Cash or Comps?
The right choice can increase your net win
by Basil Nestor
The question of cash back versus comps is one of the “big three.” When you consider all of the gambling strategies for slot machines and video poker, and all the various procedures and tactics for winning, everything boils down to three basic questions.
1. Where to play? This includes strategies for casino selection and game selection.
2. How to play? This includes strategies for specific games and choices such as max credits on a lower-denomination game or lesser bets on a higher-denomination contest.
3. What to aim for? This involves bankroll choices and a system of evaluating net payback. Net payback is more than just profit from winning; it also includes comps and cash-back promotions.
So item 3 is an essential part of an overall strategy. In fact, the first two items are all about getting to the third—the prizes. Comps and cash-back promotions have value, just as jackpots do. They are all prizes that we claim on the field of conquest, booty that we plunder from our opponents. That is why it is so exciting to hit a jackpot or to get an awesome freebie.
Our goal is to capture the most while risking the least. Thus comps and cash back must be evaluated against each other and added to game paybacks when you’re developing a long-term strategy.
Let’s look at various tactics for making those evaluations.
Simple Arithmetic
Your opponent is the casino. They have teams of mathematicians and accountants who do nothing but estimate the value of stuff. The only way to slant the playing field back towards you is to take pen to paper and do a few calculations for yourself.
The first part is very simple. It begins with zero.
A comp has no value if it is a comp you don’t want. Here’s an extreme example. Let’s say that you don’t like the rooms, food, shows, gifts, and promotions at Casino Zed. And they don’t have a cash-back program. You don’t even like the drinks at the casino. The only thing you like (maybe) is the games. So Casino Zed’s comps are worth nothing to you, and the resulting arithmetic is uncomplicated. You just look for games you like. Then you evaluate Casino Zed’s paybacks (more on that a little later), and if the numbers look attractive, you unfold the Andy Jacksons and go for it. Simple.
But of course, casinos are more beguiling in the real world. They tempt you with a cornucopia of goodies. So the next step is to attach real numbers to the various comps and cash-back promotions you are offered. When you do this, it is important to ignore supposed “rack rates” for rooms and such. Rather, you should decide honestly how much you would pay for a particular item or service if the item were not comped. Would you even purchase the item?
Specifically, a room at Casino Zed is worth how much to you? Meals are worth how much to you? Go down the list for everything that Casino Zed offers you as a comp and put a dollar value to it. Show tickets? Put ‘em on the list. Special slot tournament invitations? Put ‘em on the list.
When you’re calculating the value of cash promotions, remember to include the cost of retrieving the cash. It may require an extra casino visit that you otherwise would not make.
Add everything up. That is the value of the entire comp package (which includes comp offers, comp dollars, and cash back).
Do this at every property where you would consider playing. Now it’s easy to compare the net value of various rewards programs. And if you break down the figures, you can compare the value of specific comp offers versus cash-back promotions. You’ll find in many cases the value of cash promotions will fall short of the other comp values. But we’re not done.
A Dollar is a Dollar
A nice comp package with liberal cash back isn’t so nice if a casino’s games are tighter than the air locks on the International Space Station. Or to put it another way, a dollar you win and a dollar from a cash-back promotion have equal value and are equally spendable.
So we’re going to set up a mini-ledger; you can do it easily on a piece of paper. On the left hand side is the total value of comps (including cash back) that you expect to receive from Casino Zed during X hours, let’s say 10 hours of play over two days. On the right hand side is the total action you would expect to give Casino Zed during that time, and your expected average expense. For this example, we’ll make the base bet $2 and the slot game payback is 92 percent. Most players spin about 600 times per hour. The calculation would be:
$2 x 600 spins per hour x 10 hours x 8% house edge = $960
Your expected gross cost is $960. Now subtract the value of comps (including cash back) from this total. Let’s say it’s $350. Your actual cost of playing is only $610. And of course, you might smack a big jackpot and finish solidly in the black.
Either way, now you have a method of comparing properties or games. Specifically, you might do the calculation and see that 9/6 Jacks or Better with a total comp package at Casino Zed is a better deal than 10/7 Double Bonus Poker with a total comp package at Yut Springs Casino, even though the bonus poker is technically a higher-payback game. Ditto for Double Diamond versus Star Wars or whatever games you like to play.
The Quick Fix
I encourage you to do the calculations and know the value of each cash promotion compared to the value of other comps. But now I’m going to give you some shortcut answers.
As I mentioned before, on a dollar-for-dollar basis, non-cash comps (rooms, meals, tournaments, comp dollars, and such) usually are worth many times more than cash-back promotions. Generally, this is because it costs a casino less to give you stuff that they already have in stock rather than pay you the market value of these items in cash.
But if you don’t need the room, hate the show, and are bored with the buffet, then aim for the cash.
Whatever you choose, remember that the value of a typical comp recovers only a portion of your long-term spending at a casino. The best “cash back” is beating the game, or at least lowering the house edge so your money lasts longer and you have more shots at smacking a big win. For example, if you lower the casino’s edge from 10 percent down to seven percent via game selection, that is extra money in your pocket that will rival or dwarf the value of any comps or cash-back promotions.
Also remember that a players club should understand you as a customer (or at least understand your demographic), and it should offer you a mix of rewards that fit your particular tastes and priorities. Ideally, you should be able to select comps and cash back in a balance that suits you.
If the one-page ledger you create for a casino doesn’t result in numbers that please you, then shop for a place that will give you a better deal.
Comp treasures are out there, waiting to be plundered. And you deserve your fair share.
Basil Nestor is author of The Smarter Bet Guide to Slots and Video Poker, Playboy Guide to Playing Poker at Home, and other comprehensive gambling guides. Got a question? Visit SmarterBet.com and drop him a line.
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