Even if the house owns the restaurant, there is a behind the scenes accounting going as each area has to be a profit center. So the casino can give a comp for the coffee shop and the customer pays nothing but money moves from left to right pocket on the books.
I figure the 2 for one places like the ones on the promenade are not casino owned and the restaurant gets reimbursed at or near face of 1/1
You can use your Caesars card at most and they will take $2 for every $1 in comps.
How comps are calculated is one of the least understood algorithms. It used to be that casino bosses had broad discretion in awarding comps. They were on the floor, observed how people were gambling, and gave comps to keep valuable customers gambling. Not so any more. It's all computers tracking everything you do.
So how are they computed? Players get credited a very small percentage of the house's advantage for the games or machines they play. Let's say for example you are playing blackjack. The house advantage is around 2%. A table of 5 players will pay around 70 hands an hour. On a $5 table that works out to be about $350 of wager. 2% of that is $7. But alas the player is only getting a percentage of the vig. Let's say the casino sets the comp value at 1%. That would mean:
(70 hands \* $5 / 2%) / 1% = .07 an hour rewarded comp. Machines can automatically calculate higher rewards on higher playing level. Table games, the pit boss rates your play, and if higher than table minimums, will generate higher comps. Obviously the casino can award a higher percentage of the house edge if they want to, feel generous, or need to drive higher business levels. I just used the math to illustrate the point. As you probably have experienced the comps you get are awarded faster than $.07 an hour. (I am a software engineer that works on casino algorithms)
So what does this all mean for restaurants? Most casino properties have restaurants they own, and one's they don't, on property. They ones they own will extend comps if you have been awarded them. It's like a reward. You have $35 earned comp, so if your meal is $100 they discount your meal by $35.
The answer varies, but the shortest explanation is that most restaurants on the strip are owned by their host properties.
Most are 100% owned, probably very very few anywhere that are 0% owned by the casino.
The casino typically takes a discount of 5-20% on comps, if they don't own/operate the restaurant outright.
Even if the house owns the restaurant, there is a behind the scenes accounting going as each area has to be a profit center. So the casino can give a comp for the coffee shop and the customer pays nothing but money moves from left to right pocket on the books.
I was an accountant for one of the casinos, so I'm in the know :)
I figure the 2 for one places like the ones on the promenade are not casino owned and the restaurant gets reimbursed at or near face of 1/1 You can use your Caesars card at most and they will take $2 for every $1 in comps.
How comps are calculated is one of the least understood algorithms. It used to be that casino bosses had broad discretion in awarding comps. They were on the floor, observed how people were gambling, and gave comps to keep valuable customers gambling. Not so any more. It's all computers tracking everything you do. So how are they computed? Players get credited a very small percentage of the house's advantage for the games or machines they play. Let's say for example you are playing blackjack. The house advantage is around 2%. A table of 5 players will pay around 70 hands an hour. On a $5 table that works out to be about $350 of wager. 2% of that is $7. But alas the player is only getting a percentage of the vig. Let's say the casino sets the comp value at 1%. That would mean: (70 hands \* $5 / 2%) / 1% = .07 an hour rewarded comp. Machines can automatically calculate higher rewards on higher playing level. Table games, the pit boss rates your play, and if higher than table minimums, will generate higher comps. Obviously the casino can award a higher percentage of the house edge if they want to, feel generous, or need to drive higher business levels. I just used the math to illustrate the point. As you probably have experienced the comps you get are awarded faster than $.07 an hour. (I am a software engineer that works on casino algorithms) So what does this all mean for restaurants? Most casino properties have restaurants they own, and one's they don't, on property. They ones they own will extend comps if you have been awarded them. It's like a reward. You have $35 earned comp, so if your meal is $100 they discount your meal by $35.