Casino Ethics: Comps

Are casinos being ethical with their comp systems?

Argument for yes:
It's a competitive advantage
It's necessary to compete with the casino next door
Players now expect the comps

Arguments for no:
It entices the player to play longer to get that next level or free buffet or just to be rated
Players must play a minimum number of hours per day for some comps
It entices the player to gamble at a higher rate than they normally would
Players must bet a minimum bet to be rated or qualify for any comps

More arguments?

If casino comps are unethical, then so are my airline miles, supermarket discount card, and credit card cash back program.

Quote: rdw4potus

If casino comps are unethical, then so are my airline miles, supermarket discount card, and credit card cash back program.

Have you ever flown to a more distant city than your original destination to rack up a few extra miles?

Have you ever made an extra flight in a month or bought extra groceries to get extra points on you card?

Have you ever gone on a shopping spree for unnecessary items just to get extra cash back on your credit card?

Have you ever increased a bet because the floorman was looking before updating the comp system, or played that extra 30 minutes to meet the 4 hour requirement for the free room?

Absolutely ethical to promote brand loyalty.

Quote: kp

Have you ever made an extra flight in a month?

Not me, but my neice has.

I don't know what airline, but there's a tier that gets free luggage and use of the VIP lounge and other perks.

Thru her job, she was just a couple hundred miles shy of that tier, so one Saturday she took a morning flight to Florida, had lunch at a favorite restaurant with some cousins, and flew home that evening.

Quote: kp

Have you ever flown to a more distant city than your original destination to rack up a few extra miles?

I've used farther connecting hubs to increase miles or to increase upgrade probabilities or to have a flight long enough to get a free meal. MSP-IAD-MSY is only about 60 minutes longer than MSP-ORD-MSY, and adds about 1000 award miles and a free meal on the MSP-IAD leg.

Quote: kp

Have you ever made an extra flight in a month or bought extra groceries to get extra points on you card?

I'll buy the groceries on double points days just like I'll gamble on point multiplier days. And I'm taking two flights before the end of the year partly to get to the next frequent flier status (UAL Premier Platinum). $260 to get to Louisville, $150 in vouchers to spend at HSI, 7x multiplier weekend. $150 to get to Saint Louis, $120 in vouchers to spend at Harrah's.

Quote: kp

Have you ever gone on a shopping spree for unnecessary items just to get extra cash back on your credit card?

No, but I'll look at where I have to go to get the bonus points and see if it's net-cheaper to buy there versus just going to Target or Walmart if possible. I'll also shift my spending to get the points. For example, if I know I'll need a belt and dress shirt before a wedding in February, but my card gives 5% cashback at department stores in Q4, I'll buy the items in Q4 instead of waiting until February.

Quote: kp

Have you ever increased a bet because the floorman was looking before updating the comp system, or played that extra 30 minutes to meet the 4 hour requirement for the free room?

My first bet is always my largest bet, but I don't manipulate my duration for room comps. I pick the casinos that I go to based on the offer of free rooms in advance, or I cash in loyalty points at area hotels and stay there instead of the casino.

Quote: kp

Have you ever flown to a more distant city than your original destination to rack up a few extra miles?

No

Quote:

Have you ever made an extra flight in a month or bought extra groceries to get extra points on you card?

No

Quote:

Have you ever gone on a shopping spree for unnecessary items just to get extra cash back on your credit card?

No

Quote:

Have you ever increased a bet because the floorman was looking before updating the comp system, or played that extra 30 minutes to meet the 4 hour requirement for the free room?

No

Have I ever charged something to a credit card when I had more than enough cash to pay for it, just for the points?
Yes.

Have I ever paid slightly more for a flight because I was on the more expensive airline's miles program?
Yes to that, as well. (I have thought about doing this with hotels, but have yet to been in a position where the increase in price justified it.)

I think the casino comp systems are all about building brand loyalty and to encourage repeat business. There is nothing unethical about wanting customers to return to your place of business over the competition. Using a reward system that gives a rebate to your regular customers is a way of giving back to the customers that help build your business. Sure, it may cause customers to spend a bit more in some cases, but that is the customer's choice because the either feel they are getting something in return and wanting to give you business because they like you better than the next guy. I'm frequently giving my business to the locally owned businesses in my community because I feel it supports my neighbors.

Sure, some people will try and scam the system and try to get extra points by getting their friends to give credit on their account. If I drag a friend to my favorite BBQ place so I can get my frequent diner card stamped twice, am I scamming the system for extra points, or maybe getting a new customer for the restaurant?

Casinos require a minimum bet and duration to be rated for comps. Is this to get you to bet more and longer? Or is it to keep low rollers from clogging up the system? Maybe a little of both. There is no need for someone to go into Bellagio and play $5 blackjack for an hour and expect any comps. If that $5 player instead sits down for four hours and plays $25, just for a free buffet, then that's just stupidity on their part.

Caesars Great Race program enticed me to make a trip to two casinos I would have not visited in that time frame to score more reward credits. It was a fun trip, and I'm glad I did it, but there's a scenario where I altered my behavior to get comps.

I also had to pick up a couple of $1 chips from two casinos that I didn't have in the St. Louis area, so to be honest, I was able to justify the trip.