How do Las Vegas casino hosts get paid? Do they just receive a salary? Is their compensation in any way based on my amount played? Is their compensation based on the number of players they bring to the casino?
A few independent or freelance hosts steer high rollers to one or more casinos with which they have contracts. Since they're independent contractors, they're not paid a salary; rather, they earn a commission from the casino, usually based on the losses of the players they bring in.
For example, if a freelance host brings Mr. A to the Hats and Horns Casino and Mr. A loses $200,000, the host gets a percentage (let's say, 6%) of Mr. A's loss -- as soon as he pays up. So the host makes $12,000 for that trip. And any time Mr. A shows up at the Hats and Horns afterwards, his host collects on the losses. If Mr. A wins, the host makes nothing. So he's rooting for his player to tank in a big way.
Sometimes an independent host's remuneration is based on his player's overall action. This is known as the "theoretical," "theo" for short. The formula here is the average bet multiplied by the time played multiplied by the house advantage. Say Mr. B plays baccarat at $10,000 a hand for one hour at (in round numbers) a 1% disadvantage. His theoretical loss is $5,000 ($10,000 X 50 hands X 1%). The host might make 12% of that, or $600.
Here, it doesn't matter if the player wins or loses. That's why it's called the theoretical: The host's remuneration is based on the mathematical expectation of Mr. B's play. Now the host doesn't care if his player wins or loses. He just wants him to sit at the table for 48 hours straight. He's making (a theoretical) $600 every hour that he plays baccarat for $10,000 a hand. But being human, the host probably roots for him to win.
In addition, some indie hosts also earn a commission on retail -- in other words, what their players spend in the hotel for rooms, meals, shows, clubs, spa, etc. For the retail part of their deal at these casinos, they're more like a travel agent than a casino host.
Most casino hosts, however, aren't freelancers. Instead, they’re salaried employees.
Some casino companies don't pay their hosts any bonuses, commissions, percentages, or incentives at all. However, many do, usually quarterly or annually. Where bonuses are shelled out, what they’re based on can vary considerably. Usually, each host is paid an individual merit bonus, dependent perhaps on the amount of play of his customers, or the number of room nights occupied by players who are "coded" to him, or the play of new customers that he brings in to the casino.
Other times, a host's bonus can be based on the actual losses of his players.
A few casino companies work more on the team concept and host bonuses are based on the success of the whole player-representative department in reaching corporate goals.
One thing’s for sure. The top casino host positions, whether contractors or employees, are among the best-paid in the casino.
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