Casino Games
How Do Casinos Attract High Rollers?

How Do Casinos Attract High Rollers?

There is nothing that a casino won’t do if it means winning a high-stakes gambler as a long-term customer. The impact on revenue and profits from a single big-time gambler can be astronomical.

The most common perks that high rollers want is a rebate on their losses. Usually, big-time gamblers can get at least 10% of their losses returned, with some managing to secure 30% of their losses. This means if a gambler loses $100,000, they will receive back $10,000 to $30,000. Online casinos like CasinoChan also have generous reward programs to keep players happy.

Casinos will often institute rules that entice gambles to keep betting, such as they only qualify for rebates if they lose over $100,000 or $500,000

Casinos will offer to provide rich gamblers with access to their private jets, free hotel rooms in the most luxurious suites, and 5-star dinners and bottles of champagne, all courtesy of the casino.

Why Do Casinos Spend So Much To Attract High Rollers?

Casinos are hoping that high rollers will lose more money than the casinos spend on keeping them happy. If a casino spends $500,000 on ensuring the guest is having the time of their life, and they go on and lose $2 million, this is a big win by the casino and a very profitable investment.

Casinos are very smart, and they calculate everything to ensure they are not getting a return on their investment. If a high roller starts winning, they will quickly cut down the perks such as making gamblers pay for hotel rooms, not giving free bets, and even cutting off access to the company’s private jet.

This is a delicate game because if casinos anger a high roller, they may never return to the property. With so many casinos around the world and so few high rollers, the gamblers have the negotiation power and can usually get themselves some juicy deals.

In 2007 when Terrance Watanabe lost over $100 million while playing at Caesars in Las Vegas, it represented over 5% of the parent company, Harrah’s revenue. Now it makes sense why casinos are so eager to get rich gamblers through the door and betting big.

Watanabe was such a high roller that Caesars created an additional VIP level just for him dubbed the Chairman. Caesars was apparently paying Watanabe $20,000 per month in travel expenses, returning 15% to 18% of his losses back to him, buying lavish gifts such as $50,000 Rolexes, and even gave him a gift certificate for $600,000 which could be used at Caesars stores.

Despite the 7 star treatment Watanabe received, he accused the casino of negligence and sued them in an attempt to recover some of his astronomical losses. He claimed that the casino had kept supplying him vodka and pain pills to keep him gambling sometimes for days on end. He claimed he was in a stupor and was unable to make sound decisions, resulting in his gambling debts spiraling out of control.

Watanabe has now quit gambling, but it is estimated that he lost a total of $30 million throughout his whirlwind of a gambling career.

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