Sometimes, you’ll find casinos that have a lot of positive reviews, helping them attract new customers as well as retain regular customers. It’s already an established fact that incentives play a part in this phenomenon, but how does it really work?
Here we look at the impact of restaurants on how gamblers spend their money, as well as increase their satisfaction making them provide good reviews online.
Tiers and Levels of Player Rewards Programs
There are tiers of these incentives depending on the customer’s gambling behavior. An example of this is when incentives are categorized from Gold to Diamond or Seven Stars. Each tier may provide a certain benefit and as the level gets higher, these benefits become better.
How Do Casino Operators Determine Customer’s Tier?
Typically, casino operators determine a customer’s tier depending on their monetary value, that is, how much the casino can win from that customer (or how much the customer can lose to the casino).
The Effect of Player Rewards Program Levels
After determining what the customer’s monetary worth is, they may be categorized using the levels such as Gold, Silver, or whatever the casino may call it. The highest level requiring the best marketing effort, while the lowest requiring a simple marketing tool.
Somewhere along this line are casino restaurants, which is a pretty effective marketing tool and may even be in the highest levels of a player rewards programs.
Dining options or restaurants are typically offered to all customers, but the effort given to it depends on their level. For example, a new customer may be offered a burger for $10, while a regular customer that is willing to lose $1000 every day in the casino may be offered a 24-hour café or a buffet for a certain price.
So, if you’ve been thinking of casino restaurants to be the profit-makers, then you’re wrong. They are merely used as a marketing tool for one reason, and that reason is already proven to be correct.
How Does Dining Affect Gambling Behavior?
Restaurants are found to stimulate the gaming of a customer, as well as increase the frequency of that customer visiting the casino. This is especially true when it comes to local and regional casinos, as they don’t usually make revenue from nongaming sources such as restaurants, other than using it as a marketing tool.
For example, a casino made $1.4 billion in a year as their net revenue, most of it came from gaming revenues amounting to $1.5 billion that year. So, what happened to the $100 million lost?
The cause of this is usually an allowance taken from free meals and rooms. They may have spent $300 million due to free accommodation and dining and made $200 million from food and beverage, and rooms, hence the $100 million loss.
However, while they may have lost $100 million from giving out free meals and providing free accommodation, this helped them increase their gaming revenues. This is because it is found that gamblers who are given these freebies are more likely to gamble.
As long as casinos choose gamblers that rarely win, then they’ll make a profit instead of losses.
Restaurants affect casinos more than you think, and it’s not all about keeping the stomachs of the customers full. If you ever enter the casino market, make sure to take this into consideration and don’t be afraid to take losses.