Megaclub Merger Update (Sort of)
Plan on spending your unused points by next spring
By Jeffrey Compton
As you can imagine, I am hounded every day by players, writers and casino operators (including those who work for the companies involved) who ask if I have heard anything regarding the merger of the Harrah’s/Caesars or MGM/Mirage/Mandalay clubs. For the most part there has been no action and little gossip. But here is what I have heard:
The MGM/Mirage/Mandalay merger is moving along (according to two marketing execs at different properties; they are receiving continual updates), but it will probably be early 2006 before the players actually see any tangible proof. From what I hear, the current plans do call for the final products to have Mandalay Resort One Club-style comp accounts—however, there is no final word yet, so I would plan on using any unused dollars by spring 2006 at the latest. It was nice to hear (twice) this comment: “We want to make sure that the final product reflects the best from both clubs.”
On to Harrah’s/Caesars! According to an article in one of the local gaming rags (which quoted an obvious Harrah’s press person as a confidential inside source—holy Deep Throat!), Harrah’s will continue to run the Connection Club (Caesars), Horseshoe Club (Binion’s) and Total Rewards separately till at least early 2006. Although there will be some possible crossover offers (for example, Horseshoe folks getting special room rates at Caesars Palace and Paris), the three programs will be operated separately.
There are probably two reasons for the delay—one is software/hardware/database issues, and the other is that the waters have not totally calmed, especially from the Harrah’s/Caesars merger. For example, as we go to press, there are rumors that Harrah’s will be buying an additional casino on the Mississippi Gulf Coast and selling off two other properties in the area.
A final tidbit—a well-connected friend of mine has questioned my prediction that Harrah’s will eliminate the current same-day cashback programs at Caesars’ properties. “Even before Harrah’s bought Caesars,” he said, “there was already considerable discussion about not offering same-day cashback in certain markets, so the company is learning that they have to adapt the Total Rewards product to specific market conditions.”
That statement does make considerable sense, especially when combined with another observation made by a high-roller friend of mine who plays at both Harrah’s Las Vegas and Harrah’s Laughlin. “According to corporate Total Rewards policy,” observed my friend, “you have to use up all your Reward Credits [Harrah’s term for points] before you can get an additional discretionary comp through the hosts. In Laughlin, that is true. You do have to use up your points first (though they do send out a lot of room offers through direct mail, so you almost never use your Reward Credits for rooms anyway). However, in Las Vegas, the hosts can write discretionary comps to almost any qualified player regardless of if he has used his Reward Credits.” Both he and I agreed that the competitive host-driven Las Vegas market has forced Harrah’s Las Vegas (and the Rio) to make on-property policy changes.
One final word on this: I have heard more than one player tell me that they are keeping large amounts of cashback in their accounts so that they “look good” during the merger process and thus get better offers. Not! Offers are based on your play (and somewhat on your geographic location), not how much cashback you have in the account. My earlier advice stands. Unless you live less than 10 miles from a casino, redeem as much cashback as you can from your account every time you leave, or at least once a month. And always clean out accounts before you leave Las Vegas. You never know what can happen in your life that could prevent your return for a year or more, and then you could lose all of your accumulated benefits.
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