Years ago video poker players
could stay ahead of the game
by choosing full pay deuces
wild (100.76%) or even 9/7
Jacks or Better (100.80%) in
one of several Nevada casinos.
Life was good. Nowadays you
can still have an advantage,
but you’ll have to combine
borderline paytables with a
mixed bag of cash and non-cash
benefits to compute your
expected return (ER). You’ll
widen the ledge on the razor’s
edge once you learn a
chess-like and tricky new
amusement, the video poker
comps game. It’s a real
challenge, since just when you
know all the mercurial rules,
they change.
Vocabulary:
Comps: Short for
complimentary or free.
Theo: Short for theoretical
and it represents the casino’s
advantage over the player.
Advantage Player (AP): Players
who accurately play the best
games available in a casino.
RFB: A casino rating that
allows free room, food and
beverages.
RFBL: A rating that allows
free room food and name-brand
liquor.
Marketing Offer: Mailed to you
in order to get more people
into the casino, usually
during slow times. Make sure
you read the fine print so you
understand the requirements.
Casino Host: An individual who
assists high rollers or
frequent players with comps
and booking a room.
Discretionary Comps: The best
ones, since you don’t lose
points from your slot club
account, so named because they
are at the discretion of your
casino host.
Stand Alone Machines: Video
poker devices with just one
game.
Multi-Game Machines: Video
poker devices with several
games.
Free Play: Indirect form of
cash, since you’re given free
credits on a machine (slot or
video poker) and sometimes
required to run it through
once before converting to
cash.
Theo for Comps: Most casinos
multiply the casino’s
advantage times your coin in
times the casino’s comp rate
to determine your dollar value
for comps. (See MWG&T archives
for more details). For
example, if the casino has a
5% advantage and you have
wagered a total of $8,000,
then their theoretical win is
$400 (.05x $8,000= $400). If
their comp rate is 10%, then
you’ll receive $40 worth of
comps ($400x10= $40).
Best Comp Situations
Casinos are getting
sophisticated about both
comping and awarding cash to
players. That’s why you’ll
want to consider the best
deals available to you before
selecting both a game and a
machine. There is a difference
between stand alone machines,
where the ER is clear and
multi-game devices, where the
ER may be averaged. Also,
casinos use the reset value
instead of the progressive
value to determine comps.
Stand-Alone Versus
Multi-Game Machines
If you’re able to find a game
with a positive ER, like Full
Pay Deuces Wild (FPDW) or 10/7
Bonus Poker (10/7BP), then
always choose a multi-game
over a stand alone machine.
Here’s why. Most casinos take
an average of the ER for the
game when determining comps,
and if you play the game with
the best ER, you’ll be getting
comps at a higher rate. The
greater the disparity between
the game you choose and the
other options, the better. For
example, if you find 7/5 Jacks
or Better (7/5 JOB, 96.15%) on
the same device as Not-So-Ugly
Deuces (NSUD, 99.73%) then
choose NSUD. You’ll get higher
comps than you would on a
stand alone machine since they
average all the ERs on the
machine. On the other hand, if
you find a stand alone FPDW
you probably will get reduced
or no cash back and comps.
Progressives
Some games aren’t even worth
playing unless they’re
progressives and the royal is
high. An example is 8/5 JOB
(97.30%) with an 8,000 coin
royal progressive (99.59%).
The good news in this
situation is your cash back
and comps will be computed as
though the ER was 97.3%
instead of 99.59%. Example:
Let’s say you wager a total of
$10,000, and the casino’s comp
rate is 20%. You should get
$8.20 worth of comps
(100%-99.59% = .41%), nothing
to write home about. (.41% x
$10,000 = .0041x $10,000 =
$41; $41x.20 = $8.20).
Actually, this is fair since
the casino expects to only
make a $41 profit off your
play. The actual comp rate in
this case is much higher, it’s
$54. (. 027 x $10,000 = $270 x
.20 = $54). Long story short
is that you would get over six
times the comp rate by
choosing a progressive.
Choosing a Good Game
If you want to build comps at
a casino, the best way is to
play games that have a low
volatility and high ER. The
games I recommend usually slip
through the cracks, when it
comes to reducing the cash
back or comps. This is
especially true when you find
a version close to, but less
than, 100% ER and on a
multi-game device as explained
in the previous section.
Here are some specific games
that fit the bill.
9/6 JOB: You can ride this
game for a long time, building
up both cash back and comps as
you go. That’s because it’s
easy to play and you have a
low risk of running out of
bankroll. You’ll be able to
get an inflated theo by
increasing your total wager
and more so by increasing the
casino’s perceived advantage,
as opposed to actual advantage
(previous section) on this
game. Not only is it available
in both Midwest and Nevada
casinos, but also in higher
denominations. If you’re
playing at a Harrah’s owned
property, there are many, you
can even earn special
privileges by playing 9/6 JOB
for “Diamond in a Day.” (Go to
Harrah’s website for more
information). Progressive
versions, available in some
casinos, are even a better
deal.
Stud Poker: This game deals
four cards and you have the
option of doubling your bet
before you see the fifth card.
Because your odds of receiving
a high final hand are
diminished, since you’re not
able to draw replacement
cards, lower ranked hands
receive higher paybacks. For
example, normally you’d need a
pair of jacks or better to
receive even money, because
after the initial deal you can
draw from 0 to 5 replacement
cards. In stud poker you only
receive a total of 5 cards,
that’s four on the deal, then
a chance to double your bet,
and finally the last of the
five cards. You’ll receive a
return of your wager with a
pair of nines or higher.
If you have a sure-thing, like
a pair of nines or higher,
before the fifth card, of
course you double your wager.
This means you’ll have
inflated wagers and earn
inflated comps. If it’s a
Coast property, like the
Orleans in Las Vegas, you’re
paid cash and comps on
coin-out rather than coin-in.
Great deal, because even money
bets are counted as wins and
the amount is doubled on
sure-thing bets.
NSUD: This game is sometimes
awarded full comps and cash
and sometimes not. You should
always check with the slot
club beforehand so you’re not
disappointed. Make sure you
indicate the machines in
question rather than the game
name, since the slot club
staff probably never heard of
NSUD. (See MWG&T archives for
paytable).
Maximizing Comps: Whether
you’re playing video poker,
slots or table games, there
are some things you can do to
maximize your comps. After
all, why use comps
unnecessarily? Discretionary
Comps: You’ll want to find
ways to use these since
they’re not subtracted from
your comp account. Since rules
differ from casino to casino,
and sometimes change even at
the same casino, make sure you
know the system in the places
where you are a frequent
player.
Upgrading Your Room: Always
ask when you check in, if you
can upgrade your room. Usually
there’s no charge if your room
has been comped and there’s a
better room available. You can
also ask for a room with a
safe, they’re usually more
upscale, at check-in.
Charging to Room: It’s a good
idea to charge meals, show
tickets and other expenses to
your room during your stay.
Ask your casino host if
they’ll comp anything before
you check out. If you’ve
played enough they usually
will comp some or all of your
expenses. What about your
earned comps? Use them for the
gift shop (when allowed) or
something else that is
unlikely to be eligible for a
discretionary comp.
Learn the Ropes: One of the
most important things is to
know the rules inside and out.
Purging Accounts: Some casinos
have a policy of erasing all
earned comps and even cash
after a specified amount of
time. Ask at the slot club and
make sure you take your cash
and use your comps before
they’re purged.
Using Comps for Bingo and
Tournaments: A good way to
convert comps to cash is to
use them for tournament entry
fees or bingo packets, some
casinos allow it and some
don’t. Any tournament that
pays cash is a good use of
comps.
Fine Print: Offers from
casinos typically include
exclusions and exceptions in
fine print. Not only should
you read carefully, but you
should also ask questions so
you’re not disappointed later.
For example, if you’re offered
3X points then you need to
find the rate that will be
used. Sometimes casinos lower
the rate for promotions or
exclude certain machines.
Marketing Offers: It’s always
good to use marketing offers
rather than your comp account.
They come from a different
department and they’re
designed to attract new
customers, that translates to
not losing points from your
comp account.
Newspaper Ads: If you live
near your favorite casino,
you’ll often find coupons for
cash, comps or promotional
gifts in your local newspaper.
Don’t be shy about using
these.
Other Venues: Marketing comps
can be found in publications,
casino newsletters, online and
elsewhere. It’s always better
to use these offers and save
your comps for something else.
Locals Versus Out-of-Towners:
Some comps are only offered to
locals. Once upon a time this
mostly applied to Nevada, but
now Midwest casinos are
sending some outstanding
mailers to those with nearby
addresses.
Snowbirds: If you live in
gambling towns part-time, then
it’s a good idea to give your
local address when you join a
slot club. That way you’ll
qualify for things like
multiple points that may not
be available to non-residents.
Comp Differences: If you’re a
local look for comps that are
useful. You may not need free
rooms if you live nearby, so
find a casino that offers
trips, shows or something else
that you want.
Use it or Lose It: Sometimes
expiration rules apply only to
locals. For example, you must
use at least some of your comp
points within 30 days at the
Wynn in Las Vegas if you’re a
local. Other casinos have food
comps that expire at the end
of your visit. The Ramada in
Laughlin used to have that
policy. Make sure you check,
especially if you’ve played a
lot.
Tax Considerations: Most comps
are not subject to state and
federal taxation, like
gambling winnings, however,
there are some exceptions.
1099 versus W-2G: There are
still many gray areas when it
comes to gambling and taxes.
If you’re in a tournament and
win either cash or a prize
greater than or equal to $600,
depending on the casino, you
may be issued a 1099 or W-2G
that you’re asked to sign; a
matching copy goes to the IRS.
There’s really no national
standard so policies vary from
casino-to-casino. On federal
returns you can definitely
write off your losses against
your winnings, but a 1099 is
in the questionable zone. If
you had to play to be
eligible, then you’re more
likely to be able to write off
1099 money or prizes, but if
it’s a drawing open to the
public you may not be able to
write-off losses.
That’s why, if you win
something like a car, then you
may be better off selecting
the cash amount, which will be
less. In other words if the
car is valued at $25,000 you’d
have to pay taxes on the full
value without the ability to
write-off losses. If you took
the cash, then the casino
would offer less than $25,000,
say $20,000. You’d then have
to claim the $20,000, again
without the write-off. Of
course if it’s a VIP contest,
requiring play to be eligible,
then you could probably
write-off the prize value to
the extent of losses. If the
casino is vacillating, then
opt for the W-2G.
Cashback: Some locals allow
cash to accumulate on their
slot club cards, a slush fund
so they can play when they’re
low on cash. Try to keep the
amount less than $1,200 on the
outside chance that you’re
issued an unnecessary W-2G.
Also, never withdraw $1,200 or
more at once, if you’re
playing for high stakes and
your cash is over this amount.
That’s because slot staff may
issue a W-2G at this level and
you may end up in a squabble.
State Taxation: Some states
allow write-offs to the extent
of winnings, just like the
federal forms, and others
don’t. Laws and policies
differ from state to state as
well as casino to casino, so
it’s best to find out the
procedure on comps, cash and
promotions. If you’re from out
of state, file a return for a
refund on any money that is
deducted from cash due. The
only time this won’t work is
if you’re playing in a state
like Mississippi where the tax
is for “gambling” not for
“income.”
Final Thoughts: Casinos told
my friend Chuck that his
product would never fly with
the public. He was persistent,
Chuck kept returning after
countless rejections until
somebody finally said okay,
we’ll buy some of your wares
and see how it goes. Other
casinos fell just like dominos
after tapping the first in
line, one after the other,
they bought his product. Like
Mary and her lamb, once an
idea works for one casino,
it’s a place where other
casinos are sure to go. Given
this corporate mindset, it’s
advantageous to know the ever-
changing trends in the comps
game so you can follow the
rules and win the prize. Oh,
the product Chuck was peddling
was a plastic slot machine
card; originally the casino
brass claimed nobody in their
right mind would give personal
information to a casino!
— Linda Boyd turned to the
more profitable game of video
poker after years of playing
blackjack and live poker. Boyd
spent many years as a
mathematics educator, a career
that proved invaluable in
helping her design the
statistical tactics featured
in her book, “The Video Poker
Edge.” Free strategy cards are
included with her book.
Purchase at
www.squareonepublishers.com.
