Video poker – Slot clubs for video poker players

We know that a video poker player generally can hold the casino edge to less than one half of one percent, and in many cases we can even turn it into a player advantage with only a modicum of effort. But can we still get the comps and cash rebates even if we are playing with the advantage?

Note what I said above; the comp system is based not upon today’s actual losses (or winnings) but upon the casino’s perception of your expected losses. Since the vast majority of video poker players play at about two percent less than maximum payback, the casino generally sees video poker players as losers just like all other gamblers. (Otherwise, why would they have the machines in the first place?) Therefore, it is usually possible to collect comps and other benefits even if you are a winner.

Most casinos now reward slot and video players by means of a slot club. Membership is free, and when you join they issue you a card. Although the card appears very similar to a credit card, its use is quite different. Before you start to play, you insert the card into a reader on the machine. This identifies you so that the computer can track your play. In some casinos they only keep track of your action (total money wagered), but most also record your wins and losses.

The rewards may come in one or more forms, as follows:

• cash rebates: Usually figured as a fixed percentage of your action, typically ranging from 0.05% to 1%. Many casinos do not offer cash rebates.
• comps: Most often complimentary meals or accommodation. These may be in addition to or in lieu of cash rebates.
• intangibles: Actually another form of comp, but may include show tickets, use of the limo, etc.
• mailings: Joining the slot club puts you on their mailing list, and most casinos mail out monthly flyers. Often they include vouchers for discounts at restaurants, match plays, or even free money when you buy in. Often these vouchers are related to your level of action. They usually keep track of your action in the form of points. The most straightforward clubs award one point per dollar played. Others want to claim that their points are worth more. Of course they do this by requiring more action for each point earned, so the advertising can be very deceptive. The important thing for you is to figure out the actual total return as a percentage of your action.

Let’s look at a rather broad example. Suppose the casino gives one point per nine quarters played. Thus, each point requires $2.25 of action. When you have accumulated enough points you can get:

• $5.00 cash for each 1,000 points redeemed
• a buffet (regular $8.95 plus .65 tax) for each 1,250 points earned
• a show ticket (regular price $49.95 plus 3.62 tax) for each 5,000 points earned.

Note that you have to redeem points for the cash rebate, but in this club the other rewards are granted for points earned without having to cash your points in. To make the calculation easy, let’s assume you have earned 10,000 points. Doing this required 10,000 x $2.25 = $22,500.00 action. On a quarter video poker this would require $22,500.00/$1.25 = 18,000 plays, or about 30 hours of play for most players. For that 10,000 points, you can get 10,000/1,000 x $5.00 = $50.00 cash. Dividing by the $22,500 action indicates a 0.222% cash rebate.

That’s not bad by itself, but remember that you also get 10,000/1,250 x $9.60 = $76.80 worth of buffets, plus two show tickets worth $107.14, for a total return of $233.94 in values. Assuming that those comps have full value to you, that’s a total of 1.04% returned to you. Even if the best game available offers only a little over 99% payback, the potential total expected return is over 100%. The slot club has turned a negative situation into a positive one.

How can the casino return this much?
First of all, remember that most players are going to get less than 98% return from the game, so the casino still has its edge. But more importantly, note that the biggest part of the rewards are what are called soft comps. The buffet probably costs them quite a bit less than $8.95, and it keeps players coming back into the casino to eat those ‘free’ meals and play some more. The show tickets may be for nights that the show is never sold out, to their actual cost is negligible.

What does this return mean to you?
Suppose you’re playing full pay Jacks or Better at about 99.52% return. Adding the slot club benefits, you find that you have a positive expectation at over 100.5% total payback. Not a big profit situation, but what if the casino has a double points day? Doubling the slot club benefits boosts your total payback nearly 101.6%. Of course, that’s assuming you can use all those buffets and show tickets. Well, if you can’t use them all yourself, why not treat your friends or business associates to a meal or show?

The point is that the slot club rewards can make up a significant portion of your expectation. When choosing a casino, try to weigh all the factors. Advertising can alert you to promotions and changes in the slot clubs, but now you know how to evaluate them for yourself. Doing so is an important step in choosing a casino.