Is Vegas Going Broke?

7 years ago
Is Vegas Going Broke?
15:15
24 Aug

(Photo: Lasvegastoppicks.com)

Las Vegas is a cultural phenomenon in a class of its own. It is a glittering city in Nevada, known throughout the world as the gambling Mecca of planet Earth; a place where gamblers head to shamelessly indulge their vice. If you like a bet or a game on the slots, or if you dream of taking the bankroll from tourists distracted by the whole Vegas experience, you are likely to have a special place in your heart for Las Vegas and all the craziness and flamboyance it offers.

But times are changing and in the grip of a worldwide recession. Vegas remains the theater of many a dream, but the residual benefits of being a resident or high roller there are reportedly diminishing with less comps offered by casinos as they tighten their belts in the midst of economic troubles. The various perks and comps that were once abundantly available, which have become an expected perk of what can be both a lucrative and very stressful lifestyle, are slowly becoming obsolete.



We know casinos exist to make a profit, and their pampering of high rollers —known as whales—via offers and comps, is not designed to make your stay a happy one. In one respect it is, but the purpose of a comp is a means to an end for the casino. If you are betting big, the casinos can expect that you are at least partially aware that you stand as a mathematical dog to the games you are playing in. In the eyes of the casino, if you are going to lose your money, they would prefer you lost it at their property. If that means giving you a lovely suite to sleep in and a few free meals, that is a good investment for them. It may look underhanded, but it is just the way that business works in the very concentrated and competitive casino world of Las Vegas.

So what are the big changes? Unfortunately what was once free is being charged for. The first is parking. Most Vegas casinos used to offer their customers free parking, which makes perfect sense as it seems crazy to have a customer put off by a parking charge only to lose many hundreds, if not thousands, of dollars in another casino that offers the customer no more than a free parking space. Contradicting what would seem to be sensible customer service, Vegas giants, the MGM resorts, which includes the famous Bellagio and the Aria casinos, now charge up to $10 per day to park your car.

This seems odd as other casinos not only offer free parking but also a valet parking service as well. Would this persuade you to go elsewhere? If even1% of their potential customers baulk at the parking fees on a matter of principle, this looks like bad business. As far as the customer is concerned, a slot machine is a slot machine whether here in my office or in Las Vegas. Surely the casino must attract and not repel prospective customers.



Resort fees are also a cause of consternation for Las Vegas regulars. The cost of a room in Las Vegas varies depending on the area and the property, but paying $200 or more for a room, in my opinion, should include things like Wi-Fi and the use of the properties facilities like gyms without incurring an additional cost. Unfortunately, this is not the case, and added to your room charge is a resort fee of up to $30 which covers the additional things whether you use the facilities or not.

Vegas properties noticed that many customers use price comparison websites to find the cheapest rooms. The biggest properties saw an opportunity and knocked $50 off the price of the rooms to get lots of customers via these sites, but found other ways of getting the difference back via these fees. Once their competitors saw this trick being used, they all started doing it because otherwise they could not match the apparent good value offered.

I always thought that drinks would be used as a loss leader as a hand of blackjack won for the casino at moderate stakes more than covers many ‘free’ drinks. This trend is changing too. Many slot machines are now being programmed to offer free drinks only when a gambler bets a certain amount. This is exactly the same as a redeemable bonus in online poker, but I think Vegas customers are used to more generous offers, particularly those who gamble at the highest stakes and expect (rightfully in my opinion) to get a few perks in return for their good custom. They could always go elsewhere!

The Internet has shone a light on these subtle but significant changes and the opportunistic marketers for the competitors might well make a point of offering the red carpet treatment with the affordable comps to high rollers who will feel more wanted and head in their direction. In this respect, the competitive nature of Vegas will keep everyone “honest” in respect of their being no cartel of anti-customer sentiment where comps are removed across the board. I hope this happens.



If I visit Las Vegas and take a few thousands dollars with me to gamble, I feel it is only right that the casinos plump my feathers whilst I gamble with them. I might win, but I know the risks and what I am really looking for is the best experience possible. Hopefully marketing savvy casinos will continue to offers these little perks to customers, who should always be sovereign. It is up to Vegas customers to go to where the best deal is. This will encourage casinos seeking to maximize their profits to retrace back in the customer's direction a little bit in order to entice them back to their properties.

One thing Las Vegas always is without fail is give and take. Mostly take.


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Malcolm comes from Consett in the North East of England and is an avid poker player and writer.Read more

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