Las Vegas Sands has eliminated free hotel rooms and other free services for middle-floor customers at two of its strip resorts, a move that gambling experts called “horrific.”
High-end gamblers still receive benefits such as tickets and meals for the show.
Company officials said the move was taken to boost hotel room bookings through group sales with InterContinental Hotels, which began marketing Venetian and Palacho through its 52 million membership compensation program last fall, and a partnership with Las Vegas Sands.
On a fourth-quarter earnings conference call at Las Vegas Sands, Chairman Sheldon Adelson said the removal of Comp helped sell hotel rooms at The Venetian and Palacho, which led to a significant increase in cash revenues. 메이저 토토사이트
“We know that the theme of comp has been played out across Las Vegas, but we’ve taken a different stance,” Adelson said. “We’ve essentially blocked all accounts except for the most highly rated players. There are no more packaging agreements to compete with other players. There are no more comprooms on offer. There are no food or drink credits anymore. There are no restaurant credits. There are no showroom credits either.”
Anthony Curtis, a gambler who runs the Las Vegas Advisors website, said he has heard rumblings about Sands’ new comp policy over the past few weeks. What’s unclear, he said, is where the company is drawing cutoff points.
“What happens to your slot club?” Curtis said. “Computer systems are such a vast network. I’ve never heard of not competing in the middle market. This can be a terrible thing to do.”
Curtis and Union Gaming Group Chairman Bill Lerner have never heard of the fact that other casino operators at Streep have introduced drastic changes to their complementary systems.
“If they did, it was done much more quietly,” Lerner said.
Las Vegas Sands saw net income from Venice and Palacho rise 16.5% to $310.6 million in the fourth quarter, representing just 15% of the company’s total revenue of $2.02 billion for the period ended Dec. 31.
The company said adjusted cash flow in Las Vegas during the quarter was $80.6 million, up 41.7% from a year ago. Las Vegas Sands officials said operating efficiency and cost savings contributed to an adjusted property cash flow margin of 25.9%.
Lerner said casino operators have stepped up their promotional services over the past few years as cost-cutting measures to address a drop in revenue from the economy.