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Harrah's to Honor Accidentally Mailed Coupons

22 November 2005

JOLIET, Illinois – As reported by the Chicago Herald News: "A $6 million mistake might bankrupt a small business. But when you're the world's largest gaming company, even a costly error can be absorbed.

"Harrah's Joliet Casino and Hotel is making good on coupons worth $525 in cash that were mailed last week to some 11,000 regular customers. The total value of the coupons is about $5.8 million, and it remains unclear exactly how the promotion went awry.

"The company says its direct-marketing vendor is responsible for the error, but won't say whether insurance will cover the losses or whether it will pursue legal action against the vendor.

"…For now, the company is focusing on rebuilding good will among its many regular customers, some of whom were peeved when Harrah's initially refused to redeem the coupons on Friday. Then the Illinois Gaming Board ordered Harrah's to honor all of the $525 vouchers, even though far fewer should have been sent out.

"The gaming board said this is likely the most costly promotional mistake in the state's 13-year-old casino industry. Casino operators must obtain approval from state regulators every time they conduct a promotion, gaming board spokesman Gene O'Shea said on Monday…"

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