INSIDE LOOK AT CASINO JUNKETS

• How Do Casino Hosts Make Money
• How Do Casino Hosts Make Money Youtube
• How Do Casino Hosts Make Money Fast
• How Do Casino Hosts Make Money At Home
• How Do Casino Hosts Make Money Using
• How Do Casino Hosts Make Money Free

By Henry Tamburin

'A host provides the best restaurants and nightclub tables so I don't have to deal direct and run the risk of non-personalized service,' says Stardust Pictures producer Justin Levine. The average salary for an Executive Casino Host is $49,872. Visit PayScale to research executive casino host salaries by city, experience, skill, employer and more.

Casino Junkets began in the mid-50’s as a way to entice players to Las Vegas to gamble. Junket programs in those days were pretty straightforward. Casino operators would hire junket reps to fill a plane with qualified gamblers. These players would get free airfare, free hotel accommodations, free meals, free shows (and just about anything else they wanted) in exchange for their commitment to gamble a specific number of hours per day at an explicit average bet size. The casinos of course were gambling that the players would lose more than their out of pocket expenses for bringing, housing and feeding them.

That was the past. To get a fresh look at how junkets operate in 2005 and what benefits they provide players, I interviewed junket rep Sandy Crammer, owner of S&S Casino Tours, and Jeffrey Hoss, Director of National Casino Marketing, for Harrah’s. What I learned about junkets might surprise you (it did me).

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So let’s begin by defining what exactly does a Junket rep do?

Jeffrey Hoss: First off, in the Harrah’s organization we refer to our third party reps as Independent Agents rather than Junket Reps. Independent Agents send us customers (i.e. players) and in return they get a commission based on a player’s theoretical. We have about 185 Independent Agents representing 47 states and 5 international countries that have a specific territory that they can market and promote our properties to their customers. In total our Independent Agents have scheduled about 300,000 customer trips annually to Harrah’s properties.

I’d like for you to explain “theoretical” to our readers but before you do, let me ask Sandy how she got started in this business.

Sandy Crammer: Before I started my own company, I ran a junket office as in-house employee for many years and I decided it was something I liked and wanted to try on my own. So my husband, Scott, and I started our own business and thankfully, Harrah’s decided to take a shot with us four years ago to represent them. We have three employees in our company and currently we are one of the top 5 Independent Agent producers for Harrah’s.

What areas do you represent for Harrah’s?

Sandy Crammer: I currently represent Harrah’s in Boston, MA; Providence, RI; Detroit, MI; and I’m expanding to Grand Rapids, MI.

How many package trips do you typically offer your clients?

Sandy Crammer: On a monthly basis I usually schedule into Atlantic City 2 flights from Boston (except 3 to 4 flights in the summer months), one flight from Providence, RI, and one from Detroit, MI. These are flights on a 120 seat chartered plane. Also every month we contract commercial airfare to Harrah’s properties in New Orleans, Las Vegas, Reno, and Lake Tahoe. We usually do about 20 seats per month from our markets to those areas. We also run about 6 charter flights a year (130 passenger planes) to Laughlin and Reno/Lake Tahoe. In an average month we probably have 800 or more customers flying somewhere to Harrah’s properties.

What are the play and front money requirements for a junket?

Sandy Crammer: There are no front money requirements. The play requirements depends upon what our guest is looking for, e.g. do they want to go on a charter flight, do they want their airfare comped, or are they driving to their destination and only looking for a room comp. We offer different packages in which some are totally comped and others it’s buy one get one free or we charge the customer a nominal fee for the air and accommodations.

What would be the play requirement to get free airfare and free accommodations?

Sandy Crammer: As a rule of thumb, to get free airfare and accommodations, a quarter machine player is expected to play 5-6 hours per day (less time if playing dollar or higher machines) and for table game players its 5-6 hours per day at an average bet of $75+. If a player historically meets those requirements he or she would qualify for comped airfare and accommodations on one of our packages.

What if a player doesn’t quite meet those requirements?

Sandy Crammer: They would have to pay a nominal fee for the air and room. For example, we recently offered our Boston and Providence customers the following 3 day/2 night discounted Atlantic City package that included round trip airfare from Boston (or Providence) airports, room accommodations, and transfers to and from the hotel for only $179 per person.

So how do you go about scheduling the trip you just mentioned and getting the plane filled with qualified players?

Sandy Crammer: I work with the marketing folks at Harrah’s Atlantic City casino that support junket programs. They send me a schedule usually months in advance of dates that are available for me to bring in my customers. I decide which dates I want and Harrah’s then charters the plane for me.

Jeffrey Hoss: Outside of Atlantic City, we have an individual dedicated to scheduling the 6 rotations in service for our casinos in Laughlin and Reno/Lake Tahoe. The schedule is determined in advance of three to four months and we work collectively with independent agents on dates and how they will market to them.

So now you are responsible to fill the plane with 120 qualified players. How do you do that?

Sandy Crammer: I have an extensive list of 20,000 or so casino players in our computer database. For each player I know their past play history as far as how many trips they have taken, how long they play, what their average bet size is, how much they won or lost and their theoretical. I then mail out about 7,000 letters per month to those players that have in the past met the play requirements that Harrah’s is looking for. The qualified players that respond to our mailings get a seat on the plane. If I can’t fill the plane completely with qualified players then I invite players on the next tier that would have to pay the $179 fee for air and room.

Jeffrey Hoss: It is actually working so well with Sandy’s customers and others that we have made a commitment to bring in a 150-seat MD-83. Sandy has done such a wonderful job in marketing to her customers, we are confident that there is demand for additional seats.

How do you get all that play information on your customers?

Sandy Crammer: Every player that I send to a Harrah’s property gets coded to me. At the end of each of my packaged trips I get a report from Harrah’s that summarizes for each of my customers their entire play history during their trip. This information for each player in put in our database and it’s how we determine which customers qualify for different packages that we might offer.

Do you have the power of the pen in a casino?

Sandy Crammer: No, I can’t approve comps for my players nor do I have access to Harrah’s computers to review player information. But what I will do is contact the marketing department and tell them so and so in my group wants a comp to a specific restaurant. They would look up the playing history of that player in their computer database to see how many comp dollars the player has in his account. In most cases our players have accrued more than enough comp dollars based on their play to cover the cost of meals.

Jeffrey Hoss: Our Total Rewards program allows the customers to decide when and where they want to spend their comps. This alleviates the Independent Agent from making those decisions.

What benefits can an Independent Agent provide their customers?

Sandy Crammer: Besides providing travel arrangements for them, we provide our customers with just about anything else they need such as making reservations for dinners, shows, casino events, golf, ground transportation, you name it. Our guests know that they can call us for all their bookings at all of Harrah’s properties. Plus someone from my office will travel with the group to assist them in their needs.

Jeffrey Hoss: A player who wants to visit multiple Harrah’s properties can benefit from the services of an Independent Agent. They not only can provide the customer with services for say our property in Laughlin, NV but also our properties in New Orleans, Atlantic City, or elsewhere.

Are there different types of Independent Agents and do they have to be licensed?

Sandy Crammer: Yes, some are responsible for full charter aircrafts (which I am) while others Agents might only send a property an individual reservation (they are known as splinter reps). Independent Agents have to be licensed in all jurisdictions that they represent. For example, in the Atlantic City market we have to be licensed every 4 years and it costs $3,000. We must go through a detailed licensing process to obtain and maintain our Enterprise License. Other gaming jurisdictions that we do business in have a similar,but not as expensive, licensing procedure.

Jeffrey you mentioned that Independent Agents get paid a commission based on theoretical. Can you explain what that means?

Jeffrey Hoss: Our Independent Agents get a commission based on each player’s theoretical or their expected long-term value to the casino. The latter is dependent on the players average bet size, length of play, and the casinos mathematical advantage over the player in whatever game he or she is playing. We track these variables for each player either through the use of a player’s card if the player is playing slots or video poker or in the case of table play, our floor supervisors will rate the player and input the above information in our data base. We can then compute the theoretical for each player or roll the numbers up to a theoretical for all the players coded to Sandy. An Independent Agents commission is based upon a percentage of the groups theoretical with a sliding scale depending upon the total group expenses so the more expenses incurred by the group, the lower will be the Independent Agents percent commission. This way our Independent Agents would get penalized if their players didn’t play up to their expected playing levels or were over comped for their play.

Why would a casino player use the services of an Independent Agent rather than a casino host?

Sandy Crammer: We consider ourselves one-stop shopping for all our customer needs and we have the ability to get it all done at more than one property. Because we represent a company like Harrah’s we can offer our customers many more options. For example a player doesn’t have to have a casino host in Atlantic City, another in Las Vegas, New Orleans, Reno, etc. They just call us for all their travel needs regardless of the destination.

Jeffrey Hoss: Our Independent Agents can market more than one Harrah’s property to their customers. People like to travel more and visit different parts of the country. Harrah’s owns or manages casinos in 12 different states including Arizona, California, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nevada, New Jersey, and North Carolina. Our casino hosts and their staff at each property also provide support to our Independent Agents. So using the services of an independent Agent makes sense if you like to travel and visit more than one property.

Sandy, is there a turf issue for players between an Independent Agent and a casino host?

Sandy Crammer: Let me put this way. Our customers are coded to us internally in each property and it is how we get paid. If one of our guests starts dealing with a casino host we could lose that code and our commission payment. We spend thousands of marketing dollars every month for mailings to our customers to keep them informed of our upcoming trips and special events that are not reimbursed by the casino.

Jeffrey Hoss: We view this relationship similar to that of a pitcher and catcher, using a sports analogy. A property host will treat an Independent Agent’s customer just as they would treat one of their own. Harrah’s Entertainment prides itself on customer service and once they visit a casino, whether it is an invitation by Sandy or by a property host, we will do everything in our power to make their stay an enjoyable experience.

Have you ever had an issue with a customer not playing up to his or her expectations?

Sandy Crammer: It’s rare when this happens and when it does it’s usually because the player wasn’t feeling well. You’ve got to remember that the players who get invited on our packages have a history of playing at a certain level over a certain time period. They usually maintain that playing level from one trip to the next.

What if they don’t? What do you do?

Sandy Crammer: The player is dropped from our qualified list of players and if we invite them on another package trip they would have to pay the nominal fee we charge for air and room.

Do you have to be a high roller to go on one of your junkets?”

Sandy Crammer: As I mentioned, there are specific play requirements if you want your air and accommodations comped. However, we offer Tour and Travel packages to different Harrah’s properties that require a nominal charge for air and hotel. We find that a lot of customers start out through our Tour and Travel packages and then if their play warrants, get qualified for comped airfare and accommodations.

Can a qualified player bring his spouse on a junket?

Sandy Crammer: In most cases, yes. However, we would review the play history of the qualified player to be sure it’s enough to cover the added expenses of his spouse.

Jeffrey, can you give some examples of some recent trips your Independent Agents have scheduled for their customers to different Harrah’s properties and their cost?

As an example, Sandy has a trip that is going out of Detroit on June 23rd for five nights for $449 to Tahoe or $419 to Reno.

Here are a couple of other dates and costs:

6/2-6/7 Peoria, IL for $369 to Tahoe or $339 to Reno

6/4-6/8 Atlanta, GA for $379 to Laughlin

6/21-6/25 Columbia, SC for $399 to Laughlin

Jeffrey, how can a player contact a local Independent Agent?

Jeffrey Hoss: You can call our call center at 1-800-HARRAHS and ask for the name and phone number of the Independent Agent closest to where you live.

How Do Casino Hosts Make Money

A is a great way toraise money for charities or non-profits. Although, running a successful fundraiser is easier said than done. No matter how big or small the event, there’s one thing we can always attribute to their successes: proper planning! For example, when we ask hosts”How much money would you like to raise?”most realize they haven’t given it anythought.Key steps like settingrevenue goals are a crucial part of the planning process. Another important factor is to determine what tables are legal to use in your state. For example in the state of CA,games such as roulette, blackjack, banking or percentage games, and dice games, when offered for play for anything of value, are prohibited by Penal Code section 330.These games are prohibited as they are not controlled games, and therefore cannot lawfully be offered at charitable fundraising events –https://oag.ca.gov/gambling/charitable, for more information. Every state is different so it is imperative to check with your local legislative to see what is acceptable at your fundraising event.

CalculatingRevenue & SettingTicket Prices

How Do Casino Hosts Make Money Youtube

Having a realistic goal of how much money you would like to raise is the key starting point. It determines ticketpricing and the limit of your expenses.Ask the following questions:

• How much money do you want to make? =Net Profit
• What’s the max numbertickets you expect to sell? =Tickets
• What is the total amount of projected expenses? =Expenses
• What is the total of my net profit plus all my expenses? =Gross

Net Profit+ Expenses= Gross

Gross / Tickets = Ticket Price

For Example say you wantto raise$3500 at your fundraiser. You aim to sell200tickets and yourtotal expenses are projected to be $1500. To determine what pricing your tickets should be, add $3500 to $1500 which equals $5000 then divide this by the total number of tickets you aim to sell. $5000 divided by 200 is $25 per ticket sold. Once you have calculatedthe price per ticket, ask yourselfif this amountwill support your revenue goals. It is possible you may not be able to sell your proposed quantity of tickets at this price. For example, if I sell 175 tickets at a rate of $25 per ticket sold that means I’ve earned $4375 from my event. With my expenses estimated at $1500, I would net only $2875 from the fundraiser which is under my target.To account for this, ask yourself if you are under charging guests. It ispossible you will not sell as many tickets as you expect to.

Let’s take the previous example. Your fundraiser sold 175 tickets but, instead of $25 per ticket, you charged guests $30 per ticket which is a 20% raise. At this amount, if you sold the same amount of tickets, you would earn $5250. Subtract from this your total expenses ($1500) and your net profit would be $3750 which is $250 over your target amount.

When pricing tickets you want to choose an amount that ensures you will meet your goals but will not discourage guests from attending. If you are worried about ticket sales, remember there are other ways to generate revenue at a fundraiser.

Other RevenueGenerators

When generating revenue, casino fundraiser do not need to be restricted to ticket sales only. One or more of the following channels can generate revenue:

Table Sponsorship

Table sponsorship is an excellent strategy to distribute the total cost of the event and reduce the overall amount you payout.Hosts can organize sponsors into different levels giving each business or individual achance of participating in the fundraiser. For example a High Roller sponsorship would sponsora table for $200 and in return would receive $500 in starting chips instead of the normal $100 thatguests receive at the start of theevent.The non-profit organization is giving the individual additional casino chips which costs it nothing and in essence are cashing in on an advanced re-buy from the guest. The sponsor gets more chips to play with and advertising. Plus the donation is a tax write off for them since the organization would bea registered non-profit.In the end, table sponsorship gives businesses and individuals an amazingopportunity to get public recognition and benefits the non-profit’s cause.

Re-Buys

Re-buys can be a huge part of acasino fundraisers. When guests run out of playing chips they have the ability to purchase morefrom the host organization. This increases the total revenue and gives players another chance at the casino tables. There are many factors that affect re-buys, such the affluence of guests, but if done correctly, they can count for a large amount of revenue. One of thekey factors is to make sure guests don’t start with a high amount of chips or else re-buys will never occur. Every fundraiser is different but we recommend guests don’t start off with more than $100-$200 each. The only setback to re-buys is that theynever guaranteed. Think of them asa nice bonus for your casino fundraiser.

Drink Sales

How Do Casino Hosts Make Money Fast

If you are going to give guests the full Vegas Casino experience, then offering them drinks is a must? Adding beverages to the mix is a great way to liven up the party. Also, don’t expect every person at your fundraiser to be playing at the tables. Plan for them to be walking aroundand socializing with one another.

How Do Casino Hosts Make Money At Home

Food

Having food at any party is a must and party hosts have a lot of options with this area. You can charge guests for the dinner and earn revenue from this which ultimately adds to the event’stotal profit. You can include dinner for every guest and charge per plate instead of per person. You can cater the event. In the end, when it comes to food at your fundraiser, the goal is to use it as a way of increasing your total revenue and thus, your total profit.

How Do Casino Hosts Make Money Using

Auctions

How Do Casino Hosts Make Money Free

Auctions are something that can be fun for anyone attending your event. This gives guests an alternative activity to playingat the casino table and another opportunity to engage in the festivities.