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Anyway, here’s the rest of the message from Fontainebleau: “For added simplicity and transparency, we are making some changes to Fontainebleau Rewards. Beginning on May 1, 2024, at 8 a.m., you will earn Play Points to accumulate as slot free credits based on the following calculation methods: Slots, 1 Play Point for every $5 of coin-in; Video poker, 1 Play Point for every $10 of coin-in.”<\/p>\n
Free play is awesome, and one of the perks of loyalty. Casinos aren’t obligated to give players anything back, but free play is a way to keep guests returning again and again.<\/p>\n
That said, it’s useful to compare the changes to the original calculation methods<\/a>.<\/p>\n Previously, calculations were made thusly: Players earned two points for every $1 of rated play on both slots and video poker.<\/p>\n “Rated play,” according to the Fontainebleau Web site, “is determined by average bet, game type and length of play.” Also known as “theo,” or “theoretical” loss. Players tell us they previously earned a point for $4-5. So, it’s been a little fluid.<\/p>\n We are not a math person, but according to our calculations, the new program is roughly 900% worse for slots players and 1,900% worse for video poker players.<\/p>\n That’s right. For $1,000 of coin-in, video players get $1 in free play.<\/p>\n On the bright side, Fontainebleau assures, “The redemption value of Play Points will remain unchanged: 100 Play Points = $1 Slot Free Credit.”<\/p>\n So, the subtext.<\/p>\n It’s a little awkward.<\/p>\n This tightening of the belt means a couple of things.<\/p>\n It means Fontainebleau made a major miscalculation when it opened, namely that its loyalty club was “too generous.” This shouldn’t come as a huge surprise as Fontainebleau has never operated a casino before.<\/p>\n What it also means is the struggle is real, and Fontainebleau is making moves to try and bolster its revenue. That’s due to pressure from the top, Jeffrey Soffer, Chairman and Chief Executive Officer of Fontainebleau Development. Soffer, in turn, is getting pressure from Koch Industries, the folks who helped pay for the resort, in addition to a $2.2 billion construction loan.<\/p>\n The change in the loyalty club seems to be a painful but necessary adjustment, and it gives the appearance of increasing revenue (give back less for play, margins are higher). The problem is such loyalty club incentives are what build, well, loyalty. Perks and freebies are an integral part of casino marketing. Trimming down the perks is a short-term solution to a much bigger problem.<\/p>\n Multiple problems, really: Fontainebleau is in a challenging location (there’s no foot traffic), the company has no casino database to speak of, and also has no hotel partner (hotel partners come with massive marketing databases).<\/p>\n Along with the firing and resignations of a dozen top executives<\/a>, Fontainebleau is getting a reality check, with few signs there’s a plan to overcome those seemingly insurmountable obstacles to success.<\/p>\n Hint: It’s not effective outdoor advertising, all due respect.<\/p>\n Advertising 101 QoD: If you saw this billboard, what would you think Fontainebleau is? pic.twitter.com\/uV0sNLrWWi<\/a><\/p>\n — Vital Vegas (@VitalVegas) April 1, 2024<\/a><\/p><\/blockquote>\n\n