Slot Club Spotlight
by Jeffrey Compton
Credit Anyone?
How opening a credit account affects you—and your comps
If you have been an active slot club member at one or more casinos for more than a year, chances are that you will be approached to open a credit line. Casinos realize that the credit-line players are their very best in terms of both loyalty and profitability. Plus, it gives management hard information regarding a player’s potential.
Do casinos treat credit-line customers better (i.e., give them more comps)? You bet! Except for a player’s theoretical win, a credit line (including size, usage and payback record) can be a principal comp determinant, especially for upper-grade suites, in-demand show tickets and private events. Even a small credit line ($20,000 or less) tells the casino that this player has money and is willing to play.
A Qualified “Yes”
The next question—and it’s a big one—is should you get a credit line? We will discuss this further, but my general answer is a qualified “yes.” Having the ability to get several thousand dollars from the cage is a lot more convenient (and considerably safer) than carrying a wad of cash in your wallet or suitcase and (if managed correctly) is a lot cheaper than obtaining cash using ATMs, credit cards, or even traveler’s checks. And, as I said, it can also get you better comps for the same play. While I personally do not have a credit line at this time (I do not patronize any one casino or even a group of casinos enough to justify it), several successful professional players I know do use them to their advantage.
However, credit lines are not for everyone. In many households, the mere existence of a casino credit line would cause unnecessary concerns. Some people just do not feel comfortable when they are playing on “borrowed money,” no matter how small or manageable—and this could cause them to make poor gaming decisions.
In my opinion, if your credit score is below 740, you should not get a casino credit line. Whatever the reason, a score less than 740 means that you made a credit mistake somewhere, and, while possibly minor, this “minor” problem that becomes a major one once you get a casino credit line. (You will probably not be able to get a credit line if your score is lower than 650.)
I would also avoid establishing a casino credit line if you are planning to purchase a new home (using a mortgage) in the next year or so. Because you do not have an established account with other casinos or Global Cash Access (casinoland’s credit bureau), either the casino or GCA is going to run a copy of your consumer credit report, and this action will appear in the inquiry section of your report for the next two years. In today’s hypersensitive mortgage market, any banker scanning the report will notice that inquiry and proceed to ask a lot of questions—or, worse, make negative decisions because he thinks you are a “degenerate gambler.” (Note: Once you have established a casino credit line, any information regarding its size, usage, etc., will not appear on your consumer credit report unless you are being sued for non-payment.)
The Procedure
If you decide that a casino credit line is for you, then calculate the amount that you feel comfortable losing at a casino over a given trip or, in the case of a local casino, a given month. Not your average loss—the total amount you feel you can lose without creating a problem in your household. Then take that figure and multiply it by two. (If it is less than $5,000, skip this whole thing. Your play really does not justify going through the hassle.) This will give you a line that is small enough that you will access one-third to one-half on a regular basis (which is what the casino likes), but you will not have to sell or mortgage your home should you blow it out during a really unlucky trip. Just make it a policy that if you ever access the entire line, all gambling ceases until you pay the whole thing off.
While more and more casinos are putting in various methods of “instant” credit, I recommend you set it up the old-fashioned way the first time. It gives you more of a chance to think about it. Stop by the credit desk, ask for an application, making it clear that this is for “your next trip.” Fill it out either on-site or at home, and see what the response is.
Should you close a casino credit account that you are not using? For the same reasons that Suzy Orman tells folks about unused credit cards, I would not close a casino credit line; just let it go dormant unless it is causing you unneeded hassle or anguish. The casino will take it as a negative sign that you no longer want to play there, and this could affect future mailings that may interest you. Just forget you have the account and move on.
Q & A No, it isn’t okay. Giving a copy of your card and PIN to others is in violation of the club’s rules. It also increases the chance of fraud on your account (your kids could give the info to others), and, when the casino finds out that you have given away your card and PIN, they will not lift a finger to help you if there is a shortage on your account. This sort of scheme does not work unless the casino’s help are not checking IDs—and based upon recent letters I have received regarding fraudulent card usage, I think casinos should be more vigilant about ID concern, not less. Contact the players club manager or the marketing manager and discuss the problem with them. You are in this situation because you are a good, undemanding player. They should be able to offer you possible alternatives (like gift certificates) that are both legal and safe. |