Which Casino First Offered Comps and Was First To Be Corporate Owned?

Which casino was the first to offer comps and the first to offer comped liquor. And what casino was the first to be owned by a publicly traded corparation? Did they immediately offer comped drinks?

In the earliest days of wide-open casino gambling in Nevada, comps were basically unknown. Essentially, there was no need for them, since competition was limited and there was plenty of business to go around.

But that started to change when two brothers, Harold and Raymond Smith Jr., opened a one-room card club on Virginia Street in the heart of downtown Reno. The Smiths, including their father Raymond, better known as "Pappy," brought their experience in the carnival business to the fledgling gambling town. They opened Harold's Club in 1935 and immediately launched a scheme to improve the shady image of casinos and gambling, and by implication of Reno and Harold's Club, with a nationwide advertising campaign via the famous Harold's Club or Bust billboards. The Smiths also introduced revolutionary concepts to the newly legal casino gambling, such as eye-in-the-sky catwalks for game protection, female dealers, restaurants that served decent cheap food, casino credit, and junkets.

Harold's Club was also the first casino to serve free drinks to anyone gambling, watering them down sufficiently to minimize the loss-leader hit to the bottom line. In the early days, Harold's Club was the largest seller of alcohol in the U.S., so they could well afford the free diluted alcohol. From free drinks, Harold's Club extended comps to include food and transportation.

The whole strategy of extending conspicuous generosity to players was so successful that it became standard casino operating procedure and developed into the comp system that, in general, we know today.

The first publicly traded company to buy a Las Vegas hotel-casino was Hilton Hotels Corporation, which purchased the Flamingo from Kirk Kerkorian in 1970. This was made possible by the Nevada Corporate Gaming Act of 1967 (in a nod to Howard Hughes). It allowed corporations with thousands of shareholders to own casinos, removing the previous requirement for detailed background checks on all shareholders of licensed entities.

And yes, they all offered comped drinks to players from day one. As we've seen, that had been the casino standard for decades already and not even corporations beholden to shareholders dared buck that trend.

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Henry Aug-05-2025

Del Webb Corp owned the Sahara & Mint in 1961

I think this is the real answer here. Del Webb Corp bought Sahara & Mint in 1961, becoming the first public company to own casinos.

sunny78 Aug-21-2025

agreement

Looks like AI engine Grok agrees with QOD answer:

"The first casino owned by a publicly traded corporation was the International Hotel in Las Vegas, opened in July 1969 by Kirk Kerkorian. It was acquired by the Hilton Hotel Corporation in 1970, marking the first time a publicly owned conglomerate took control of a Las Vegas casino."

Donzack Aug-21-2025

Rate of play

Video poker bars have a light to show the bartender if the player is worthy of a comped drink. I was just wondering if that will hit the floor alerting the cocktail waitress of a higher rate of play. I  was in Reno and noticed people putting money in a bar machine, getting a drink and walking away.

jstewa22 Aug-21-2025

What about Binions Horseshoe?

I had always heard that Benny Binion came up with the idea of comping alcohol to players.  Not true?

O2bnVegas Aug-21-2025

Harolds or Bust

Somehow I recall an advertising symbol for Harolds, a cartoon guy wearing a wooden barrel held up by suspenders, maybe to signify the "or Bust" part.  

On the other hand I may be making that up.  Late 1980's or so.  

Candy

Sandra Ritter Aug-21-2025

Got My Answer

This question made me wonder, which casino started the Players Club. Instead of asking, I thought why not google, which is what I often think regarding questions here. Well wouldn't you know it brought me to the answer via a QoD dated 8/4/2023. If anyone is interested it was the Atlantic City Sands in 1982 (which happens to be the first year I found not one but 2 VP machines at the Riviera and when my addiction began). The first Las Vegas casino was the Golden Nugget.

grouch Aug-21-2025

eye in rhe sky

you mentioned the eye in the sky. with all the cameras now days is there still eye in the sky in yes just curious

Michael Zidik Aug-21-2025

Sands Casino

I recall the Sands Casino in Atlantic City was reported to have the first formal players club card.

John Dulley Aug-21-2025

Binions

Like said above I thought binions and the horseshoe started the free drinks.

Kathy Aug-21-2025

Drinks for play

I first encountered red lights for drinks at the Golden Nugget years ago. Sunset Sation is another. I don't visit those bars, just because the casino shouldn't be able to tell me how fast I have to play to get a comped drink! The bartenders know who the steady players are.

Jonathan Byron Aug-21-2025

Harold's Club

It sounds like Harold's Club was a real innovator in the casino industry, and this is the first I've heard of it.  I know it's not Vegas, but it's Vegas-adjacent, so how about a QoD on the history of Harold's Club and its contributions to today's casino industry?

Question of the Day - 21 August 2025

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