Why free drinks and hotel rooms are worth less than you think
Why free drinks and hotel rooms are worth less than you think.
Casinos offer comps: free drinks, free meals, free hotel rooms, free shows. These comps are designed to make you feel like the casino is giving you something for free. But they're not.
The comps are calculated based on your expected loss. If the casino expects you to lose $500, they might give you $50 in comps. They're not losing money on the comps. They're just giving you back a small fraction of what they expect to take from you.
This is why comps are so dangerous. They create the illusion that you're getting a good deal. You're getting free stuff. The casino is being generous. But the casino is just using the comps to keep you playing longer so they can take more money from you.
The best strategy is to ignore the comps. Don't let them influence your decision to play or how long you play. Treat them as a bonus if you get them, but don't chase them. Because the moment you're chasing comps, you're playing with the casino's interests in mind, not your own.