Despite claims from casino operators that people go to casinos to have fun and for entertainment, this study proves winning money is the most important reason why people say they visit a casino. Three in four casino patrons say they go primarily to win “a really large amount of money,” according to a Roper survey referenced in the article below, yet it is a mathematical certainty that players will ultimately lose to the casino.
Predatory Business Practices
Slot Users Are Lured in by ‘Free Play’
Free play offers are luring in millions of citizens into Pennsylvania casinos with the promise of free games. It’s a predatory practice used to get people hooked on the machines and to keep playing, and ultimately losing, their own money.
Political leader challenges government-sanctioned gambling machines
MLA Ken Allred took aim at video lottery terminals (VLTs) , questioning whether the crown corporation that runs them is being upfront with the public about how the machines work, how the finances are reported and what the true cost is to the province.
Lottery’s new ad team launches campaign
The Illinois Lottery announced a new marketing campaign ad that focuses around “optimism.” The $3.5 million campaign sloganing ‘Anything is possible’ will run across major networks, billboards, and newspapers alike throughout the state, luring citizens to blow their savings on lottery games literally mathematically rigged for them to lose.
Consumer Bureau ‘Zoning In’ on Tribal Payday Lending Firms
The U.S Consumer Financial Protection Bureau is cracking down on players hiding behind Native American sovereign immunity. These players are abusing the power to run casinos in states where gambling is otherwise illegal, and also distributing payday loans in illegal areas.
Kansas state government exempts casinos from statewide ban on indoor smoking
Despite the statewide ban on indoor smoking, state government in Kansas exempted casinos. Research indicates that a smoking ban would drive thousands of patrons away from Kansas casinos.
Atlantic City casinos spend 40% of winnings on comps
Casinos across Atlantic City have been even more generous in sending out free slot-play rewards in attempts to lure customers. Statistics released last month show that Atlantic City’s casinos spent an average of about 40 cents of every dollar they won in gambling on promotional allowances and expenses in September.
Atlantic City casinos spend 40% of winnings on comps to compete with other venues
The Casino Practice of Lending Money to Citizens Who Then Gamble It All Away
The casino business model is based on patrons who “chase” their losses which means people who continue gambling to try to get back the money they have already lost to the casino. Borrowing money to gamble is one of the most glaring warning signs of problem gambling. One way casinos exploit the mind set of those who chase their losses is by loaning money to gamblers who do not have the cash on hand to continue gambling at the casino. Below is an example of the predatory casinos loan process taken from the Harrah’s Metropolis (IL) Casino website on May 30, 2012.
‘Gamble responsibly’ is an ad, not a deterrent
State governments presumably believe that the ‘gamble responsibly’ message is evidence of their concern about gambling problems, and will assist people who gamble to do so in a ‘responsible’ manner. This message seems to be no more than a façade however, providing a false sense of caring, as persuasively explained in this article by Charles Livingstone.
Emerging Issues in the Use of “Free Play”
Non-negotiable slot credits, or what is commonly called “free play” has become the primary form of customer incentives in casinos. Today’s casinos use mail, phone and email solicitations to offer free slot machine play to lure citizens who have rarely been to a casino before, a tactic adopted from the tobacco companies who used to hand out free cigarettes in low-income neighborhoods. This article attempts to identify the emerging issues of free play and how they are impacting the frequency of play and casino profitability.