PRICINGCOMPSANDCREDIT.pptVIP

Chapter 12PRICING: COMPS AND CREDIT Jeff L. Voyles MGM Grand Pricing Pricing – represented by the house advantage; the price the player is charged to play Fairness – responsibility of regulators, operators Management needs to: Offer the right price mix to attract and maintain guests without taking unfair advantage Find a balance that allows player to extend time played, enjoy their experience, and permit casino to make a profit Regulations allow for a broad range of payback percentages, allowing the casino to fluctuate house advantages throughout the casino floor. Casino Comps and Player Ratings Complimentary – something given free, or as a gift; often known as a “comp.” A casino comp strives to maintain a balance between profit and customer reward. History Offered to known guests with little research Method was inconsistent, unprofitable, unreliable Casinos realized importance of analyzing player’s betting, determining their worth for comps Now, floor supervisor is responsible to examine play of every qualified player Player Ratings Process by which a table game floor supervisor monitors the gambling routine of a patron. A gaming device monitors a player’s action through a computerized rating system. Data produced determines value of a player. Table Game Ratings Once required betting limit is met, supervisor asks if guest cares to be rated. At conclusion of play, floor supervisor closes out rating, calculates average bet, records time played, total amount in/out, and the win or loss. Casino Expected Win / Theoretical Win Average bet and length of play – important aspect of player rating. Data used to determine player’s worth by calculating theoretical win, determining comps the casino can offer. Theoretical win – expected win by casino throughout a length of play. The longer the session, the closer actual win is to the theoretical win. The Central Limit Theorem states that over a large number of independent trials, the casino will see a normal probab