Wednesday, March 6, 2019

Las Vegas: Are comped drinks going the way of the Dodo?

Could be. On the Strip at least.

If you're not familiar with Vital Vegas, he's a Las Vegas resident, and employee of the Fremont Street Experience, who has a knack for getting inside information and scooping many major media outlets on Vegas news.

The program he's referring to (MGM 2020) has been in the media a LOT lately because it's led to early retirement for many top MGM execs. Under the radar however it's also leading to staffing cuts, specifically with the cocktail staff. (There's a reason the unions dug-in on automation in the last stand-off).

The idea is that "drink kiosks" will soon replace on-floor cocktail servers to a large degree and that the age of getting a "comped" (not free) drink while you're gambling will soon be a thing of the past. Not for your larger players, obviously, but for the rank-and-file penny slot player, also known as the most profitable players for casinos.

This is just another one of a thousand cuts that the average Las Vegas Strip casino patron is being asked to endure. From ever-increasing resort fees to paid parking to CNF fees (which add nothing of value) to the worst odds in the country, to sub-par customer service, to deteriorating properties and every price everywhere increasing hand over fist, the Las Vegas Strip is losing any advantage that it had over local, even tribal, casinos.

It's very clear that the public is already noticing.  Even during good economic times visitation in Las Vegas was down in 2018, for the 2nd consecutive year. Major trade groups are asking their convention operators to find different venues, the Rugby 7's, traditionally held in Las Vegas, may have played their last tournament there. The fact is that Las Vegas is becoming too expensive, and too greedy, to support tourism from the very people they are targeting.

While it's true that "comped" drinks were never free, the fact is relatively cheap food and drinks are what put Las Vegas on the map. The rush to faux luxury has been as foolhardy as has the introduction of 6:5 Blackjack or 3-zero Roulette. It's a travesty that doesn't play in the rest of the country, and it's destroying Las Vegas reputation as the Gambling capitol of the world.

The biggest risk is from California, whose residents now have access to Las Vegas style casino resorts just minutes from their homes. The draw in Vegas has always been comped rooms, drinks and food that differentiate it from the locals. Take that away and there's little reason for California residents to sit in heat and traffic for a weekend. Just visit your local and be done with it.

Another irony: Nevada gambling "handle" is rising, the Las Vegas Strip is seeing huge declines. People are starting to notice. They will certainly start to notice if MGM and Caesars (who is in the process of laying off 13% of it's cocktail staff) go after the comped drinks.

The loss of free parking was a kick in the gut to the locals, the loss of comped drinks is a kick in the gut to all patrons. I don't know about you but I'm getting tired of having MGM and CET shove two big middle-fingers in my face and then ask for my continued loyalty.  As much as I enjoy the Luxor pool in the Summer, it's getting close to the point that I look the lion in the eye and tell him to Eff off.

Fremont Street anyone?

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