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My Experience with Gaming — Part I of II

The Nevada Gaming Control Board is charged with, among other things, arbitrating disputes between patrons and casinos. I have known about them for years but have never had any direct dealings with them until recently. This blog is about my recent incident.

In many ways, it’s surprising that I’ve had no previous disputes. I know of video poker pros who have dealt with them dozens of times because they believe that the casinos are always trying to cheat them. Others I know regularly take an “it’s the principle of the thing” approach and seek redress for the smallest slights.

To me, there’s a cost associated with going to the GCB. Winning a decision can lead the casino to decide you’re a trouble maker and no longer welcome your action. And any employee involved in that decision may soon work for another casino causing your “unwelcome” to spread without further incident. So, to me, the GCB is going to be a last resort when I’m essentially “out the door” anyway and am concerned with how much I get to take out the door with me.

If it’s a big enough dispute, I’m probably going to talk with attorney Bob Nersesian for advice on how to proceed — or possibly even representing me. He’s knowledgeable enough and good enough that even after paying his fee I’ll be money ahead by letting him take care of it. While there are other attorneys I could call, he’s been on my podcast about two dozen times and we have a personal relationship.

But the case that led me to contact the GCB fell into the sweet spot in that it was large enough to fight over, I was not going to be able to play in the casino again whether I went to GCB or not, and it was too small to call in Nersesian. So, I did it myself.

Here’s what happened:

Someone told me the Rainbow casino in downtown Henderson had $5 NSU and some players were getting several hundred dollars a week in mailers. Since the game starts out at 99.73%, this was worth checking out. With any kind of a slot club at all, this was likely to be a positive play.

I never found the $5 machines. But I did find dollar five play machines where you could bet up to 20 coins per line. That is, I could bet $100 per play on a game where I probably had the edge.

The slot club remains a mystery to me. They have tier levels. You can redeem points for free play or cash, at different rates depending on your tier level. Therefore, I decided that I’d let my points stay unredeemed for a while because I would rather redeem them at the top rate instead of for only half that much. (It turned out I misunderstood the slot club — more about that later.) For August and September (the two months I played) there were 10x comp dollars on Sundays and Fridays.

The comp rate appeared to be a rather miniscule 0.033%, but 10x comps turns that into 0.33% and you add that to 99.73% and you’re very slightly positive. If you get mailers, this is a play.

Each royal was $16,000 (I never hit one of those), and each time I hit four deuces I earned $4,000. (I received several sets.) You also would get W2Gs for dealt quints ($1,600 — every 4,165 dealt hands) and dealt wild royals ($2,500 — every 5,415 hands).

Some of the $4,000 sets of deuces came with a lot more money. If I were dealt three deuces, for example, and connected on one of them, on each of the other four lines I’d get a quad ($80), straight flush ($200), quint ($320), or wild royal ($500). This happened several times.

The deal breaker was when I was dealt four deuces, a 54,144-to-1 hand that paid $20,000. I hit it shortly before Bonnie and I went on a month-long vacation. I hoped that staying away for a month would save my welcome.

Not to be. When I returned, my card wouldn’t work. No big surprise, really. But I had accumulated a number of points and if they were going to kick me out, I wanted my accumulated money before I left. In round numbers we were talking about $2,400.

I was told to call up Billy Paganetti, who owned the Peppermill in Reno as well as the Rainbow, and I could discuss this with him.

Being trespassed from a casino has been mentioned on at least 30 of our podcasts. I am very familiar with this concept. I was NOT trespassed. I was told I wasn’t welcome to play the machines, but I was not told that I was not welcome on the premises.

After a brief bit of phone tag, Mr. Paganetti cut to the chase and said that the slot club would have let me redeem $2,400 in free play had I actually collected it at the casino.  If I now wanted cash, it was only going to be $1,200 because I was at the Chairman level. Had I been at a lower level, it would only have been $800 in cash. He agreed to cut me a check for $1,200 and said I’d have it in the mail within a week.

I believed that I should get more. The boothlings (who were also cage workers) had not been informative about the slot club and I had just earned Chairman level. I believed (incorrectly, it turned out) that leaving my points in the club until I reached Chairman would allow me to redeem them at a higher rate. That would be true if I wanted cash. For free play, the redemption rate did not vary by tier level.

For a variety of reasons, I decided to take my beef to Gaming. I believed that I should have been able to transfer my points to somebody and let him play them off rather than be forced to accept the 50% rate. Mr. Paganetti said, “That’s your right and we’ll wait until we hear from Gaming before we cut the check.”

Next week I’ll explain more of what happened.

Before you head out to the Rainbow, it is my understanding that they have removed the NSU games. They have also removed two games returning more than NSU that I didn’t find. And I was not the only player booted. If you want to check it out anyway, knock yourself out.

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When the Rules are Not the Rules

The M Casino Resort is located along I-15 at the southern edge of the Las Vegas valley. The location was picked expecting the Southern Highlands development to explode, but that didn’t happen. The 2007 housing bubble hurt that development big time — and this casino as well.

I live about 8-10 miles from the casino, depending on whether I take the freeway or not. I know having a casino this close would be a luxury for many of my readers, but it’s actually too far away for me. Although I do drive and will drive, I do not particularly enjoy “spinning my wheels.” I much prefer playing at closer casinos if I can find suitable ones.

To make matters worse, it’s the kind of casino where you must come in and pick up your free play multiple times over the month. Sometimes up to 10 times.

For the past seven years or so, up until the end of 2016, I had a “special deal” at that casino. This consisted of me coming in once a month and doing all my play at one time. Usually the figure was $200,000 of coin-in played on a $10 single line 8/5 Bonus Poker machine.

In exchange for this, I received all my free play for the month in one lump sum and was guaranteed to receive 2x points (worth a total of 0.60%) each time I came in. If you included the free play and the benefits of being an ICON member (their highest tier), including a certain amount of food each month, this was sufficient to entice me to play there.

Although the arrangement evolved over time, for the last few years I was unwelcome at most drawings and invitational tournaments. The reason for this was that most tournaments included “second chance drawings” where players would play during the weekend event and, based on $5,000 coin-in for one drawing ticket, tickets would be drawn to give away money. The reason for the second chance drawing was to induce extra play out of the players. I was excluded from these drawings because the $200,000 I would play wouldn’t be extra play — it would just be normal monthly play. This would give me an unfair advantage, or so the managers believed.

In late 2010, the M was sold to Penn National Gaming, effective sometime in 2011, but the former owner, Anthony Marnell III, still had a management role. So, most of the special deals that were allowed when Marnell owned the place were still in effect. Eventually Marnell moved on to other opportunities and the new General Manager was a PNG employee with no ties at all to the way the casino was run in the past.

I was informed in November 2016 that my deal was going to end on December 31. I was still welcome to play but I would receive the normal mail for an ICON player — based on how much I continued to play. I would need to pick up my free play in whatever increments the other players got their free play and would be eligible to participate in tournaments and drawings should my play warrant it. If this wasn’t acceptable, I didn’t have to play there at all.

I appealed this decision to the GM, but to no avail. It took until about the end of January to get me back on all mailing lists. I had been manually excluded by the former Vice President of Marketing (because of my special deal), and each of those manual over-rides had to be found and removed.

For March, I decided to play on Thursday, March 2, primarily because there was a drawing on Friday, March 3. I figured my equity in the drawing would help make up for the inconvenience of having to travel to the casino so many times. According to an over-sized postcard I received in the mail, so long as my tickets to the drawing were activated prior to 7 p.m., I was in the drawing. So, I played more than $200,000, at a bigger-than-average loss, and activated my entries at 6:45 p.m.  Unfortunately, I was totally skunked in the drawing.

Since there were 75 names drawn and I probably had more tickets in the drum than anyone else, it was highly improbable that I didn’t get picked anywhere. A “top 10” finish was likely, I believed, with a decent shot at winning the $4,000 first prize. I didn’t think I was intentionally excluded from the drawing (although with the manual overrides the former VP of Marketing had instituted, it was possible that one forbidding me from participating in drawings was still inadvertently in effect). I thought the most likely explanation for me not being called was that they pulled the 75 names before my tickets were in the drum.

The following Tuesday I spoke to the man who was responsible for pulling the tickets the previous Friday evening. He told me he pulled them at 6:30 p.m., as he had been instructed to do. I asked him who told him to pull at 6:30 p.m., because that would be the first person I called — if I decided to follow up on this.

It was not clear that following up on this would yield good results. Using aphorisms, we can say the squeaky wheel gets the grease (which means I should definitely follow up on this), but we can also say the nail that sticks up is often hammered down (which means I should just let it go). Playing “aphorism roulette,” I decided to pursue this.

I left voicemail messages explaining what I wanted to talk about to two different Marketing Supervisors. Whether they were in town and received the messages or not, I don’t know, but they didn’t return my calls. So, I next directed a written email to Patrick Durkin, the Vice President of Marketing. I told him I didn’t want to go to the Gaming Control Board if I could avoid it, but I strongly felt I was short-changed.

He sent me a return email saying he would research the matter and get back to me by the end of the day. He did, although he said he preferred to talk face to face. We set up a meeting for the following week, but he also told me the written rules and the postcard sent in the mail had different information on it.

This was an unusual twist. The rules said to swipe before 6:30 p.m. and I didn’t read those rules until afterwards. The mailer — which included a LOT of detail including small print disclaimers — seemed to cover everything and contained what were certainly at least “pseudo rules.”

I hoped the casino wouldn’t argue that the written rules were the only relevant ones and the mailer wasn’t official. I’ve heard LOTS of strange arguments from casino employees through the years. I would just have to wait until the meeting.

I certainly didn’t know how the meeting would go. They could give me some free play. They could say “sorry Charlie.” Or they could restrict me in some minor or major way. I’ve seen variations of all of those. But I wasn’t going to get anything if I didn’t go to the meeting, so I went.

Insofar as the mailer went, I didn’t take it with me. I did, however, take an iPhone photo of both front and back and had that with me. (Years ago, some employees at the Suncoast, after it was purchased by Boyd, disputed that I had received a postcard invitation and asked to see it. I gave it to them and they took it into the back room. I never saw the postcard or them again. Since I couldn’t prove I received the postcard, the Suncoast’s official position was that I hadn’t received one. Although I didn’t think the M would operate in such a rinky dink fashion as the Suncoast, I wasn’t taking any chances.)

At the meeting with Mr. Durkin, he couldn’t have been more gracious. We chatted for 10 minutes or so — one professional to another. He had worked at several casinos over the years and I had played at many of them. We knew many of the same people. I am somewhat of a “special case” in the player community and he wanted to get to know me. He had only worked at the property for a few months and, although we had exchanged some emails and phone calls, we hadn’t met each other prior to our meeting.

When it came time to discuss whether I was going to receive any compensation for trusting the mailer, he told me the promotion had been designed by his predecessor, who now worked elsewhere. Although he and his staff checked the rules and the mailers, they missed the “6:30 vs 7:00” difference. Without admitting any error, he asked what would satisfy me. I, of course, would have preferred that he come up with a proposed amount of free play first. But at least we were finally talking turkey.

I won’t go into exactly how the negotiation to find the “right” number took place, but we came up with an amount of free play that both of us could live with. Maybe a better negotiator would have gotten more. Maybe some players would have gotten less. Being able to negotiate effectively when you have to is a player skill that is underrated.

I came away impressed with how Mr. Durkin handled this. He understood that his company had made a mistake and my grievance was legitimate — and he treated it as such. None of us can guarantee we will never make a mistake, but we can try and clean it up afterwards when we fall short. And that’s what Mr. Durkin did without giving away the store.

To my mind, the fact that I had lost a bit more than usual this time made it easier for him to award me free play. Had I hit a $40,000 royal flush and ended up considerably ahead on the play, it would have been more difficult for him to justify the additional payment to his bosses. So, you can be sure I mentioned my loss in the negotiation. Had I won during the play, he probably would have mentioned that.

While idealists can make a pretty good case that my results shouldn’t have mattered in this case, these things do matter. Thinking they don’t would be naïve.