Caesars to Cut Comps to Pay for Employee Raises

U.S. based gambling firm Caesars Entertainment announced that they're going to be reducing the comps that they offer to players in order to help fund increases in wages for their employees.

The announcement was made during a financial call with corporate shareholders, detailing the methods for how the group will work to increase employee wages. The comps are a lucrative way to draw in loyal customers, but now those perks won't be as large. Caesars is lowering the amount that they'll give out for resort stays and free food, two of the most common rewards for players who frequent the casinos.

Casino employees in spots such as Las Vegas have been fighting for higher wages for years. In 2018 workers at most of the major casinos in Sin City nearly went on strike to ask for higher wages and safety on the job. Clearly, Caesars is listening to help comply with these demands, but this is certainly an interesting way to pay for those wages.

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barbadosslim93's picture
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3 May 2019 - 5:15pm

I'm no financial genius, but this sounds incredibly stupid on Caesars' part. If you lower the comps, you'll probably lower the number of people coming back to gamble more. If they don't gamble more, they won't be contributing to your bottom line. If revenues fall, you're not going to be able to pay employee salary.

Surely they could found something else that wouldn't keep customers from coming in, right?


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3 May 2019 - 7:54pm

Yeah..I think that's a valid point you raising there Dustin.

I was about to say that this is a noble act from Caesars...and generally carrying of your employees should be considered as such...right?

But why this have to be for the players expense even when it's about some extras being cut off?

I'm sure the company makes enough money and could afford to raise the employees wages from it's own pocket...or they just doing that being tired of the workers moaning and preventing a future problems of this kind..?!? Thinking

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7 May 2019 - 12:47pm

Yeah, I also think that it is not a good idea. Most of land casinos are giving comps like 0.1 or lower.
So, only some big rollers are getting the benefits.

We don't know how much the total comp payout, though.

What if they raise the comps two times? Wouldn't it be a good news for more gamblers? Joking
Just a thought.

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14 May 2019 - 1:55am

I would have thought fewer players would impact the tips that employees would receive. I'm hoping they ran the numbers properly so that the employees are actually going to get a pay increase, if their base pay just goes up a small amount but then they lose out on tips they might be worse off.


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