Money to Play: Why Casinos Are Willing To Credit VIP Customers With Millions?

Modern land-based casinos are on the hunt for VIP customers. To lure high rollers, they are offered more than just luxurious hotel rooms, top-quality steaks and unlimited spa treatments.

This practice has become so standard that without it, large players simply will not appear in the institution. As Dennis Gomez, a former manager of a Vegas casino, put it: "Having gaming tables obliges you to provide quick loans. Otherwise, the "whales" (players with big money) will not come to you."

Gomez also cited a case from 2010: a client lost $9 million, but ended up settling a debt of $7 million. When the management was outraged, Gomez reasonably objected that a discount of 20% (or even more) was a justified price. The choice was between losing the VIP client forever by trying to knock out the entire amount, or immediately receiving 7 million. The decision seems controversial, but the gambling business has its own laws.

"Free" money

In the old days, the system was simpler. The player could bring 2 million dollars in cash, leave an expensive car, villa or watch collection as a pledge and get a few more million "on top" for comfortable play. The main condition is timely return.

Today, in Vegas, the process has become more civilised. Most establishments operate through a specialised system called CentralCredit, which is (ironically) owned by former casino cashier Tod Earley.

This structure handles loan approvals, check cashing, and collecting big player reports across casinos.

The key feature is that the checks are dated after the fact. That is, the VIP receives the money now, and on paper the loan is issued after the game. This allows the client to immediately use the casino funds, keeping the entire operation in the strictest secrecy between him and the institution.

The mortgage will still be approved

The centralized system also brings benefits to the casino: the player will not be able to pull off a trick by taking 50 thousand dollars for the buy-in in five different Vegas establishments. He will simply be refused.

High rollers also benefit: information about these "markers" (game credits) does not leave the walls of the casino. They do not affect the credit history in any way and do not attract unnecessary attention from the authorities.

Of course, there is a risk of non-return ("hanging"). Nevada statistics for 2019 show that casinos have written off about $47 million in bad debts. However, this figure is less than one percent of total revenue. For the industry, these are nothing more than planned commercial expenses.

Not everyone agrees

However, this scheme does not work everywhere. Casinos owned by Indian tribes, for example, usually do not issue credit. Some other establishments in the United States also prefer not to take risks, deciding whether to give the next roulette lover "free" money.

Do not discount the reputational factor: very famous personalities are unlikely to openly ask for a loan, for fear of leaking rumors.

And yet, in the battle for the "whales", gambling houses are ready to do a lot, if only customers with fat wallets continue to play (and lose) with them.