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As Far as I’m Concerned
by Anthony Curtis

Oh, No! Slot Clubs are Getting Better
As technology improves, players’ privacy could become an issue

For the past few months, Las Vegans have been subjected to a barrage of advertising from Coast Casinos (Barbary Coast, Gold Coast, Orleans, and Suncoast) touting the rollout of its new linked mega player-tracking system, the Coast Club. The campaign consisted of billboard and print ads heralding “the best slot club ever.” Sure, it’s a good club. Coast Casinos have always had good slot clubs. But since the new one’s fairly similar to the old, it raises a question: For whom is it the best slot club ever-the customer or the casino?

Since their inception, slot clubs have had their detractors among players. Many of the arguments against joining them are foolish, often grounded in the belief that a machine will automatically pay out less with a card inserted or something to that effect. But other objections have revolved around considerations of privacy-not wanting records available to the IRS or avoiding being placed on mailing lists. I (along with many others) maintained for years that these concerns were overblown and that what you give up by not joining is worth far more than what you protect. I still feel that way. But for some, the time could be approaching when the privacy concern will be worth thinking about.

One reason I dismissed privacy arguments over the years was that I knew the clubs didn’t have the capacity to crunch a lot of player data efficiently. They had the potential, but not the at-hand ability. Early on, casinos rightly placed the emphasis on getting the rewards schemes up to speed and making sure that players could access benefits without glitches. Powerful database management was a carrot at the end of the stick for later. But later might be here.

I’ve discussed the impending new level of slot club sophistication in this column before, but only in speculative terms. Now it appears things are getting serious. In a speech to the recent Gaming Technology Summit in Las Vegas, Harrah’s Entertainment’s CEO, Gary Loveman, described a new program Harrah’s calls “Marketing at Slots.” The following comes from an article in the Las Vegas Sun:

“Every customer based on [his gambling activity] gets treated differently,” Loveman said. “This is a very controversial notion” and is different from the retail industry, where customers are generally treated the same regardless of what they spend in a store.

From what I surmise, this system-introduced at the Harrah’s in East Chicago, IN, but about to be implemented nationally-will allow the casino to step in at any time to give players (especially losers) comps and other incentives to ease the pain. In other words, they can pinpoint where you stand (ahead or behind) in your session, cross-reference with your play history, and make a calculated estimation of what they can give you to keep you playing long enough to make up for it. It’s all done in real time, as you sit at your machine.

Of course, this tactic is of no small concern to gambling-addiction groups and I can see why. But what jumps out at me is the possibility that the long-held criterion of earning comps in return for action may soon be in jeopardy. If a slot club system can determine that you’re an overall winner, then requisition your allocation (based on action) to give to a long-term loser, a prime motivator for joining will be eliminated. Casinos will argue that the more deserving are getting the comps, and from their standpoint, that’s probably true. But it’s not good news for those who’ve spent time learning to cut the casino edge.

How close is this to becoming a global casino reality? Take that new Coast club, for example. Have they built in new tools to make these evaluations? Probably not; at least not to the extent that Harrah’s has. Harrah’s, during Loveman’s regime, has been a technology monster, and the capabilities of the company’s Total Rewards are far beyond most other clubs. It will take time for others to develop similar systems. That is, unless they have the bucks to buy it ready-made.

In an upcoming book, Whale Hunt in the Desert, author Deke Castleman highlights the incredible database capabilities of innovative new player-tracking software called Mariposa, now on the market. Whale Hunt is the story of Las Vegas superhost Steve Cyr, so the following comes from the perspective of how the software can help a host better do his job, which is to part players from their money.

With Mariposa’s player-contact program, all of a host’s players have dedicated file space in the marketing database, accessible with the click of a mouse.… When a player arrives at the casino, Mariposa uses mapping technology to locate him, via the existing player-tracking system, on the casino floor. A table-game player hands his rating card to a floorman who types the name into the system. A slot player inserts his club card into a machine, which relays the information to the marketing database at light speed. When the host pulls up a real-time map of the casino, he sees exactly where his two players are sitting. All a host’s customers in the casino are displayed on the map whenever he cares to look. Now that he knows he has two players on property, the host simply has to open their files to access accrued details about them.… The host can use Mariposa’s filters to get a big-picture view of his players. The end game is to make the player feel like he’s special, that someone at his favorite casino remembers him.

Notice that wording, “the end game.” I’m not sure I like the sound of that.

Anthony Curtis is the publisher of the Las Vegas Advisor. For ordering information, call 800/244-2224 or log onto www.LasVegasAdvisor.com.

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