Issue
Management attributed a recent increase in slot activity to the expansion of the free-play and comp program, which was said to be re-engaging lapsed players. The growth appeared broad-based, which made the trend more convincing at first review, not less. With coin-in rising, a corresponding increase in non-gaming revenue was anticipated. Instead, non-gaming revenue remained flat.
Findings
Segmenting coin-in by funding source, cash and ticket-in versus free-play redemption, showed that free-play-funded wagering accounted for a substantial share of the growth. This activity, along with unusually high free-play redemption and low cash buy-in on the same visits, was concentrated among a small set of accounts receiving free-play offers well above the tier their carded play would ordinarily justify. Cross-referencing offer amounts against each player’s rated theoretical value traced the pattern to discretionary free-play grants issued outside the program’s normal guidelines by a small number of hosts.
Solution
The findings were presented to ownership with a recommendation to strengthen internal control procedures around free-play issuance, including a cap on discretionary free-play authority, secondary approval above a defined threshold, and routine reconciliation of offers issued against each player’s rated theoretical value. Ownership was also advised to require theoretical win and cash buy-in as standard companion metrics alongside coin-in and visit-count reporting, so that program performance is measured against actual cash economics rather than volume alone.