If in fact what was stated in the VPFree2 web-site and by GWAE above is accurate, wonder why the casino's don't offer it as an option. Would certainly save them money not having to go through the process of collecting, filing and reporting the tax information, plus it would guarantee the winnings are ran back thru their machines. Certainly some players would like the thrill of the cash in hand, but others might be fine with the free play. Seems to simple to me so I must be missing something.
My guess is it would effect their marketing budget. I dont know for sure but they budget x amount and wouldn't want it used up by a payout.
Another thought is could it be considered tax evasion?
It would be nice if every casino did that, though. I'll take freeplay over a W2G any day of the week. Hell, I may even be willing to give up a % just to get FP and not a W2G. Well, I definitely would, I just don't know how low I would go.
I don't think it'd effect their marketing department, because this wouldn't be under the marketing team's "jurisdiction". Or if somehow it was, then the marketing budget could get increased by however much whenever a jackpot is hit and the player takes it in freeplay.
Assuming it gets around the "tax evasion" part, I'd think it'd be smart for a casino to offer something like a 5% bonus if you take it in free-play. This way it guarantees the money gets cycled through again (and on slots, that's a net win for the casino), and on VP that's a very small loss for the casino ($10,000 cash goes to $10,500 FP, which turns into $10,290 on a 98% machine and $10,185 on 97%).
Something else these casinos should do is instead of getting a W2G -- let's say you hit a $1 RF for $4k. Instead of winning $4k, it should put you into a bonus round, exactly like in Shockwave VP, and every play in the bonus round pays $1k for 4 rounds.
Or they should program them to "malfunction" whenever a jackpot is hit, and the casino just be like, "Oh even though the machine malfunctioned we'll still pay you that amount, or we'll give you free-play in that amount, just to keep the customer happy. Oh, this happens for every jackpot? Eh, oh well."