Caesars unveils credit card

By Liz Benston (contact)

Monday, Dec. 8, 2003 | 10:48 a.m.

Gambler loyalty cards have become ubiquitous at Las Vegas Strip casinos in recent years and have led to increases in casino revenue as customers spend more of their dollars at participating casino chains.

Park Place Entertainment Corp. has taken the concept a step further by rolling out a company-branded credit card. Taking a page from popular frequent airline traveler and retail programs, the Caesars Entertainment MasterCard allows customers to receive 1 percent cash back on their purchases -- money that can be redeemed at company-owned retail shops, restaurants, shows and other venues across 15 Park Place resorts nationwide.

"It's just another way to give more back to the customer and hopefully increase their loyalty," said Steve Rosen, senior vice president of marketing for Park Place. "No matter where they go or what they do, the card will allow them to get a comp at any of our properties."

The credit card concept -- while not yet widely used in the casino industry -- isn't new to Las Vegas. Visa introduced a Las Vegas credit card several years ago allowing customers to accumulate reward dollars that could be spent at several Las Vegas casinos.

VEGAS.com, a booking website for travel, hotels, entertainment, restaurants and other venues, offers a credit card that can rack up points redeemable at casinos citywide. VEGAS.com is a sister company of the Las Vegas Sun.

Park Place's Hilton hotel-casinos in Las Vegas, Atlantic City and Reno have another credit card program through Hilton Hotels Corp., which used to own Park Place.

Park Place had been approached by several companies about introducing a card program, Rosen said. The company ultimately chose Jupiter Bank, a privately held credit card company that issues similar rewards cards for airlines.

The program is designed to operate at minimal cost to Park Place and is aimed at increasing customer loyalty rather than generating a profit, Rosen said. It will be jointly marketed by Park Place and Jupiter Bank, which began mailing out offers that will reach customers starting this week.

Customers will receive $10 in comps the first time they use the card, which offers a zero percent introductory rate on balance transfers for six months and a 12.99 percent annual percentage rate therafter.

The program follows moves by some casino companies to start rewarding customers for non-casino spending such as retail and hotel rooms.

In April, Park Place unveiled a new version of its Connection Card gambler's club that allows guests to earn points toward free hotel rooms, dining, retail purchases and shows across the company's five Las Vegas properties.

The Connection Card, which can be used at any Park Place property, has grown to 23.5 million members and has led to an increase in customers who spend money across company resorts.

"We are seeing people go to multiple properties," he said.

The company is studying cardholder information to learn more about customer preferences, such as whether customers at the Flamingo gravitate toward more-expensive attractions at Caesars Palace, for example.

"We're still gaining momentum and learning," he said.