In order to stay competitive, casinos have adopted complex algorithms that calculate the “predicted lifetime value” of each gambler. The casino then assigns value rankings to each gambler based on the amount that they have wagered. The biggest losers are referred to as “whales,” but eventually become the most prized repeat customers. As a result, casinos market aggressively to these players. Here are some strategies to make your casino experience more enjoyable:
In order to attract more high rollers, casinos use internal data to determine which types of customers are the most profitable. In Las Vegas, for example, 70 percent of the casino patrons use loyalty cards to keep track of their preferences. They record information such as when they play, how much they bet, and when they win. For better customer service, casinos also use data gathered from these systems to target their customers with special promotions. However, casinos may not disclose this information to consumers.
The benefits of a casino are often overshadowed by the negative effects of its use. Many casinos are prone to attracting problem gamblers. However, these gamblers contribute an enormous portion of the casino’s revenues. Some research shows that casino gambling is disproportionately harmful to society, with only five percent of casino patrons suffering from addiction. Moreover, economic studies show that casinos have a negative impact on local economies. Although casinos attract mostly local players, they divert spending from other forms of local entertainment. The costs of treating problem gamblers and the lost productivity due to gambling addiction offset the positive impact of casinos.