- Formula To Write Off Slot Machine Gambling Debt Collectors
- Formula To Write Off Slot Machine Gambling Debt Losses
This guide, written by casino math professor Robert Hannum, contains a brief, non-technical discussion of the basic mathematics governing casino games and shows how casinos make money from these games.The article addresses a variety of topics, including house advantage, confusion about win rates, game volatility, player value and comp policies, casino pricing mistakes, and regulatory issues. The most famous incident happened in 2015 when 90-year-old grandmother Pauline McKee, from Illinois, won $41 million on a Miss Kitty slot machine at the Isle Casino Hotel Waterloo.
The recession brought down Nevada’s gambling revenues significantly, but the casinos are not ready to give up just yet. Their next step – is to encourage high rollers, who were more or less dormant during the financial crisis, to play more and more often. And how do they get them to do it? By showering expensive rewards and gifts on them, of course.
At a time when the casinos are trying to fill that gaping hole created by recession, customer loyalty means a lot. At present, the competition between casinos to attract and retain whales is beyond tough, it is ferocious.
What the Whales are Lured With
Formula To Write Off Slot Machine Gambling Debt Collectors
Whale is the term commonly used when referring to the highest high rollers at the casinos. Considering the amounts that these high rollers spend, casinos do not want to lose them or the opportunity to get back what they owe them. Among the most lavish rewards that are offered to high rollers, some include front row seats to the biggest shows and famous-chef room service, besides the usual drinks and food served at the table.
Millions Offered in Debt
Among the many things that casinos do to retain their high rollers and keep them coming back for more is to offer them credit. The amount of credit offered by Las Vegas casinos was high during the recession, and casinos kept giving money to their high rollers, as they feared losing them otherwise. The amount of high roller debt in question here is not just in thousands, but in millions of dollars. When times are bad, people may be tempted to skip the debt and move on, and the worst part is that casinos do not go after valuable possessions of the guests to get their money back. They simply write them off.
Sands Casino in Vegas had set aside allowance for doubtful debts, those that could go bad, at $492 million in 2012, while Caesar’s Entertainment Corp’s allowance for bad debts was more than $200 million. MGM Resorts and Wynn also made allowances of around a hundred million to cover the bad debts.
Improving Economy Encouraging High Rollers to Clear Off Debts
A recent report suggested that a number of high rollers who took the hit during the recession are now slowly getting their game back. With the economy improving, a number of high rollers are actually paying up their gambling debts. During the recession, casinos that feared losing their biggest customers offered debt to their loyal high rollers, to keep the business going. According to Rod Goldstein, the president for Las Vegas Sands global gaming operations, a Las Vegas casino that does not offer credit is at a major competitive disadvantage, which is why almost all casinos in Vegas have high rollers who owe them.
Formula To Write Off Slot Machine Gambling Debt Losses
The good news is that many High Rollers have been paying off their debts to the casinos over the past few months, indicating that the economy is actually improving.
High-End Casinos Popular for Amenities, Not Just Gambling
According to the CEO of the AGA, the American Gaming Association, Frank J. Fahrenkopf, most people who visit high-end luxury casinos go there not to spend big bucks at the game tables, but to make the most of amenities offered by the casinos. People are more attracted to luxury spas, Michelin-star restaurants and concerts by top artists like Celine Dion.
While Gambling is certainly on the list of things to do, it is not the primary objective, according to Fahrenkopf. The concerts, shows and other events that the casinos host every day are more alluring when compared to losing money at slots or gambling tables, which makes gambling the secondary reason for choosing Vegas as a holiday destination.