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Great times for COMP WHORES
By DONALD WITTKOWSKI Staff Writer pressofAtlanticCity.com |
<!-- AP Content -->LAS VEGAS — One gaming executive said it is the way the casinos show their affection for their customers.
Each year, the gaming industry spends billions of dollars on comps, the promotional giveaways that include free hotel rooms, meals, flights, show tickets, slot play, and other freebies to reward patrons for their business.
In good news for customers, most gaming markets throughout the country will be increasing those comps as casinos aggressively fight for business in the shaky economy, panelists said Thursday during an industry conference.
“I don’t know necessarily that we will cut back in the tough economy,” said Kirk Houser, vice president of casino marketing for L’Auberge du Lac Hotel & Casino in Lake Charles, La.
The slumping Atlantic City market, however, is an exception. Figures compiled by the New Jersey Division of Gaming Enforcement show that the 11 Atlantic City casino hotels spent about $1.3 billion for comps in 2010, down from $1.4 billion in 2009 and $1.5 billion in 2008.
Casinos use comps to build loyalty among their best customers and to attract new ones, often one-upping their competitors by offering even more extravagant deals. Promotional giveaways can range from a few dollars of free play on a slot machine to lavish jet travel and high-roller suites.
“You have to hug and kiss your customers,” Armen Yemenidjian, director of player development for Tropicana Las Vegas, said of comping.
As Las Vegas begins to recover from the recession, there are signs that casinos are getting even more generous with their comps, to further stimulate visits to the nation’s largest gaming market.
“In my opinion, it is probably the highest it’s ever been,” Yemenidjian said during a panel discussion of casino marketing executives at the Global Gaming Expo.
Panelists said casinos spend an estimated 6 percent to 10 percent of their gross revenue on comps, which would amount to billions of dollars nationwide. Gaming executives characterized it as “player reinvestment.”
“Reinvest more into customers who are loyal to your casino,” Yemenidjian told the audience, comprised of casino marketing officials.
Comping has become so deeply ingrained in the gaming industry that customers look at it as “a bit of entitlement,” said Joshua Kanter, a vice president with Caesars Entertainment Corp.
“Customers think of it as something they have earned,” Kanter said. “That’s just the reality we have created as an industry over a number of years.”
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Originally Posted by jjgold
I always see what I get get comped. Sometimes it's the difference of a +EV trip. 
