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Harrrah’s Low Rollers Account for 80% of Revenue & 100% of Profits

16 pointsby kimboslicealmost 17 years ago

2 comments

mattmaroonalmost 17 years ago
I think they've got the cause and effect backward there. Harrah's low rollers account for so much of their overall action because their casinos are so bad that high rollers avoid them. You can't simply assume that because all of their action comes from low rollers, they are pursuing some sort of brilliant strategy that nobody else is by not courting the high rollers (when they could easily go after both).<p>I'm guessing the 30% of low rollers that return very frequently are largely locals or near-locals (Harrah's has casinos in damn near every gaming jurisdiction in this hemisphere). Harrah's does a great job of catering to them.<p>Much of the other 70% would probably be mid-rollers, who I'd call value gamblers. They give the casinos just enough action to get some good freebies and nothing more. They end up spending less than if they had just booked the hotel and paid for food like a low roller does.<p>Harrah's does comp those two groups much better than anyone else. That also makes them the easiest to abuse comp program on the strip.
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steelydanielalmost 17 years ago
Not even a surprise--thats how the casino biz works. High rollers are there for the resort to create buzz and bring people in. Just like Mercedes puts an SL convertible on the showroom to bring in gawkers, and some of them leave with a C class. Amex spreads rumors about a black card---it increases the wannabes signing up for credit cards.
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