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MGM, Ameristar strike marketing deal
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LAS VEGAS REVIEW-JOURNAL
A gaming expert said a strategic marketing relationship announced Wednesday between MGM Resorts International and Ameristar Casinos to share player data systems signifies the wave of the future.
Under the agreement, customers of MGM Resorts, which has 10 casinos on the Strip, and customers of Ameristar, which operates regional casinos in six markets, can use their points and rewards at either companies' properties.
For example, a loyal customer at Ameristar St. Charles outside St. Louis could earn enough points and rewards to redeem for a few nights at Aria, the centerpiece of MGM Resorts' CityCenter development.
MGM's program is called M Life, while Ameristar operates the Star Awards/Plateau Players Club. The sharing program will begin in mid-March.
David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas, said the deal lets both companies expand their customer databases at low cost.
In the days before the recession, Schwartz said, MGM Resorts would have just acquired Ameristar.
"For MGM, it's cheap way of expanding their market," Schwartz said. "Rather than spending $3 billion to buy Ameristar, they have entered into a partnership. It's a smart approach."
Last year Wynn Resorts Ltd. entered a similar agreement with Pinnacle Entertainment to share customers databases and rewards programs.
Schwartz said other gaming companies would explore similar deals.
MGM Resorts has similar agreements with the Foxwoods Casino in Connecticut, where a hotel is named MGM Grand Foxwoods, and with nightlife operator SBE Entertainment, which opened the Hyde Lounge in Bellagio on New Year's Eve.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
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Mr. Schwartz recession or no recession MGM could not have afforded Ameristar at $3 billion. It appears one needs legal counsel prior to joining the MGM players club. Just take a look at the MGM on site agreement, the terms and conditions are unreadable and would make a lawyer's head spin--the print is near the size of a grain of sand. I don't know, it may have an opt in or opt out strategic marketing alliance clause. Some players will not want their personal data and/or playing history shared with a third party. I would think MGM would be legally obligated to seek consent from each players card member. MGM may argue they have done so; however, using microscopic print for the terms and conditions is clearly a slick ,yet, legally questionable form of contractual trickery. Unfortunately, that is the nature of the gambling industry.
@Joe.Johnston,,, I agree with you, I cannot see how Ameristar working with the MGM in a marketing deal will benefit Ameristar and the gaming company not end up but being screwed by the MGM. Unfortunately, corporate in Ameristar is more interested in Philanthropy supporting causes toward rehabilitation of spinal cord injuries and diseases more than gaming. I’m not suggesting Ameristar change their interest, only have a greater respect for their people and their business that helps them support their causes. While this is honorable and really a great cause, too many of the upper corporate management seem elitist, looking down at their people operating the casinos. Most of their corporate management, if not all, has zero gaming experience but do seem capable enough to hire competent people with enough experience to run their properties. It’s this corporate elitist degrading attitude that can be demoralizing to their employees but I am receiving this info second hand, although from a number of employees from several properties. I really hope Ameristar isn’t screwed by a more ruthless corporation. Even believing corporate Ameristar could possibly be elitist, I haven’t seen them as ruthless or dishonest at all.
What a bunch of suckers Ameristar is. MGM cannot be trusted and are only in it for themselves. They will milk the Ameristar teats dry.