Casino Industry Rewards, ADT and ITV

Casino Industry Rewards, ADT and ITV should all go hand in hand. Loyalty Programs needs more than just ADT to decide players comps. ADT, or Average Daily Theoretical, is what drives the casino industry comp system. ADT measures your worth to the casino. With local casinos so close to so many Americans, gambling has never been more popular. But the loyalty system based on ADT needs something more  – it needs ITV.  We know about casinos and your ADT, but what’s ITV you ask? Read on….

Related Post – Casino Comps and “Average Daily Theoretical”

TravelZork’s Michael Trager recently wrote an article “Why Vegas Casino Loyalty Is Broken.” It looked at what is happening in Las Vegas with casino rewards and casino fees. And previously, in his TwitPic of the Week Monologue (360 Vegas Podcast Episode #282) Mark Wojtowic referred to it as well. Both inspired me.  So, I ask you, “what is the casino industry missing in offering a better recreational gambling experience?”

What motivates our recreational Gambling experience?

 

Intrinsic motivation refers to behavior that is driven by internal rewards. It’s something that arises within the individual because the behavior is naturally satisfying. This contrasts with extrinsic motivation, which involves a behavior to earn external rewards.

ADT is built on extrinsic rewards – comped dining, entertainment and free slot play. The physical casino also offers extrinsic motivation. Sounds, chair comfort, colors and casino design all aid to offer some form of endorphin release. Even the scent of casino air is sometimes artificially enhanced for the gambler’s benefit.

Recreational gambling offers lots of extrinsic rewards. But the gaming industry has forgotten, or chose to disregard, the most important part. The chance of winning and the time spent in the chase is more important than all of that.  In other words, the intrinsic incentive of fun in recreational gambling is ceasing to be a factor.

Average Daily Theoretical and Intrinsic Motivation

Average Daily Theoretical is your value to the casino. The math to determine your ADT is based on the above.

ADT (Average Daily Theoretical) is how the casino measures your worth. It considers how much you play, the denomination of your play, and the length of time you play in a day. I suggest it’s time we, the casino guest, measure the casino’s worth by developing a new measurement called IVT (Intrinsic Theoretical Value). It would be a measure of bankroll length, gaming rules, rewards club comparisons and winnings.

Seriously, an ITV sounds crazy, but, it could work. The player would log the following when gambling:

  • comparing length of bankroll,
  • gaming rules
  • awarded comps  “over time”
  • and maybe an ambiance/fun quotient

We then would compare casino value in a vaguely measurable way. Think how cool it would be to visit a casino on the basis of their “ITV.”  Casino Industry Rewards, ADT and ITV – are they a future consideration?

Lower slots odds, 6:5 Blackjack, automatic shuffle machines, less odds at the Craps table, and unplayable video poker, have damaged our intrinsic motivation. Give the player less “bells and whistles.” Increase the hope of winning and the length of time our bankroll lasts. The ever-present greed in the gambling industry is causing a feeling  of “why bother?” This is your recreational gambling ITV taking a hit.

las Vegas data misunderstood?

Las Vegas

Resort Fees, Low Gambling Value Increses in Las Vegas & the rest of the U.S.

In Las Vegas, gambling CEO’s seem puzzled by the dip in gambling revenue. But most months have a higher visitor stat. One main reason is that the total gambling bankroll is shackled. Parking fees, resort fees, CSN fees, higher food and drink prices, and less player comps are all the culprits. Add a bigger house edge with game rules and pay out percentages like 6:5 BJ and 7/5 video poker and “why bother?” That response is an internal feeling of hopelessness in the experience of gambling, a decreased ITV.

Casino Rewards Clubs are also squeezing the fun out of the experience.  Cut backs in comps and rewards, such as in CET’s Total Rewards and Boyd’s B Connected, are changing where we gamble. One example is shortened periods for accruing rewards points . Another is the tightening of casino rewards programs, making it harder to rise in tier level.

Conclusion

IVT will increase with greater hospitality, gambling options, and less “nickel & dining.” CEO’s wouldn’t need to be looking for skill-based games, stadium gaming and sports betting as THE panacea for their misappropriated understanding of getting guests of all ages through the doors.

It’s really so simple. I feel good when my gambling experience lasts longer and is potentially better financially. I will visit more, stay longer, and take in more amenities at the casino property inner motivation has been met.

Binbin

 

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One thought on “Casino Industry Rewards, ADT and ITV

  1. Monika M. Wahi, MPH, CPH says:

    Binbin, I couldn’t agree more. I’m a data scientist, and I met a Foxwoods data scientist at a Meetup. I learned that they did not have good algorithms for figuring out what boring slot machines to get rid of! No surprise – that’s why all those machines sit unplayed taking up space, LOL!

    It is ironic that an industry built on statistics is terrible at moneyballing their own statistics. It would improve both their bottom line and the player experience if they stopped trying to turn us regular people into high rollers and instead just tried to attract us to the casino to spend our money more often in the first place. Each time you go you buy food and drink. A million people spending one dollar each is still a million dollars!

    Love your articles! Keep ’em coming!

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