The Relationship Between the Casino and its Whales

Filed in archive Casinos on August 10, 2006

We've all heard myths and stories of high rollers in casinos - happily betting a few hundred thousand on the spin of the wheel. In casino-speak, these whales are subject to full-on celebrity status - perks include penthouse suites, private jets at your Beck and call, the best show tickets and million dollar credit lines.

But do casinos really still want these whales? Some of these high rollers can affect casinos revenues with a streak of good luck. As such, casinos are looking elsewhere to deliver their profits - including entertainment and food. An average $100 player is now the bread and butter of casino profits.

Whilst there are a few casino groups that continue to target high rollers, others, such as Tropicana, have dropped out of the race. They've found that winners streaks can affect profits drastically, lowering table win percentages by a number of points. Conversely, if the casino has a lucky streak, the opposite is true - and the profits can increase.

However whales can still inspire stories of legendary status in the casino world - The number of whales have increased over the years, especially within the Asian market and competition is still high - and secretive - to catch them.

The risk involved may seem high - but as many casinos now belong to huge corporations, the risks can be spread across the group

"You market to them one at a time," Bill McBeath, president of MGM Mirage's Bellagio casino, said of wooing the high-stakes gamblers who are willing to part with big bucks.

The stakes are high. A few high rollers can either leave a dent in a casino's revenue or boost its profits. But while there are more whales than ever, their hold on a casino company's overall fortunes has waned.

Consolidation in the industry over the last few years has created behemoths such as Harrah's Entertainment Inc. and MGM Mirage, who due to their size and mass markets are less susceptible to the vagaries of Lady Luck.

Article: Vegas casinos 'whaling' for the biggest spenders