Home » VT News » FMLife: MGM Cuts Comps For Low Rollers

FMLife: MGM Cuts Comps For Low Rollers

By Chuckmonster on Thursday, 5th May 2011 4:06pm
  » filed under Las Vegas  comments: 12


MGM Resorts CEO Jim Murren

During yesterday's earnings call MGM Resorts International CEO Jim Murren told investors that the implementation of M life has resulted in notable cost savings for the company.

We've been able to see a meaningful reduction in promotional expenses, particularly at the lower tiers of our program and still increase our slot revenue and our margins are improving.

Translated from Project Manager speak, this means that through M life they've gotten more of us low rolling knuckleheads to play their slots, made more money and given out less comps than they did before, resulting in higher profits and cost savings for the company. This proves our post about How M life Is Putting The Screw To You.

Fellow Vegas Gangster Jeff Simpson pointed out on the Twitter that this is very similar to what Venetian/Palazzo honcho Sheldon Adelson said when he announced that Club Grazie had cut comps to all but their higher players.

Yay progress!

Tagged: m life   murren   mgm resorts international   comp clubs   


Comments & Discussion:

odd.. i now have a offer on mlife for 3 comp nights at mgm. previously i onnly had offers for the even crappier places (nyny/luxor/...)

pretty vague.

my uninformed impression was that V/P was going wynn route in terms of NO comps unless youre hitting a reasonably high minimum.

We need special edition VT Fmlife shirts.

I can't say this is a surprise, it's just in years past we wouldn't have heard about this. MGM was fairly aggressive (although less then LVS in my opinion) in working to keep occupancy up. There are still low period occupancy levels that are coming up as offers for what they would consider their lowest level gambling tiers.

I can only imagine this helps CET properties though in the long run on the strip.

A quick analysis of LVS' latest occupancy and casino revenue clearly indicates (at least to me) that it isn't working.

This seems like a really stupid announcement for them to make. Why would any average joe or average jane NOT want to play at a CET property now?

CET should capitalize off of this. Really push their comps. Maybe something like "Lose your shirt, get some free breakfast". Or, "Cockroaches aren't as bad when the room is free!" (applicable to IP only)

I did get a much better offer than ever, almost 9 nights comp in 2 bedr.penth.suite, although we do gamble more than average certainly no high rollers. Do spend a lot of money on restaurants, shows and clubs/pools...maybe thats it.

I, too, am getting better offers, and I'm solidly in the "pearl/low-rent" tier. He may be talking about budgetary savings elsewhere in their promotional area, like fewer paper mailings (I've gotten almost nothing by snail mail), reduction in staff, or consolidation of promotional efforts through MLife. It used to be "every property for itself," which must have been expensive and inefficient.

I have found the Mlife offers to be better than the old Players Club ones

I'm still trying to figure out how I actually made it to Gold based on their system, but after having 10-20 3 night offers with some minimum freeplay and occasional food comps for about 2 years. I'm down to about 5 offers, one of which is aria's three day occupancy offer, and 2 are 'market' offers which are basically just email discount rates that just happen to be Mlife offers rather then across the board marketing blast. 2 other offers are MC for 2 weeknights and the standard MB one night offer I've received for about 3 years.

I, too, fit into the higher 3/4 of the pearl necklace category and have recently been getting multiple comp night offers at Aria and MGM. The Aria offer includes $100 in freeplay and 2for1 for Viva Elvis. I'd say that those are pretty good offers for a VP schlub like me.
(*It is interesting that I usually stay at the Mirage and haven't been getting as many offers at that property. At least I think it's interesting.

or is this stuff from MGM just investor talk?

Comments Are Closed

Subscribe via RSS

Recent Comments:

michigan2010 posted: "MGM equals cookie cutter casino. No to reason to step foot in Bellagio again. Just hope they don't screw up..."
» Sayonara Bellagio Table Game Canopies...
saharalv posted: "I wish the editors were the entire electoral college in 2016...."
» Introducing the Trippies Class of...
fatbastard posted: "So many people letting a billionaire live rent free in their heads. Funny. Too bad it also detracts from the..."
» Introducing the Trippies Class of...
wpsteel66 posted: "Total bummer…talk about taking the class and uniqueness away from the Bellagio…another smart move on CEO Jim and making all..."
» Sayonara Bellagio Table Game Canopies...
damania posted: "Is there a podcast?..."
» Introducing the Trippies Class of...

» More Comments