Caesars shares fall

[Nash]

http://www.reviewjournal.com/busines...ebt-talks-fail

[Alan Mendelson]

It seems from the article that there will be no quick settlement of the Caesars bankruptcy. By the same token, it appears it will be business as usual for a period of months until something does happen. I hope business as usual means no surprises in Total Rewards and hopefully they won't tighten offers even more than they already have.

[Dan Druff]

I think they will tighten offers, but they won't make outright shocking changes to TR, such as zeroing people's RCs. That would be like cutting off your head because you have chronic headaches. They realize their TR program is what brings a lot of people to their casinos, so they aren't going to completely trash it just to save money.

I think they will make cuts in less quantifiable ways, such as decreased offers, less generous RFB comps, etc. We are already seeing some signs of that, such as the change in cash advance reimbursement policies and stingier comps.

I also think the decrease in post-150k rewards was a result of this, though I think that part was stupid, as it just discourages continued play past 150k tiers.

[Rob.Singer]

Why do you think the TR program pulls tons of gamblers in, when every gaming forums and publication continuously demolishes the program for going downhill?

I believe CET is in serious, serious trouble, and unexpected things will happen that will alienate TR members even further. Not for at least four months though.

[Dan Druff]

The answer is "Great marketing".

That's always been CET's strength.

[Alan Mendelson]

One thing you have to remember is that a small percentage of players ever get more than 150-thousand tier points. And while those who do reach 150K might not be inclined to add tier points they are already "committed gamblers."

And those who aren't at 150K will still be attracted to the goal of 150K.