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Casinos, Customers Benefit from Club Programs

13 November 2001

BARONA INDIAN RESERVATION, California –– As reported by the San Diego Union-Tribune: "It's easy to spot the 70 percent of casino patrons here who are members of Club Barona. They're tethered to the slots.

"At the end of clip-on cords they have magnetic-striped cards inserted in the machines. While they gamble they're accruing points that can be redeemed for meals, gift-shop goodies, even cash rebates.

"Just about every casino from Atlantic City to El Cajon has such a program: Pala Privileges. Pauma Palm Club. Viejas VIP Rewards. But the casinos aren't giving something for nothing. What they get in return is almost as valuable as money shoved into the machines.

"…Who their gamblers are. Where they live. What they play. How much they bet, win and lose. How often they come, and how long they stay.

"This helps the casinos tailor and market themselves to specific targets. In a cash-driven industry that's getting more competitive all the time, customer information is the ultimate edge.

"…The aim is to keep your players on your system.

"…Anthony Curtis, a Las Vegas publisher and industry observer, considers a rewards club `an extremely good bargain for the player.'

"`I've never seen a valid reason for putting a nickel in a machine without a club card inserted,' he said. `Any single thing they give you, even if it's one free beer, is a net positive.'

"In the long run, of course, the house usually wins.

"…Las Vegas analysts say Barona's tracking system is one of the most advanced in the industry. And, it's about to get a lot more powerful.

"Barona's technical consulting firm, Venture Catalyst, is creating a super-database called a `data warehouse.'

"…The enhanced system, which is taking six engineers four months to program, will vastly expand Barona's data-storage capacity…"

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