Sunday December 8,2013 : MOUNTAIN OUT OF A MOLEHILL?
Concerns over Caesar's "cannibalism" warning assuaged.
A standard stock exchange legal caveat made by a US gambling group launching in New Jersey's new online gambling market was seized upon and blown out of all proportion by the mainstream media this week, but has now been put into perspective.
Caesars Entertainment filed a standard advisory notice with the SEC advising:
“Online gaming may reduce customer visitation and spending in our traditional casinos in Nevada and New Jersey, which could have an adverse impact on our business and operations. Our Atlantic City properties may be further impacted because all casino games will be permitted online.”
Gary Thompson, a Caesars spokesman, put the advisory into perspective late in the week, explaining that it was standard procedure and was included among other possible risk factors to investors for purely legal reasons.
Other general and typical "risk factors" that the company was required to list included another economic downturn, a terrorist attack, or war, Thompson told the Associated Press news agency.
"While it's a legal requirement to include language such as this among potential risk factors, our experience has been that opening new channels to reach potential new customers and offer them the benefits of our Total Rewards program has not caused visitation declines," Thompson noted.
Land operators like Caesars are in a position to offer online punters a wider range of inducements and promotions than is typical in the industry, AP points out, advising that Atlantic City casinos have already been offering comps to new online players, such as free hotel rooms, meals or show tickets to get them to visit the brick-and-mortar operation as well.
The publication Atlantic City Insiders suggests that players can maximise their opportunities at earning casino comps by picking one casino and staying with it.