We’ve talked here in the past about how some casino markets share slot machine payback reporting data, and can help players get a sense of what to expect when visiting a casino or group of casinos in a given location. But how do other factors, like giveaways, come into the equation?
Can casinos add the cost of their giveaways to their payout percentage?
Kathy G.
When it comes to giveaways, it’s considered a marketing expense. More specifically, it falls into that bucket of casino offers that casinos use to woo players back through their doors. As we’ve shared, casinos will generally invest anywhere between 20% and 40% of what they expect players to lose on a given visit as their investment to bring them back in.
While free play, hotel rooms and resort credits will dominate the list when it comes to destination casinos, those giveaways like gifts or cruise certificates can be a popular offering for regional or locals casinos that rely on regular visitation.
Many of the California casinos nearby the Flip The Switch/BCSlots offices feature gift giveaway scenarios for players to come and frequent the property. At some of the casinos they’re structured in monthly themes that will be familiar to many casino visitors (bedding sets, kitchen pots and pans, outdoor barbeque nice to haves, etc.). Other times it might be a more straightforward gift card offering or the cruise ship certificates.
More often we’re starting to see the option for players to play and earn a gift if they weren’t sent an outright invite. This can open the doors to players who may not have the same level of offers established or at the moment, but still play enough to qualify for the item.
But ultimately, these are enticements to get people to play and are separate from the actual machine payback. Hence, they aren’t added into to payback. When you see payback reporting around slots, it’s purely around the money in and out.
Some states will report on how much free play a casino gives out, in part because that state’s laws may require that to be factored into taxes. As regular readers know, regulations can differ from state to state, so it’s not a one-size-fits-all answer.
But ultimately, even when free play is factored into the reporting, it’s still at the end of the day total in vs. total out to confirm the payback the machines offered in that window of time.
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