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Thread: Risk of holding credits/comps/free-play in your account

  1. #1
    Original Founder
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    There is a risk of holding "reward credits" or comp rewards or free-play in your player club account. We all know there is risk -- but each of us values that risk differently.

    Right now there is the risk that Caesars will file for bankruptcy. Many of us believe that the risk that our Total Rewards benefits including "reward credits" are relatively secure. But what if they're not?

    When Caesars Palace was taken over by Harrah's Entertainment, my host at Caesars urged me to cash-in all of my "comp dollars" by making purchases in the Caesars Palace gift shops because he feared the comp dollars would become worthless once the Harrah's Total Rewards program took effect.

    I recall years ago when a Los Angeles poker casino went into bankruptcy, and an announcement was made on the casino floor that all chips in the possession of players were now worthless. I am not saying that would happen with a Caesars bankruptcy, however.

    My question is are you going to do anything differently with your "banked comps" (whether a small amount or a large amount) in the next month or so because of a possible Caesars bankruptcy?

    Will you redeem all of your comps, even if that means buying toothbrushes in the gift shops to use up the last of your reward credits?

    Or, will it be business as usual for you -- hoping that it will also be business as usual for Caesars even if a bankruptcy is filed in January as has been rumored?
    Alan Mendelson
    www.AlanBestBuys.com
    "(Alan) simply can't get past a die having six sides." -- Michael Shackleford May 12, 2015

  2. #2
    Senior Member
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    Although we do quite a bit of bankruptcy work, I'm not sure if these "comps" would be considered debt of Caesars and could be "discharged" in the bankruptcy.

    I will try to get some clarity on this.

    I was hoping to save my comps for a planned vegas trip in March.

  3. #3
    Original Founder
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    Regnis you just triggered a question about the legal obligation in the event of a bankruptcy. Please explain from the legal standpoint: do players have any claim against Caesars for the value of their comps or Total Rewards credits? Or are players totally at risk with no recourse?

    If you were hoping to save your comps for a planned Vegas trip in March, what are you plans now?
    Alan Mendelson
    www.AlanBestBuys.com
    "(Alan) simply can't get past a die having six sides." -- Michael Shackleford May 12, 2015

  4. #4
    I can answer this.

    You have no legal rights to comp points. They are considered promotional and can be revoked at any time for any reason. I actually have a friend who lost $6000 in MGM Comp points because they decided they had been overcomping a certain machine, and they retroactively took his points away. (Keep in mind that this was NOT a glitch, nor was my friend doing anything illegal/unethical.) He was also not banned from the property. He just lost his comp points.

    With that said, I have about $1700 of comp points left at CET, and I am not worried. While they can legally confiscate them, this would cause an uproar with the customer base and not be worth it.
    Check out my poker forum, and weekly internet radio show at http://pokerfraudalert.com

  5. #5
    Original Founder
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    Dan the problem might be with the creditors. What if they demanded an end to Total Rewards as part of a restructuring? What if a bankruptcy judge sided with those creditors and said Caesars was too generous with comps?

    I've said all along that I think TR is safe. What if I'm wrong... and you're wrong?
    Alan Mendelson
    www.AlanBestBuys.com
    "(Alan) simply can't get past a die having six sides." -- Michael Shackleford May 12, 2015

  6. #6
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    I have about $1200 and I am treating them as business as usual. In fact, I will reach my 200,000 tier points this week at New Orleans and I fully expect to use the $500 folio in the future. If the stuff hits the fan, then that was just a gamble I lost. Not the first time nor will it be the last.

  7. #7
    Originally Posted by carolinajacket View Post
    I have about $1200 and I am treating them as business as usual. In fact, I will reach my 200,000 tier points this week at New Orleans and I fully expect to use the $500 folio in the future. If the stuff hits the fan, then that was just a gamble I lost. Not the first time nor will it be the last.
    That's exactly how I see it, except I won't be reaching 200k tier points this year!
    Check out my poker forum, and weekly internet radio show at http://pokerfraudalert.com

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