PLAYERS TALK

WHY AM I “PAYING” FOR GIFTS NOW?

How The Economy & Forceful Decisions Affect Your Promotions

Dear Editor,

I enjoy reading your magazine each month. Keep up the good work. I have a question about [Arizona’s casinos]. Why do we have to make points in order to get a gift now?

We’ve spent a lot of money [at the casinos]. We “bought” those gifts by playing the machines every time we went. Aren’t [the casinos] making enough money? [Why do they] have to make us earn points in order to get a gift? I was [at a casino] and I had to spend about $60.00 just to earn 200 points for a gift, [now it’s] 50 points to earn a free meal. It’s not fair! No wonder people aren't going on points days [anymore]. Please look into this problem OK?

Margaret Aguilar—Tucson, AZ

Hi Margaret! Thanks for being a loyal reader, and for your great observation. You are not alone. We are receiving more and more mail, email, and social messages about how promotions at Arizona’s casinos are changing. What used to be a “free” gift, now has to be earned through points first. The same is now true for a “comped” meal or drink vouchers. Earn it first by making points through play!

Arizona’s casinos raked it in during the pandemic! That is, the casinos that were prepared to capitalize on the moment made money. Those that weren't, didn’t. And those that didn’t are having “budget problems.” Yet overall, Arizona’s casinos made about 30% more revenue (July 2021 through June 2022) than prior to the pandemic. That is a massive increase!

So, what’s going on? Well, for starters, the economy is off. Everything costs more, including food, gas, packaging, electronics, employees, etc. Arizona's casinos are affected by those increased costs and are adjusting accordingly. In addition, most financial advisors and banks the casinos interact with are providing them with cautious or negative forecasts for the next three to six months in terms of consumer expenditures of entertainment dollars and discretionary spending (as in, how much will the average consumer, like you and members of our team, decide to put aside for a gaming budget?). The casinos know everything costs more and they’re being told (right or wrong) they should expect less customers with less money to spend in the near future. Casinos can easily raise their food prices and hotel room rates to generate more revenue to compensate. However, one of the few ways to “raise prices” on the slot floor is to either tighten the slots and/or change the rules for the promotions.

Is that fair to do to loyal customers? In our opinion, no. Can you do something about it? Yes! First, communicate your concerns to the casino you've been loyal to and listen to their response. Second, discuss the situation with your social circle (you reached out to us!). Finally, lower the amount you spend at a particular casino or simply take your business elsewhere if you feel your loyalty is no longer valued.

Ultimately, any casino is a business. Have you noticed how all the national pizza chains no longer put as many toppings on their food as they did before? That’s called “skimpflation.” Keep prices the same but provide less to the customer.

Inflation is when it costs more to purchase the same product. That’s the strategy the casino you mention seems to be applying to their customers like you and many others. Now, you are “paying” by having to earn points in order to receive a “free” gift. Pre-pandemic you were not “paying” for your “free” gifts.

If you’re familiar with Aesop’s fables, there’s a good one about patience called The Crow And The Pitcher. We’ve printed it below. Based on decades of experience working with casinos, working for slot manufacturers, and being casino customers, there are people in management in the casino industry who could benefit by reading this fable, and others. $

Thank you to our readers for your questions and comments, we appreciate you! Write us at Editor@AZGamingGuide.com or by mail at Editor, AZ Gaming Guide, PO BOX 20636, Mesa, AZ, 85277.

For weeks and weeks there had been no rain. The streams and pools had dried to dust, and all of the animals were thirsty. Two crows flying together in search of water, spotted a pitcher that had been left on a garden wall. They flew to it and saw that it was half full of water. But neither one could reach far enough inside the pitcher's narrow neck to get a drink. "There must be a way to get that water," said the first crow. "If we think it through, we'll find an answer."

The second crow tried to push the pitcher over, straining with all of his might. But it was too heavy to budge. "It's hopeless!" he croaked, and flew away to look for water elsewhere.

But the first crow stayed by the pitcher and thought, and after a time he had an idea. Picking up some pebbles in his beak, he dropped them one by one into the pitcher until at last the water rose to the brim. Then the clever bird happily quenched his thirst.