“ The ‘ pro ’ is that free play is the single most productive tool in the history of casino marketing ; the ‘ con ’ is that careless , unmonitored awarding of free play is an exorbitant expense and a colossal waste of money . You could also call it ‘ good free play vs . bad free play .’”
— Buddy Frank , Owner , Slot Strategies and former longtime casino executive
THE PROS AND CONS
Most operators feel that free play , managed appropriately , is here to stay as a positive promotional tool . “ Free slot play is generally worth the promotional expense , provided it ’ s strategically managed ,” says Joyce .
“ When used correctly , it drives player engagement , increases true frequency , and enhances customer loyalty . But like any promotional expense , it must be carefully structured into your ROI programs . Free slot play is probably one of the most valuable tools for that , so I think we ’ re going to continue to see its use down the road .”
Free play also has become an absolutely essential tool in competitive markets — Live ! Philadelphia , for instance , competes with nearby properties including Rivers Casino Philadelphia , Harrah ’ s Philadelphia , Valley Forge Casino and Parx , all less than a half-hour drive from each other .
“ How you use free play in terms of differentiation among your competitors is critical if you ’ re in a highly competitive environment ,” Joyce says . “ And as it relates to us , we pulled back our free slot play 20 percent last year , and we still grew our slot coin-in by 6 percent . Free slot play generates more coin-in , so it ’ s very unusual to drop 20 percent in free play and grow coin-in at the same time .
“ That doesn ’ t mean we reduced our reinvestment , it just means we reduced our free slot play . We might have used other things like comps , coupons , hotel stays , dining offers and so forth as part of our entire mix of the reinvestment pie . We were able to capture an additional 1 percent in market share over that same 12 months .”
The reinvestment mix , including the use of free play , differs according to the market , adds Birtha , who currently operates in the competitive Northern California market and has worked in similarly competitive markets in Las Vegas , Atlantic City , Tucson and Ohio .
“ I think it matters whether or not you ’ re in a competitive marketplace ,” Birtha says . “ Northern California is definitely a competitive marketplace , and so free play becomes one tool that I think guests are looking at as an entitlement , because it ’ s been around so long .
“ In Northern California , we ’ ve all come to the realization that by all means , free play is an acceptable reinvestment if it ’ s used effectively . And that ’ s a big if , of course . I think it definitely varies by marketplace . It depends on the regulatory and tax environment that you might be in .
“ Certain marketplaces clearly look at it differently . Some include ( free play ) in their tax calculations ; some allow you to do certain amounts and
not do certain amounts , or have limits based upon the marketplace and the regulatory environment . So that ’ s always a factor that needs to be evaluated in terms of whether you use free play or some other promotional allowancetype product .”
The level of competitiveness in the market also determines how much of a reinvestment is made in free play , Birtha adds .
“ It ’ s been around for quite a long time and it ’ s an expectation , and then it just becomes a matter of how much of your overall marketing spend and reinvestment that free play qualifies and quantifies into , because again , typically the more competitive the market you ’ re in , the higher your reinvestment is probably going to be .”
Another factor , he adds , is the knowledge inherent in the player base . Birtha says when he worked in Cleveland from 2014 to 2018 , the market was relatively new , “ so free play wasn ’ t as much of an amenity , per se , as I ’ ve seen it in other markets where gaming has been around 30 , 40 , 50 years or more ... Then , it just tends to be a much more normal marketing tool that we use to be competitive and to give our guests what they want — and most importantly , that we are reinvesting at the appropriate amount from a bottom-line perspective .”
For the player , one negative effect of the free play phenomenon is its effect on slot hold , particularly in tourist markets like the Las Vegas Strip . “ If I have a theoretical hold of 8 percent and I ’ m only holding 6.5 percent because of all the free play that marketing is dumping into the system , what do I do as a slot director ?” says Klebanow . “ I change the PARs on the machines or buy machines with a higher hold to compensate for the amount of free play being dumped into the system .”
“ No matter where free play is used , it does have an effect on hold ,” says Joyce . “ Casinos that issue a lot more free slot play tend to tighten their floor to offset to offset that reinvestment ... That being said , though , it ’ s not something that ’ s talked about at the property level , at least not for us . We tend to use free slot play more according to what kind of player you are . If you ’ re a slot-dominant player , you ’ re going to receive free slot play .”
“ It depends on your management philosophy ,” says Birtha . “ It depends on the competitiveness of the market , and on the tax rates .
Every operator subjectively needs to answer that ( slot hold ) question depending on the criteria that are in front of them to operate their facility competitively and to meet the guest needs .”
20 Global Gaming Business MARCH 2025