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    MGM Resorts rewards non-gamblers at casinos, too

    LAS VEGAS (AP) — The only way to get treated as a high roller in most casinos is by gambling big. But MGM Resorts International has expanded its loyalty program and a related website to reward customers for their spending on restaurants, shows and other items as well.

    The Las Vegas-based company hopes to keep customers from hopping to other resorts it doesn't own.

    At the enhanced "M life" website, MGM Resorts visitors can plan their trips and track the points they earn at 13 of the company's casino-resorts. Ten of the resorts are in Sin City, and the other three are in Mississippi and Michigan.

    Bill Hornbuckle, the company's chief marketing officer, said the company is letting customers directly book services at various resorts all in one place for the first time. With M life, a room at the Bellagio, a Cirque du Soleil show at the MGM Grand and dinner overlooking the Strip at the House of Blues Foundation Room all generate points toward freebies and personalized offers, and can all be booked at the same time.

    "It's the first time we've been able to bundle the totality of the company," Hornbuckle said.

    The enhanced offerings — which include things as outlandish as scuba diving in the aquarium at The Mirage or buying out the entire theater at Fantasy for a private showing of the Luxor's topless revue — are part of MGM Resorts' effort to learn more about its customers and keep them coming back.

    The company is hoping to catch up with competitor Caesars Entertainment Corp. in the use of this loyalty strategy.

    Caesars, which owns or manages more than 50 casinos in six countries, including 10 in Sin City, extended its Total Rewards program to include non-gambling spending in 2008. MGM Resorts revamped its program — which previously included just gambling, like those at other casino companies — about 18 months ago, but waited to phase in non-gambling spending.

    Hornbuckle said it's still too early to say how the changes are affecting MGM Resorts' revenue. But he said some customers have tripled their spending at MGM Resorts properties after learning that one company owned them and would recognize the spending with loyalty perks.

    "It's meaningful to the company," he said.

    Tourism in Las Vegas has improved since 2009, when the Great Recession sapped many gamblers of the funds for a visit. Over the past year, room rates have crept back up and companies are doing better.

    On Wednesday, MGM Resorts announced a deal with Ameristar Casinos to jointly market offers at their casinos. The much smaller Ameristar has eight casinos in smaller gambling markets including Colorado, Mississippi, Indiana and Iowa.

    Mark Strawn, an analyst for Morgan Stanley, said the agreement shows MGM Resorts is serious about marketing its Strip casinos together rather than separately and it could add $40 million to the company's earnings — if it reaches the right customers of Ameristar.

    "There tends to be a difference in the theoretical value of casino customers and the realized value," Strawn said.

    MGM Resorts spent about $15 million on technology to link its properties through M life. Scott Voeller, the company's vice president of brand strategy and advertising, said M life is convincing gamblers and other visitors to spend more by telling them exactly what it takes to achieve higher status in its program.

    The top tier, "Noir," requires 1 million tier credits — an amount reached with $40,000 in annual spending on things besides gambling or annual wagers. Voeller said roughly the top 1 percent of its customers make Noir status.

    Growth is faster among members spending $1,000 or more per year and earning "Pearl" status or higher, the company said. The program's lowest rung, for people spending less than $1,000, is "Sapphire" and includes about half of its members.

    MGM Resorts narrowed its loss in the third quarter to $123.8 million, or 25 cents per share. Its revenue jumped 43 percent, as gambling improved in Las Vegas and Macau. It plans to report its fourth-quarter and full-year 2011 results next week.

    ___

    Oskar Garcia can be reached at http://twitter.com/oskargarcia

     

    6 comments

    • James  •  3 mths ago
      How much was the author paid to write this for M.G.M.? Most casinos give you points for buying things. This is nothing new - just another advertisement.
    • JEN  •  3 mths ago
      They need to ban smokers so nonsmokers can come and spend money. Who would want to bring kids or friends to a lung cancer, smelly,smoking place. You can't breathe,kid will get sick after the visit,and come home smell like a homeless person. This is why we hate casino or any smoking places
      • J from Vallejo 3 mths ago
        Casinos are 21 and up anyways (some Indian casinos may still be 18 and over), casinos aren't meant for kids. In fact, Vegas is a terrible place to plan a family trip, unless all are adults. Smoking in public places, is slowly being phased out across America, i think in 20 years casinos will be one of the few places where one can smoke. I am not smoker myself, and hate the smell of smoke, but i understand the need to accomodate both smokers and non-smokers in the casinos. The ventilation systems in the Las Vegas Casinos and some of the larger, newer Indian Casinos is much better than it used to.
      • VA 3 mths ago
        stay home you with your brat kids. you sound like a killjoy anyways. and please don't have any more kids
    • cd-rr  •  San Diego, California  •  3 mths ago
      MGM if you want to bring more earnings, loosen your slots penny machine just like the indian casinos here in san diego ca. with minimum bets on the indian slots, we still win jackpots from 100 dollars to a thousand. All of las vegas slots penny machines are just like feeding a crocodile nothing in return.
    • Doctor Who  •  3 mths ago
      They have to figure out a way to attract me to Vegas, everytime I check on room pricing, it is always too steep for me to consider going, maybe they should give away houses with the slots, then I could afford to stay there.
      • VA 3 mths ago
        good don't come. more biatches for us!
    • GrammyD  •  Irvine, California  •  3 mths ago
      The smoking in the casinos is obnoxious and they do not extend many non smoking areas
      to people who do not want to choke to death on their smokers bad habits. I always used one of the casinos there because there was a non smoking area . This year it is no longer there. So bye bye Vegas i will go back to the indian casinos tha have non smoking areas
    • Michael  •  3 mths ago
      Last time I went to Vegas (2006) I was there for 3 days. I lost a total of $100 at different casinos. An occasional trip to Vegas is nice and I'll even do a little gambling but I'm not going to blow all my money there.
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