Gambling for stuff, instead of money

There is an experimental resort on Hainan island (China's Honolulu) where gamblers pay real money for the possibility of winning "Mangrove" points that can be used to buy products available in the casino such as an iPad 3G or a Rimowa suitcase. Once luxury brands open outlets within the resort, customers will be able to spend their points in those stores. Art work from is also available for purchase.



Rimowa suitcases are the kind of ridiculously expensive luxury item that most people wouldn't know what to do with if they were given to them as a gift.


Clearly, gambling for expensive toys is different than gambling for money. It will have less appeal to most people. While if you win $1000 you can spend it wherever you want, but if you win a suitcase, do you either have to win the retail value or the wholesale value. The potential is good for the resort to sneak in the lowest payback percentages in the industry, by simply requiring points equal to "retail value".

However, it has the opportunity to place gambling into resort areas that have forbidden it in the past.

Take Hawaii. You would think with it's large Asian population, and considerable number of tourists from Asia, that it would be one of the biggest gambling destinations in America. Instead, Hawaii and Utah are the only two states that have no legal gambling at all. No lottery, and not even charity gambling.

Perhaps Hawaii will be more open to gambling for stuff instead of money.

Will this idea catch on? Could you see airports gambling for "duty free goods"?

Never heard of the brand. What makes them special?

Quote: DeMango

Never heard of the brand. What makes them special?

Advertizing, public relations agents, and the whims of the "beautiful people". Also of course there is the very fluid meaning of "wholesale" and "retail" price.

Gambling for Goods... is the way all these "casino style slot parlors" started out They had to display the goods such as microwave ovens etc. that would be given out as prizes for stated numbers of points because the enabling legislation used the term "merchandise". Then some clever lawyer realized that a prepaid Walmart card loaded for five hundred dollars is legally "merchandise" and not five hundred dollars, therefore all the slot parlors dropped the silly tie-ins for high-priced junk from local merchants and awarded as prizes the pre-paid cards that could be used in a variety of local stores as desired.

Similar kind of get-around as Pachinko, but I don't see something like this spreading all too much.

Quote: ahiromu

Similar kind of get-around as Pachinko, but I don't see something like this spreading all too much.

Let me emphasize that I don't see it replacing gambling for money where that is legal. I am talking about new markets (Hawaii and Texas for instance)

Quote: pacomartin

Let me emphasize that I don't see it replacing gambling for money where that is legal. I am talking about new markets (Hawaii and Texas for instance)

Yes, I certainly agree, its value would be to help establish new markets by penetrating barriers so that its not "gambling" its "upscale marketing" and its not "gambling" its "local merchants" and its not "money" its "merchandise"... . In other words terminology selected to avoid ruffling the "Bible Thumpers" and "Do Gooders" who don't want to hear the word "gambling". Texas already has lots of gambling with zoning problems for the non-slot machine clubs but its all conducted without publicity about gambling, only about zoning.

It would help tie-ins between casinos and existing merchants such as Biloxi's program involving "local" but not adjacent shopping centers, but the primary advantage would be in piercing barriers in new markets wherein there is an entrenched anti-gambling culture in either social or legislative circles. Sort of Godfatherish "not near schools or churches" strategy for market-entry purposes.

Even the recent "Dottyization" of Von's Supermarkets in Las Vegas will be tied to merchandise, wherein open VP slot machine areas become enclosed, upgraded and game-varied with Players Club Cards used for discounted gambling as well as discounted groceries. Stations Casinos spearheaded the legal attack on Dottys because it was the casinos who had the lawyers and lobbyists, but Von's has deep pockets for lawyers and lobbyists too and all supermarkets in Las Vegas will soon have "Ain't-Named-Dottys" owned by "No-Longer-Named-Herbst" that offer upgraded gambling linked to rewards that are both cash and groceries.