Although it managed to generate substantial profits upon its opening, Plainridge Park Casino has been suffering a five-month revenue downfall. However, it announced it was about to remedy the situation and confirmed it was ready for a spring rebound.
Yet, the long-awaited jump in sales might not deliver satisfactory long-term results given the strategy the casino has adopted. The promotional giveaways are believed to do more harm than good as they lure players without actually encouraging them to become regular Plainridge Park Casino customers.
The intensive advertising campaign led to the necessity of spending 20% more on drawing players’ attention. Meanwhile, Plainridge’s main competitors – the two Connecticut- based tribal casinos, spend significantly smaller amounts on giving free play credits.
Up to now, Plainridge officials have achieved the expected results and revenues were boosted indeed. Nevertheless, market analysts remain sceptical that the adopted strategy is to have a positive effect in the long run. They recommend the casino to use a different approach as the free play can only have a short-term impact on the revenue.
The free play strategy is actually intended to motivate players to engage in casino games and in most cases casinos quickly bring their investment back. However, according to industry experts, the effectiveness of the free play strategy is controversial as many players take advantage of the free credits without using their own funds. They are no longer interested in playing casino games once the promotional offer ends.
Back in January, Plainridge revenue saw an increase of 11%, which means the casino managed to generate $2 for every $1 handed out to players for free play.
However, the February results were not as satisfactory as January’s, which was a vivid example of the inadequacy of the free play campaign to ensure a stable long-term income. According to released reports, the casino spent $2.4 million in “free play” credits in February, which is 85% more as compared to the amount spent in December 2015.
Penn National, the company that runs Plainridge Park Casino, said that the free play strategy was a common practice for enticing players and it has matched their expectations so far. They have even planned to enhance their loyalty program and ensure better long-term revenues.
MassGaming representatives remained tight-lipped as to how effective the free credits were towards boosting the revenue.
In previous financial reports, it was stated exactly how much the free play offer contributed to the monthly revenue but this information has been purposefully omitted in the report for March. Casino officials said that revealing such details puts them in quite an unfavourable position and might intensify the competition.
