50+ Years Casino Company Reveals How Casinos Are Losing Billions!

$37 Billion a year in lost income! Acres casino expert with 50+ years of experience in casino tech talks us through how casinos are losing billions in profits. (Photo by Carl Raw on unsplash.com)

When you imagine yourself as a casino business owner, you would probably be driving a top-performance sports car, jet-setting on luxurious holidays, and generally wanting for nothing.

Although most casino owners are affluent, even some of these astute business moguls appear to be losing some of their fortunes, according to a report by Acres. This company has been serving the casino industry since 1972.

The study reveals that many casinos could plug holes in the system and increase profits by making a few simple changes to loyalty programs and offering free play to land-based customers. Wealthy casinos can then become wealthier or find better ways to invest. Conversely, struggling casinos could turn things around and become financially stable, while newly opened casinos looking to break out as major brands could increase profits.

With the latter, two examples in the previous paragraph, many casinos don’t make the cut and end up folding. That means job losses, lost investment, and lost taxes for the economy.

By the way. If you are an online casino player and you are worried about what will happen if your casino folds, don’t worry. As long as you signed up to a site with MGA, AGCO, Curacao or UKGC licensing, these casinos keep your balance separate from their day-to-day operations. This means auditors cannot pay back the operator’s debtors using your balance. The casino will send you a forewarning and either force a cashout to your selected withdrawal method or give you a time limit to withdraw.

You can find out more by reading our guide that covers paying at online casinos with reputable licensing. It covers the main licensing authorities for players who want to play from the UK, Ireland, Canada, New Zealand, Australia, India, and South Africa.

Acres Reveals Why the Casinos Industry Loses Up to $37 Billion in Lost Profits

The company found that many casinos use outdated loyalty rewards systems, and free play offers contribute to billions in lost profits across US live casinos. Acres’ study predicts a whopping US$37 billion in lost profits when totalling losses across these venues. These figures derive from sample research of 200 land-based casinos in the US.

Over-investment in Loyalty Programs

A key reason identified for the losses is over-reinvestment in VIP loyalty programs. A few establishments sometimes invest over 100% of their profits. One reason for this over-splurge could be the competition from other local venues in major gambling cities/states. Also, casinos not operating out of Las Vegas or Atlantic City, the management team feels investing in its loyalty program so heavily could attract the whales and tourists away from these major cities.

Furthermore, the Acres report added that many of these loyalty programs rely on loyalty program profitability purely from players not using their loyalty rewards optimally. It’s a pretty dangerous game! Yet, I can see their logic. My wife and I have many loyalty cards from various supermarkets and retail stores, and we rarely take full advantage of the points systems. These casinos are likely banking on people like us.

Acres’s report says the average net investment is slightly over 35% when considering all gambling entertainment venues. The value for this percentage, or percentile (however you prefer to say it), is $25 bullion.

Online Casino Loyalty Programs: Your real money bets should collect loyalty points when you play at an online casino. You can cash these in for real money, buy promotions, and if you are a high roller, you receive red carpet treatment such as VIP support, increased max withdrawal limits, and a personal manager.

Allowing Players to Overindulge in Free Play Gaming

Most online casino players love the fact they can play online slots for free. Every week, we release the New Online Casino Games update (the next one is today after this news). The beauty of these new games is you do not have to jump in with real money as soon as they come out. Online casinos offer free play mode, allowing you to test the gameplay and get a grip on what the game offers before diving in.

It is all very well offering free play game time at an online casino. However, it seems the report by Acers feels that offering land-based casino players too much time playing free play games depletes profits. There is a hint that this applies especially to novice players and those who are on a time limit. The latter are players that come in just for the evening and have a quick flutter on the slots before heading out for the night or home because it is a work night.

All considering all these factors, casinos could have a US$37 Billion reinvestment opportunity across the board if they streamline loyalty and free-play gaming offers.

For the full lowdown from Acres, look at the Acres company’s new pages. The research I took this information from was the ‘Acres Study Reveals Free Slot Play Costs Casinos US$37 Billion in Annual Lost Profits’, which will take you to a prnewswire.com report.

What is US$37 billion in your Currency?