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PART III
Cash Back
The costs and benefits of providing Cash Back through slot programs to slot machine players.
By Andrew MacDonald
Senior Executive Casino Operations, Adelaide Casino, 1996
Casino Analyser
Reference

Cash Back

Introduction | Cash Back Example | Conclusion |

Many Slot Clubs today provide cash back to their players based either on a percentage of turnover or theoretical win. This in many cases has been done to replace gift redemption schedules where gifts (toasters, cameras etc) were redeemed for points accrued through the play of gaming machines.

Slot Clubs themselves have become prevalent for a number of reasons including; generating player loyalty through rewards and providing an immensely important direct marketing tool.

Because of the importance of Slot play to the Casino business these Clubs have become more and more sophisticated and over time Slot managers have realised that "Cash Is King" in this area of their business too.

Thus "Cash Back" has become the "cry" from many a Casino Slot Club.

The question is what does this really cost the operation and what immediate growth in results may occur as a direct consequence of the Casino or Slot operation giving people a rebate on play which they may put back through the gaming machines if they so desire.

Lets look at the following example and see if we can work this through.
 
 
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