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. Comp rates are extremely low and don’t offer much value from an overall perspective. Here’s an example: You bet $1,000 on a slot machine. The casino offers a 0.1% comp rate. 1,000 x 0.001 = $1 in rewards; The game has a 7% house edge. 1,000 x 0.07 = $70 in theoretical losses; 70 / 1 = Theoretical losses are 70x greater than comps. Smarter Gambling. Understanding Comps The Math Behind Casino Offers. You can calculate the expected loss for a given day. That’s if the math works perfectly involving the house edge, but we know short-term variance could mean you do. The thing is, with Chuck (VegasTripping's brilliant mastermind), comedy and entertainment value is just as important to the story. So this comp calculator is mostly good for entertainment value. Some flaws: - Casinos don't calculate theoretical loss at the exact house edge. For instance, for baccarat its widely known that 1% is standard. Based on contrasting the two cases, you can conclude that the comps, when sufficiently unrelated to the casino resort, should be considered income. Conversely, the free rooms, board and beverages.
A player who gambles much—either by placing large wagers or by placing smaller ones for an extended period—is regarded as a good customer by the casino, and to retain these players, casinos offer a wide array of fringe benefits, commonly called “comps” (short for “complementary”). These casino comps can range from a free drink to an all-expenses-paid return trip to the casino.
Unfortunately, most casinos have become obsessed with their bottom line, and it’s more difficult for players to obtain the fringe benefits that used to be lavished upon them. The stories of pit bosses chasing after customers who’ve left the table to make sure they’re treated to dinner, or even offering a comp without having to be asked, are quickly-fading memories from a better, vanished time.
That’s not to say that complimentary have been done away with entirely—at least not yet—but if you want to be treated like a valued customer, you’ll have to be a bit more aggressive.
Casino Giveaway
Many players regard comps as “freebies” or “giveaways,” but it would be more realistic (and accurate) to take the perspective that comps are earned. The casino “rates” its players by estimating their gambling losses and rebating them a percentage of those losses in goods and services.
For example, a player who wagers $25 per hand at a table where hands are dealt at the rate of 50 per hour generates about $1250 per hour in action (the amount wagered, regardless of wins or losses), or $2500 for a two-hour session. Since the house expects to hold about 20% of this, that player is expected to provide $500 in profit each hour. Most casinos currently provide comps equal to about 25% of the player’s expected losses (regardless of how much they win or lose)—so, at the end of this session, this player will probably be treated dinner and drinks at one of the property’s better restaurants.
The reason casinos and online casinos offer comps and a casino giveaway is simple: these giveaways keep players coming back to their establishment. It’s their hope (and it often works out) that the player above will remember the “free” dinner instead of the $500 he lost to earn it and will be receptive when the casino offers him a free weekend a few months later.
It’s generally worthwhile to join a slot club, even if you don’t intend to gamble at all. Casinos will send some special offers and discounts to its entire mailing list, and club members get preferential treatment in every regard: better seats at events and a special rate on hotel rooms. It’s not uncommon for a casino to hold back a block of rooms for its club members, even during peak periods, allowing you to get a reservation when the property is “sold out” to the general public.
Comps Casino
The most common complimentary casinos offer free drinks. This is one of the few complimentary that is aggressively offered by the casino—which is probably because alcohol has a bonus for the house: it dulls players’ mental acuity. Free drinks are made available at every table, even to low-rollers, though the service tends to be more attentive at higher limit tables. (A point of courtesy: even though the drinks are free, players are expected to tip the wait staff.)
Since consumption is down, free cigarettes and cigars are seldom offered. If asked, the waitress will bring them, though it may be a long wait. Also, since tobacco prices are high, they are not often given freely to low rollers. At most casinos, you must be playing at a table where the minimum wager is $25 to qualify for tobacco products.
Giveaways of “trinkets and trash” are also becoming rarer, but are not entirely uncommon. Players may, on occasion, be offered souvenirs such as decks of cards and plastic knickknacks. The more welcomed items (casino cards and dice) are typically sold in the casino gift shop rather than given away, and it can only be hoped that casinos have ceased giving away the less welcomed ones.
How do casino comps work
Many casinos have also instituted cash-back rewards, in which players who have earned sufficient “points,” usually at slot machines, can claim a certain amount of money (or souvenir merchandise). It is curious that these programs are catching on, as they make it blatantly obvious how poor the compensation is. By one such program, a player must cycle $2500 through slot machines to earn a $20 “bonus” or a baseball cap.
In addition to free drinks, players may also receive free meals at casino restaurants. A player who sits at a low-limit table for an extended period will be treated to a free buffet. Starting at the $25-minimum tables, players may instead expect a meal at the casino’s coffee shop, or even one of its gourmet restaurants, depending on how much they wager and how long they remain
Regarding meal comps, it’s important to pay attention to precisely what it offers. In most cases, it will cover the cost of the meal—though it may be only for one person. The comp may also be limited to courses (an entree and dessert only) or a specific dollar amount. It’s also not uncommon for the comp to exclude cocktails (or set a specific limit). Also, as a point of etiquette, a comp never includes a tip for the waiter, so you should tip out of your.
The next rung on the comp ladder is free entertainment. In addition to the lounge acts and performances that are free for anyone to attend, players may receive tickets to shows at the casinos’ venues. The cheaper the admission, the less a player must wager to earn this comp: green-chip ($25 minimum) player can probably gain admission to exhibits and events that have relatively low ticket prices, but most show comps are reserved for the black-chip ($100 minimum) players.
Although a “room comp” is seldom granted at the table, a valuable player may find that one or more nights (even their entire stay) along with certain other hotel charges have been discounted from the bill. Alternately, a player may receive a phone call from a casino host inviting him for a free stay (food, room, and beverage—or “FRB”). These comps are generally reserved for players who generate at least $5,000 in action for each day of their stay.
Though these are the limits of what a casino will offer the average player, there is no limit to what a casino will do to entice the high rollers to patronise their establishment. Extremely high rollers (called “whales”) are treated like royalty—flown in on private jets; boarded in ostentatious penthouse suites with private staffs that include butlers, valets, and private chefs; and catered to in ways that the casinos are reluctant to mention. It’s reasonable to assume that anything will be done to appease the players who wager astronomical sums of money.
Best Casino Comps
In addition to comps, casinos will generally make special offers to bring its customers back. Even a low-roller will get invitations in the mail for tournaments, parties, and other special events the casino holds to fill its hotel rooms in the off-season. The rates for these events are generally lower than the casino rate, so it’s an excellent opportunity for a getaway, even if you don’t participate in the tournament or event itself.
Other offers exist, such as free weekday nights or a gift of cheques or cash to wager with. It is not uncommon for affiliated casinos to share their mailing lists, so a player may get offers from casinos closer to their area (Harrah’s, for example, operates casinos in many local areas) or affiliated casinos (such as Bally’s and Paris in Vegas).
Most of these offers are made by s-mail, so they’re not particularly intrusive. However, some of the more savvy operations will also send offers via e-mail—and if you wager heavily or often, you may even receive a personal telephone call from a casino host.
How do casino comps work
For those of us who don’t play in the high-limit area of the casino, getting comps requires some degree of pursuit. If you bet heavily, a casino host will seek you out—but this seldom happens anymore. Since most casinos are operated by corporations who are fastidious about profit, the average player has to be a bit aggressive in getting comps that were once doled out as a matter of course.
At the very least, a player must join the casino’s slot club to earn comps. This entails completing an application form that requests personal information (address, phone numbers, and the like) and using a card that must be inserted into slot machines or presented at the tables so that the casino can keep track of each player’s habits. In most casinos, the same card can be used for both slots and table games, and a second card can be issued to the player’s spouse so that their play is credited to a single account.
If you don’t join the slot club at the booth, the pit boss can key you into the system at the table. He may ask for your driver’s license, or present an application you can fill out on the spot, then issue you a temporary card. You can stop by the slot club later to get a card with your name and member number on it.
A player who is concerned about privacy and refuses to provide their particulars and be monitored may be refused comps at some casinos—such is the price of privacy in the digital age. The sole purpose of these cards is to evaluate players for comps and special offers. If you’re sensitive about even this degree of intrusion, don’t join—but don’t expect anything more than free drinks.
Even if you sign up and present your card at the table, it’s necessary to request the comps to which you’re entitled. If you want a free meal or show tickets, speak to the pit boss when you’re ready to leave the table—or if you want your room charges comped, asked to see a casino host when you check out. Though it seems (and is) a bit declasse to demand these premiums, it is cheaper for the casinos not to provide them—and many won’t, unless the player demands it.
There are a few tactics to use when pursuing a comp, especially at the table. First, be discreet. Call the pit boss aside rather than talking to him over the table, or speak to the casino host at the end of the hotel counter. Your chances of getting the comp are better because the comp is not brought to the attention of the other patrons, who will expect the same premium. Second, always ask for more than you’re owed. If you ask for the buffet, the pit boss may refuse—but if you ask for dinner at the steakhouse, he may comp you the buffet. And finally, always ask for a comp—you may get it—but more importantly, it would be more profitable for casinos to do away with comps altogether, and if players no longer ask for them, they certainly will.
Don’t play for comps
One final bit of advice: never play for the sake of comps. Remember that the comps you get are worth a fraction of the amount you stand to lose in pursuit of them. It’s foolish to stay at a table an hour longer than you’d have liked to earn a buffet ticket or to play even ten minutes longer while waiting for your drink to arrive. In either case, you stand to lose more by playing than it would have cost you to buy the “freebie” outright.
Comps are among the most exciting parts of gambling. The idea of winning money and picking up a free steak dinner on the side is attractive.
Many gamblers are so enamored with comps that they play longer just to upgrade them. They may be ready to quit a blackjack session, but they keep playing for two more hours in pursuit of the best comps.
Being excited about rewards is perfectly fine. However, you should never overvalue them and play longer just for the comps.
Keep reading as I explain why casino rewards are overrated. But first, I’m going to discuss more on the basics of comps and what they entail.
How Do You Earn Casino Comps?
The process for earning casino comps differs based on whether you’re at a land-based or online casino.
Collecting rewards at an internet casino begins with signing up and making a deposit. Registering for an account makes you a member of the casino, while depositing ensures that you have funds to bet with.
Most online casinos automatically start offering rewards as soon as you make your first real-money wager. You continue racking up loyalty points as you keep playing games. You can then exchange your points for cash and any other available rewards at the site.
Land-based casinos differ in that they don’t start comping you immediately. They instead require you to sign up for their loyalty program.
You can either join in person, or you can visit their website and look for an online form. The latter is convenient because you can join the program online and be ready to earn rewards when you arrive at the casino.
The gambling establishment will issue you a slots club card, which can be used in any slot or video poker machine. It tracks your total bets and how many points you’ve earned.
You can also use your loyalty card when playing table games. However, a table game doesn’t have a special area where you can insert your card like slot machines.
Instead, you need to hand your card to the dealer and tell them that you wish to be rated. They’ll then tell the pit boss, who’ll watch your first few wagers and rate you accordingly.
Earning casino comps isn’t difficult in online or land-based gambling establishments. But the latter setting requires a few more steps to ensure that you’re getting rewarded.
Factors That Determine Your Gambling Rewards
Many gamblers are confused about exactly how their comps are determined. They may bet low stakes for a few hours and expect to receive great rewards, only to be shocked when they get $2 in cash back.
Casinos only offer the best comps to their top customers. They look at a gambler’s overall betting volume and use this as a big factor in how many rewards should be given.
Of course, the comping process is much more in-depth than this. Casinos look at multiple aspects to determine what freebies a player deserves.
Here are the key aspects they use:
- Bet size – Larger bets mean more comps.
- Hours spent playing – More hours at the table leads to more rewards.
- House edge – A higher house edge is better for rewards.
- VIP status – High rollers receive the best of the best.
Slots rewards are determined in a precise manner. Land-based and online casinos can track exactly how much you bet on slots to figure out the number of points you deserve.
Online casinos also get a precise idea on how many table-game rewards you should receive. Their software tracks each bet you make to come up with an exact figure on rewards.
Land-based table games, on the other hand, aren’t an exact science. The pit boss doesn’t have time to watch every single wager you make.
Therefore, the amount of comps you get for table games can vary for better or worse. Later I’ll cover a few tips you can use to try and increase the amount of rewards you get through land-based table games.
Comps Available at Land-Based Casinos
The rewards you receive at brick-and-mortar casinos are more exciting than those offered at gaming sites. After all, you can look forward to lavish perks that will make you feel like a high roller.
Land-based casino rewards start with free drinks. Many players appreciate getting free beer and cocktails while playing their favorite games.
Next up on the menu is free meals, which are slightly more prestigious than drinks. You may qualify for a free steak dinner for two if you offer the casino good betting volume.
A free hotel stay is even more exciting than the food. Earning one or more nights free of charge means that you may not have to worry about hotel accommodations during your gambling trip.
The biggest high rollers can be privy to even better perks, including top-shelf liquor, a free penthouse suite, private gambling room, and limousine transportation. Those who attain the coveted Room, Food & Beverage (RFB) status can look forward to these top-tier perks.
Of course, Room & Food (RF) isn’t a bad status to have either. You can at least look forward to your room and meals being comps. Top-shelf liquor is the only perk missing from this VIP level.
All other gamblers are referred to as “player” status. They can earn free drinks, meals, and hotel stays, but they won’t receive these benefits on a regular basis.
Comps Available at Online Casinos
Gaming sites can’t make you feel like a true high roller with limousine rides and bottles of Chardonnay. However, they still try to do their best in making you feel special.
Pretty much all online casinos give you the chance to exchange loyalty points for cash. The average site offers you $1 back for every 1,000 loyalty points.
Free slot spins are another common reward at internet casinos. For example, you might receive 50 free spins after making a deposit.
It’s important to realize that these spins aren’t truly “free,” because you often have to meet terms and conditions to withdraw winnings. However, you still have a chance at earning free money with these offers.
A small percentage of gaming sites even allow their players to exchange points for merchandise. For example, they might let gamblers to trade in points for a vacation package or smartphone.
Deposit bonuses are also available through loyalty programs. A deposit bonus refers to getting a bonus worth a match percentage on your deposit amount. For example, a casino might offer a 100% match bonus up to $200.
The deposit bonus’ match percentage and max value both increase as you move up the loyalty program. Using the example above, you might get a 200% match bonus up to $1,000 at the highest VIP level.
The Big Problem with Casino Rewards
Having the ability to earn everything from cashback to a high roller suite with comps sounds great, but you should never get too carried away when it comes to comps.
Nothing in the casino is truly free. Gambling establishments don’t offer rewards out of the goodness of their hearts but rather to retain players’ loyalty.
They’re not going to give the average gambler so many comps that they walk out of the casino a rich person. Instead, these rewards are methodically calculated to ensure that the casino still makes a healthy profit.
In most cases, players don’t even receive pennies on the dollar. Comp rates are extremely low and don’t offer much value from an overall perspective.
Here’s an example:
- You bet $1,000 on a slot machine.
- The casino offers a 0.1% comp rate.
- 1,000 x 0.001 = $1 in rewards
- The game has a 7% house edge.
- 1,000 x 0.07 = $70 in theoretical losses
- 70 / 1 = Theoretical losses are 70x greater than comps
You can obviously see from the math that these rewards aren’t worth anywhere near the theoretical losses. Why then do gamblers get so hyped up about comps?
Most players don’t even realize how little they’re earning in rewards due to the fast speed of casino games. A slots player may spin the reels up to 600 times in an hour. A mini baccarat player might see up to 150 hands per hour.
Playing at this rate ensures that gamblers put in a decent betting volume. Therefore, they may end up with a free meal at the end of 5-6 hours.
This might seem like a great reward after an entertaining day of gambling. But it doesn’t even come close to equaling what a player stands to lose.
I’m not saying that you shouldn’t still enjoy comps as part of the gambling experience. However, it’s important to keep in mind that they’re not worth anywhere near what the average person thinks.
I just showed low little slots comps are worth in comparison to how much a player bets. Here’s one more example involving table games, which feature an even lower comp rate:
- You bet $1,000 at a blackjack table.
- The casino offers a 0.05% comp rate for table games.
- 1,000 x 0.0005 = $0.50 in rewards
- The game has a 2% house edge.
- 1,000 x 0.02 = $20 in theoretical losses
- 20 / 0.5 = theoretical losses are 40x greater than comps
The ideal way to treat those rewards is exactly as their name implies – a reward. Don’t, however, play longer or bet more just to get an upgraded deal.
You’re actually better off buying your meal or paying for a hotel room outright than risking extra losses.
You Should Still Make an Effort to Get More Rewards
Gambling comps aren’t all they’re hyped up to be. But that doesn’t mean that you should overlook them and other ways to increase your rewards.
It’s still worth the effort to get the best comps possible. Here are a few tips that will help you find nice deals and earn more freebies.
Research Casinos with Good Rewards Programs
Some gambling establishments have a reputation for featuring better VIP programs than their peers. You definitely want to give these casinos some consideration if comps are a priority.
Of course, most gambling venues offer comparable rewards rates to each other. But you can find some separation with enough research.
For ExampleYou can visit the loyalty plan pages at online casinos and see what type of comp rates they offer. Gaming sites typically see you receive one point for every $1 bet on slots or scratch cards.
You can then exchange 1,000 points for $1 in cash back. However, if you see that a site gives you more points and/or a better exchange rate, then their loyalty program is more lucrative.
Land-based casinos are a little trickier to research because they don’t all offer specific numbers on their rewards. However, you can look at gambling forums and articles to find info on which casinos offer the best comps.
Take Advantage of Double Point Promotions
Gambling venues typically run promotions to encourage customers to gamble more. Double and triple-point offers are among the most-common promos.
These deals allow you to pick up double or triple the normal amount of loyalty points based on your bets. If you normally get one point per dollar wagered on a slot machine, for example, then you’d receive two under a double-points promotion.
Visit a casino’s website and their social media pages to keep tabs on these offers. You should also sign up for their email newsletter to find the latest deals.
Increase Your Loyalty Status
The easiest way to boost your gambling comps is to become a better customer. Casinos offer the highest rewards to the biggest gamblers.
Of course, I’m not advising you to bet above your budget. But if you have the funds and get more thrills out of large wagers, then you can also look forward to better rewards.
Casinos usually increase the rate at which higher VIP members earn loyalty points. Here’s an example:
- Bronze members = 1 point per $1 wagered
- Silver members = 1.25 points per $1 wagered
- Gold members = 1.5 points per $1 wagered
- Platinum members = 2 points per $1 wagered
The drawback to betting more is that your chances of losing more also increase. However, you can at least look forward to getting more comp value from your wagers.
Know How Different Games Offer Different Comp Rates
Games and bets with the highest house edges offer the most rewards per bet. Slot machines, keno, scratch cards, craps prop bets, and American roulette are among the games that deliver the most comps.
Meanwhile, table games with low house advantages aren’t very generous in terms of comps. Baccarat, blackjack, most craps bets, European roulette, French roulette, and video poker deliver the fewest rewards per wager.
You, of course, shouldn’t play casino games for the comps alone. But you should at least note which games are more likely to offer big comps.
If you already like slot machines, for example, then you might decide to play them over European roulette. You’ll likely lose more money with slots, but at least you’ll get a few more comps in return.
Join a Casino’s Newsletter
I’d like to reiterate the importance of joining a casino’s online newsletter to receive the latest offers and deals. Gambling establishments commonly list their latest promos in their newsletters.
For ExampleYou might get $25 in free blackjack play that’s only available to the subscriber’s list. You could get a free buffet coupon or some other type of freebie.
Don’t stop with the newsletter, though, because casino social media pages can also contain great offers. Visit your favorite casino’s Facebook page and Twitter account to see what’s on tap.
Trick the Pit Boss with Table Games
I mentioned earlier how the pit boss watches your first few bets to rate your play. If they see you making $25 blackjack bets, for example, then they’ll rate you as a $25 player.
However, the great thing about land-based table games is that you can potentially fool the pit boss. They can’t watch you play forever, meaning you can switch up your bet sizes to earn more rewards.
Here’s an example:
- The pit boss comes over to rate you.
- You start making $100 blackjack bets.
- They leave after a short while.
- You drop your bets down to the $10 table minimum.
- The pit boss ends up rating you at $100 per hand.
- You therefore get 10x the rewards that you deserve (100 / 10).
This technique isn’t a foolproof way to boost your rewards. The pit boss could come back around when you’re not expecting it and see you wagering $10.
What Slot Machines Have The Best Payouts
They may give you a rating somewhere in between $10 and $100 as a result. Or they could just drop you all the way down to a $10 player.
The dealer could also rat you out, especially if they’re not satisfied with their tips. While the pit boss doesn’t have all day to watch you, the dealer, meanwhile, has observed all/most of your play.
But even if you don’t get a higher rating, it’s at least worth trying to trick the pit boss. The payoff is great in terms of comps, while the risk is virtually nonexistent. This method isn’t like card counting, where the casino can prove you were trying to dupe them through advantage play.
Conclusion
Comps are a fun byproduct of playing casino games. They include plenty of cool perks, such as free drinks, cashback, limo rides, free slots spins, deposit bonuses, hotel rooms, and meals.
You should definitely take advantage of rewards whenever playing casino games. But you also have to be careful not to get carried away.
Casino Comp Calculator Quick
Far too many gamblers overvalue comps and chase them. This decision is a huge mistake because the theoretical losses are always much greater than the rewards are worth.
Casinos only offer around a 0.1% comp rate on slots and a 0.05% rate on table games. Some venues feature even worse deals than these.
Low comp rates ensure that you don’t have much of a chance to earn big rewards per dollar wagered. The only way to gain a significant amount of comps is by betting big and/or playing a high volume.
You should cash in on rewards if you naturally play a lot of casino games. But don’t go out of your way to chase comps.
A much better approach is to let rewards come naturally. Play and bet whatever feels natural, then collect whatever comps come as a result.
Casino Comp Calculator Net
Of course, you can also do little things to boost your rewards as well. Look for casinos with good VIP programs, cash in on double-point promotions, and join your favorite casino’s newsletter.