Casinos again loosen up on rooms, meals

Strategy from Vegas’ Rat Pack days revived

Monday, Dec. 15, 2008 | 2 a.m.

Strip casinos lost the business of people like Fred Jones years ago, when the business model for which the industry was known — free meals and rooms for gamblers, even low rollers — was phased out.

It was replaced by a strategy focused on maximizing profit across all business segments.

Now, an unprecedented falloff in business has many casinos dusting off old strategies and returning to less profitable, though perhaps more predictable, ways of earning money.

Some hotels are offering double-digit discounts on rates as well as package deals that nearly equal the cost of a room. One example: On selected days in January, rooms at MGM Grand will go for $59 and include a $25 “activity credit,” $10 in free slot play and nightclub passes.

Other hotels are offering free stays for customers with gambler loyalty cards.

Casinos are willing to bet customers will offset the cost of these deals with gambling losses — even when there’s little evidence that customers will gamble. (Some customers haven’t used their cards and others haven’t gambled with them much.)

Last week, the Terrible’s-owned casinos in Primm went a step further by advertising free rooms as well as passes to rides and shows for locals. Customers who accept the offer might end up spending more money in the casino than they would otherwise — or nothing at all.

Many locals casinos still have loss leaders such as cheap buffets and drinks and typically offer better gambling deals than Strip properties.

Lately, these lines are blurring, with Excalibur offering a 2-for-1 buffet, South Point offering half-off meals and other purchases for gamblers using loyalty card points and the Sahara offering cash back, free slot play and “comp dollars” that can be spent on rooms, in restaurants and in stores.

Such deals don’t impress Jones, who remembers when small-time gamblers like him could get a free meal from the pit boss just by asking.

“Pit bosses and supervisors just don’t have that authority to give comps anymore,” he said. “Now, if you want a meal, you’d better have enough points in your account.”

Jones, a 27-year resident of Las Vegas, has rarely visited the Strip since the Stardust was torn down. He liked the property’s folksy atmosphere and the attention paid to locals. The $6.99 prime rib was worth a trip, too.

“I might go on the Strip if we have friends from out of town,” he said.

For many, the loss of budget hotels in recent years, as well as the opening of luxury hotels, was yet another sign of rapidly disappearing giveaways for the masses. Perks would now be determined by conservatively programmed computers.

Before the downturn, some Strip executives said freebies for low-rollers or nongamblers were unrealistic because they were unprofitable and inconsistent with the image of a high-end resort.

How can we make a profit if we’re giving stuff away? That’s so last century! Ever heard of inflation and labor costs? they seemed to say.

And yet, that’s how casinos used to make money.

As if playing the last card in the deck, they are trying it again in the hope that the goodwill will encourage customers to spread more money around.

With roughly 8 percent of hotel rooms in Las Vegas going unfilled and gambling revenue down 14 percent on the Strip so far this year, this also goes for properties that are a bit rusty in the deals department.

Before he moved to Las Vegas from Los Angeles, Jones gambled in Las Vegas during the Rat Pack days. Memories of such experiences die hard.

That’s one reason why Jones, whose opinion reflects that of countless Las Vegas customers, believes this is too little, too late.

Discussion: 30 comments so far…

By terjen

12/15/08 at 5:19 a.m.

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When they get back to gambling and forget about playing, people would return. When they introduced, "did you have fun, Playing..." the gambling was gone. Now you are expected to enjoy your play as you pay $100-$300 per hour for the priviledge. Winning is no longer an option. So like many good customers, I did what good customers always have done, I just went away. I want to gamble with a chance to win, I do not want to play any more.
By casinokid

12/15/08 at 6:57 a.m.

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I also like to gamble, today it's called Entertainment I don't want to be Entertained! I want to gamble, If i wanted to be Entertained I would go to NY. and see a broadway show or see the San Diego zoo for crying out loud I want to Gamble and have a fair game at it not be condition to beleive that is ok to lose because it's "Entertainment"

Thats why they keep tweeking the games no more 3 to 1 blackjack games on single decks.
Continuious shuffling machines also lean heavily for the house.
By pmmart

12/15/08 at 6:59 a.m.

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Same with us Terjen .. we USED to go to the Stardust where you could always find a place to park and then make our rounds of the 4 casinos on that end of the strip..

Now you need to consider yourself a tourist if you are going to go to the strip because that's how much money you will spend in an evening out.

I think that the strip is paying for corporate mentality ... numbers crunchers are running the business instead of the old days people persons.

You would need to spend a lot of time in casino's today if you want to see anyone waiting for a hand pay.
By judgesmales

12/15/08 at 7:17 a.m.

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You want gamblers to come back?

That's easy. Change the blackjack rules back to what they used to be, and get rid of the automatic shufflers. What good is "getting in more hands" with a shuffler if the table is empty?

Casino operators all through Las Vegas have made blackjack virtually unplayable for anyone who knows what they're doing. The casinos are so worried that the five 70-year-old card counters still alive are going to come in and win a couple hundred dollars, they've taken away practically every rule that favored the players.

Take a look at the blackjack pits all over town, especially the 6/5 payout per blackjack. Those pits are DEAD quiet.

Gee, I wonder why the Nevada table game winnings are tumbling month after month? Because no one with a brain will bother playing a game so badly tilted in the house's favor. We're gamblers, not idiots.
By cignettis

12/15/08 at 7:24 a.m.

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We used to hit Vegas 5 to 6 times a year. The strip went high class so we went to the local casinos. Then this year they really tightened up the slots and then we stopped going. Getting ripped off is not fun. The only reason I needed a room was for sleep not luxury. Maybe all those stars and name musicans can pay the heavy toll because the Joe Six Packs are gone.
By acrosby85254

12/15/08 at 8:24 a.m.

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Gamblers, all hear this.... I can guarantee you ALL a 50% payback on your money with the casino experience for limited travel with my 'patened system'.... INTERESTED???? I know you are, in these hard times and looking for a distraction to these economic problems. All right here you go...... just give me your money and Ill punch you in the face about 4 or 5 times to simulate the casino experience, then I'll give you back half of your cash. You WILL not find better odds any where in Vegas, act fast cause 'trips' are going fast.......
By acrosby85254

12/15/08 at 8:49 a.m.

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No offense please, I am a firm believer of a diversity of thoughts and opinions and tolerant in nature, but some of you really NEED to read what you TYPE. Man, just listen to yourselves, " I no longer go/and dislike the casinos cause I loose my money FASTER, rather than 'them' letting me PLAY and loose it SLOWLY"???? WHAT?? That, to me, makes absolutely no sense what so ever. I know 'people' enjoy games of loss and chance and if you are one.... try this. Just drive on the opposite lanes of traffic on the 15 freeway at 80 miles per hour, now that to me is THE ultimate game of chance.... please, if you do this, and live.... seek out a GA meeting.... there are plenty to be found around the valley.
By bjsdj

12/15/08 at 8:58 a.m.

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Well I for one enjoy Vegas, however in the past 10 years we see a lot of changes when we come. Yes we love the comps and yes there are fewer of them now days. What does bother me is to have a casino host tell me flat out that because I am a small time player(playing 5-10 dollar tables)that my business is not important enough to be bothered with. What they need to realize is that people like myself have the cost of the airline ticket, transports to and from airports, and hotel cost that have to be figured in our budget, but to play at a 5 dollar blackjack table for 17 hours and be told no I hadn't earned a free buffet I think is going a little to far.
By tvegas

12/15/08 at 9:26 a.m.

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Your an idiot if you "gamble" in this town.
By lvsundog

12/15/08 at 9:29 a.m.

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acrosby85254, I liked your message. Your 50% payback offer puts things in perspective.
By homer

12/15/08 at 9:32 a.m.

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I have been a resident of Vegas for over twenty years and have worked at these joints. It is refreshing to know that people like acrosby85254 have all of the answers,don't gamble and like to insult people who do. In reality acrosby85254 should keep his comments to himself unless he has a comment that is relative.
The Vegas casinos have taken their customers for granted for so long by lowering pay outs that were in place for decades, tightening slot and poker machines and insulting their customers every chance they got. Now the worm has turned and some of the best of them are headed for bankruptcy. Why do you think the billionaire Packer is backing out of big investments in Vegas? The customer base has been ruined, goodwill gone to hell. I used to gamble at the most luxurious casino on Rampart ( the casino with actual architecture)until I finally got the message. It is not a gamble a customer will get but a robbery without a weapon and no smile to follow. I hope they all go belly up.
By hermit

12/15/08 at 11:06 a.m.

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What most of you seem to forget is the fact that the plan that the casinos was using worked for the better part of the last twenty years. They gave the people what they made them want and it worked. Only in the last year has the tide turned and that was not the casionos fault. Those of you who are posting that they want to gamble and not play are the minority. Who would you cater to the minority or the majority? Get out of your 1960's and 70's time frame, it is 2008 now. If Harrahs or MGM go into bankruptcy like some of you seem to want say goodbye to the Culinary contracts since they will be the first thing to go.
By acrosby85254

12/15/08 at 11:31 a.m.

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Rebuttal: I do NOT have all the answers, and my comment is relative.... as are yours and anyone else that wishes to be heard. P.S. .... I do gamble, I just don't throw it away though.
By cassierides

12/15/08 at 11:38 a.m.

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Come to Wisconsin....land of beauty and over 20 casinos! LOOSE slots double deck pitch. Hand shuffles....and a pit boss can comp your drink or buy you a meal. ..and you will get comped like you did back in the day in Vegas! wonderful properties...2 brand new opened in the last 3 months and 3 more doing complete overhauls/renovations. Every game you want in Vegas is here....shall I make your reservations? pun intended!
By goingbust

12/15/08 at 11:39 a.m.

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Bye bye "culinary contracts" :sadwave:, whatever they are. Are pastry chefs gettin $20 an hour?
By casinokid

12/15/08 at 12:43 p.m.

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The comments made by acrosby85254 are very similar to those in the vegas vaction movie starring chevy chase was funny then and also funny now however it was someone else's work.
By tvegas

12/15/08 at 1:10 p.m.

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It's amazing to me the people justify a casino's existence due to the fact they provide "jobs" to the local economy.

Those job holders are nothing more than "accessories after the fact" in the looting of the public by the thieves who run the casinos.

They deserve no consideration whatsoever.
By davidwayneosedach

12/15/08 at 1:44 p.m.

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In this terrible recession which is incredibly worsening Casinos are being forced to take desperate measures. Who knows? Maybe comping food and rooms to the low rollers might just work.
By jfnance32

12/15/08 at 2:02 p.m.

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A big bump in the hotel tax will solve all these problems.
By johnevegas

12/15/08 at 3:46 p.m.

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"Those job holders are nothing more than "accessories after the fact" in the looting of the public by the thieves who run the casinos."

And you live in Vegas because?
By maxdaddy254

12/15/08 at 4:26 p.m.

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I live in Southern CA and love going to Vegas. I've been doing it for over 30 years, so I've seen a lot of changes. I always enjoyed seeing the next new hotel, but also was sad to see an old friend go away. I've never been a high roller, more a "medium roller." When the Frontier went away, I lost a dear friend. I used to enjoy staying in their suites that actually had a door between the bedroom and the "living room." I would play blackjack at their $25 table and have the same rules that they had at the $200 table of the Wynn. My last stay in Vegas was at the TI in Nov. 07. The only reason for staying there was the trip was to celebrate a birthday with a group. I was very discouraged by the way the casinos were trying to bleed the blackjack player. I hope to visit in January, maybe the casinos will be inviting for blackjack players.
By davemedsker

12/15/08 at 4:54 p.m.

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I yearn for old vegas. I went to ellis island casino last month and the 4.99 steak was 7.99 and they took the bread annd yummy veggies for some over cooked beans. fun in a casino? meh.
By jfnance32

12/15/08 at 6:21 p.m.

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Reality Check.........Everybody does know that gambling is a scam to take money from idiots.
By denro

12/15/08 at 6:40 p.m.

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I think Las Vegas is in a fix. In this new (read sour) economy and moving forward I am not sure that many people will look at gaming the same way for some time. Couple that with expensive rooms and food and there seems to be a need for a new formula. I have been coming to this town since the early fifties, but all this that is happening now is a game changer.
By opinion101

12/15/08 at 7:26 p.m.

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Remember the days? Breakfast for $0.69. Prime Rib for $2.99? If you want the new population of locals, which amounts to lots of people, to show up at the casino's you have to feed them, cheap. Shrimp Cocktails for $0.50. No one is going to hop in their car and drive down to the casino, unless they can get a cheap meal. The out-of-towners that show up will have money for the more expensive meals. And, yes there will be half the out-of-towners coming to Vegas for a couple years......have you read the news, the economy is in a recession. The competitive will survive. The others will not. $2 billion for a Casino.....get real.
By kramer

12/15/08 at 10:59 p.m.

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Pigs get fat and Hogs get butchered.

Failure equals more competition. Bring it on, time to reinvent the business model.
By durazzo

12/16/08 at 12:11 a.m.

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Great time for comped rooms. I kid you not but I'm no big player and Wynn of all people comped me three nights at his Encore with a $150.00 credit the week of CES. I recommend you play a little and get the comps. Same thing happened to me at The Palazzo about a month ago (three free nights). One can't complain about the big boys not giving freebies to little players like myself. Just be consistent and use your card.It really is that kind of time in Vegas.
By azsk8fan

12/16/08 at 11:16 a.m.

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My sister and her friend are coming here the last Fri/Sat of January and staying at the New York New York and it's costing them $400 for the room for 2 nights (week-end rates are always too high). I wanted to stay on the strip with them but I couldn't find a cheap enough room anywhere near the New York New York for a Fri/Sat night even though I'm a local and the rooms are less than what, 80% filled? It's too bad they can't offer some 2night/$100 on a Fri/Sat to a local because then I might stick around and gamble - as it is now I'll go pick them up and we'll stay off the strip until they're ready to go back to their room for the night. It just doesn't make sense to leave rooms sit vacant rather than give a local a deal.
By Rverp1

12/16/08 at 4:10 p.m.

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People used to come to Vegas in hard times because it was a cheap vacation. They would then decide when they were in the heat of the moment how much they wanted to burn...They usually spent more than they wanted to but that was because they were here..A vacation away from home has great allure for people, and if it were cheap again people would love to come back to Vegas....
By Robert11955

12/16/08 at 5:43 p.m.

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Cassierides, They could build a 100 gorgeous casinos with all the goodies, I ain't going. There is only one Vegas, and I will visit every 4 months or so. And yes, I think we all miss the Stardust.