantly the last 2 to 2-1/2 years and security at McCarran Airport in Vegas makes flying in and out of there a time consuming effort.   I love the Boardwalk and AC's Ocean environment, but it is a close call in terms of the positives outweighing the negatives, mainly AC's awful customer service and attitude towards its players.

[spxChrome]

I guess they lower comps cause they know the players are going to come either way.
I know I used to get $200 a week free play at my local casino.  That is $800 a month and they had drawings almost everyday for several $500 winners in free play.
My comp play has been cut from $200 a week to $35 a week and the drawings are now $100 instead of $500.
Oh and to add,  you used to get 1 pt for every $15 they also raised that so now its 1pt for every $20 and they lowered "most" paytables from 9/6 to 8/5 and in high limits its even worse.  But as positive note they still have about 4 10/6 machines. 
But since the changes and the swap of the computer chips last Novemeber they just don't play the way they used to.  I know about 20 regulars 1 retired guy who I trust the most who plays everyday like a job from 8-1 for the past 10 years, like clockwork up or down win or loose he plays and then quits at 1pm 5 days a week and he even says they don't play the same as they used to.  We have all played long enough to know it is different.  Even on the main bank of machines which we play 90% of the time.  The chips were changed but the paytables did not.  You used to be able to play several hours and win or loose a few hundred.  Now it is like you have to go through $1200 just to get a quad.  But the main difference is the frequency of the lower hands.  You used to be able to average about 75 hands per $100 now its about 40-50.  The FH and Flushes/Straights just don't come as much as they used to to prolong your play.
 

[backsider]

I feel your pain. When Im home in Indiana, Belterra casino used to stuff my mailbox with free nights and lots of other good stuff. The mail still comes but now they want $$ and everything has been cut back.

[brmcc74]

They lower comps because they can. Just like @ the gas pump. One casino in particular raises our comp $ when we frequent less.

[backsider]

They lower comps because they can. Just like @ the gas pump. One casino in particular raises our comp $ when we frequent less.
 My play has gone up and I still get the shaft. I feel if these places are going to tighten their belts they shouldnt squeeze their regulars. I wont go there because of it.

[ravenbynight111]

 Larry the high rollers deal will not LAST at the isle. I know some high rollers here in san antonio and they would not even walk into the isle. It is a c+ hotel and casino on a good day. I could see a large player going down to eat that wonderful buffet that has food not fit for a dog. If the cash back and comps are not there people will go back to vegas.Here is the deal if I go to vegas with my wife it cost me about 500 to 650 in airfare. I always get free rooms and food. The reason i have been going to Lc is the comps are good and its is a 5 hour drive and i really do not have a ton of time.I work for my self so,its hard for me to be away for a long period of time.If the comps are down, i will go to vegas 3 times a year, instead of lake charles 7 to 10 times a year. We all have choices and I am not going to let casinos dictate there bs to me.There is a lot of casinos in this country.One other point are the comps at the isle there idea or is it a request from there headquaters. When the 3rd casino opens that will all change.Funny we were thinking  about going over the 22nd of july for a couple of days. Well my son is going to vegas that weekend,we may go there instead after getiing the info. thanks larry