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![\"Scott](\"https:\/\/www.casino.org\/vitalvegas\/wp-content\/uploads\/2021\/07\/author-logo-lg-88x88.png\"){kind=logo}
<\/a>\n <\/div>\n\n By Scott Roeben<\/a>, on April 05 2024 <\/span><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
Our friends at Fontainebleau are making some changes to their loyalty club. Shocker, not in a good way.<\/p>\n
The struggling but drop-dead gorgeous resort sent Fontainebleau Rewards members an e-mail that started with the phrase, \u201cFor added simplicity and transparency\u2026\u201d It\u2019s well known anything that follows that phrase tends to be bad news.<\/p>\n
For example, \u201cFor added simplicity and transparency, while you only have a tumor in one testicle, we\u2019re removing both, just to be on the safe side.\u201d<\/p>\n Anyway, here\u2019s the rest of the message from Fontainebleau: \u201cFor added simplicity and transparency, we are making some changes to Fontainebleau Rewards. Beginning on May 1, 2024, at 8 a.m., you will earn Play Points to accumulate as slot free credits based on the following calculation methods: Slots, 1 Play Point for every $5 of coin-in; Video poker, 1 Play Point for every $10 of coin-in.\u201d<\/p>\n Free play is awesome, and one of the perks of loyalty. Casinos aren\u2019t obligated to give players anything back, but free play is a way to keep guests returning again and again.<\/p>\n That said, it\u2019s useful to compare the changes to the original calculation methods<\/a>.<\/p>\n Previously, calculations were made thusly: Players earned two points for every $1 of rated play on both slots and video poker.<\/p>\n We are not a math person, but according to our calculations, that means the new program is 900% worse for slots players and 1,900% worse for video poker players.<\/p>\n That\u2019s right. For $1,000 of coin-in, video players get $1 in free play.<\/p>\n On the bright side, Fontainebleau assures, \u201cThe redemption value of Play Points will remain unchanged: 100 Play Points = $1 Slot Free Credit.\u201d<\/p>\n So, the subtext.<\/p>\n It\u2019s a little awkward.<\/p>\n This tightening of the belt means a couple of things.<\/p>\n It means Fontainebleau made a major miscalculation when it opened, namely that its loyalty club was \u201ctoo generous.\u201d This shouldn\u2019t come as a huge surprise as Fontainebleau has never operated a casino before.<\/p>\n What it also means is the struggle is real, and Fontainebleau is making moves to try and bolster its revenue. That\u2019s due to pressure from the top, Jeffrey Soffer, \u00a0Chairman and Chief Executive Officer of Fontainebleau Development. Soffer, in turn, is getting pressure from Koch Industries, the folks who helped pay for the resort, in addition to a $2.2 billion construction loan.<\/p>\n The change in the loyalty club seems to be a painful but necessary adjustment, and it gives the appearance of increasing revenue (give back less for play, margins are higher). The problem is such loyalty club incentives are what build, well, loyalty. Perks and freebies are an integral part of casino marketing. Trimming down the perks is a short-term solution to a much bigger problem.<\/p>\n Multiple problems, really: Fontainebleau is in a challenging location (there\u2019s no foot traffic), the company has no casino database to speak of, and also has no hotel partner (hotel partners come with massive marketing databases).<\/p>\n Along with the firing and resignations of a dozen top executives<\/a>, Fontainebleau is getting a reality check, with few signs there\u2019s a plan to overcome those seemingly insurmountable obstacles to success.<\/p>\n Hint: It\u2019s not effective outdoor advertising, all due respect.<\/p>\n Advertising 101 QoD: If you saw this billboard, what would you think Fontainebleau is? pic.twitter.com\/uV0sNLrWWi<\/a><\/p>\n \u2014 Vital Vegas (@VitalVegas) April 1, 2024<\/a><\/p>\n<\/blockquote>\n Fontainebleau recently hired a president, Maurice Wooden (formerly of Wynn Resorts), who is unlikely to be licensed by gaming regulators, and Fontainebleau has also been sued by Wynn Resorts<\/a> for poaching.<\/p>\n The drama is glorious.<\/p>\n We are a huge fan of Fontainebleau, but have had little luck gambling there. The restaurants<\/a> have been hit-and-miss. Don\u2019s Prime, for example, is one of the best steakhouses in the world. Mother Wolf was a disappointment (destination bread, but the restaurant seems to give its pasta a gentle kiss of warm water, pushing the acceptable limits of \u201cal dente\u201d). We have about 87 restaurants left to try at Fontainebleau, so stay tuned.<\/p>\n Fontainebleau\u2019s art is amazing, the bars are spectacular, as are the views from the resort\u2019s south-facing rooms.<\/p>\n Fontainebleau appears to falling into the belt-tightening trap. Odd, given the fact it doesn\u2019t have to start servicing its debt until mid-2025. (The first two interest payments were pre-paid.)<\/p>\n We will forever be grateful Fontainebleau opened after sitting unfinished for 16 or so years.<\/p>\n We\u2019re rooting for Fontainebleau to slay. Cutting perks for players isn\u2019t the way we\u2019d recommend, but we are a layperson, so we\u2019ll see how this plays out<\/a>.<\/p>\n<\/p><\/div>\n![\"\"](\"https:\/\/www.casino.org\/vitalvegas\/wp-content\/uploads\/2024\/04\/fb_cactus-845x563.jpg\"\/)
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