Commercial
Comps
Definition
Complimentary goods and services given to players in proportion to their theoretical win: food, rooms, travel, event tickets and free play. The land-based ancestor of online bonusing.
Key takeaways
- Comps are complimentary goods and services awarded in proportion to theoretical win.
- The reinvestment rate is a percentage of theo, and the real cost to the property is below the retail value offered.
- Online deposit bonuses with wagering requirements are the same model with the arithmetic made explicit.
- Reinvestment schemes reward value without regard to its source, which is why regulators scrutinise incentives aimed at heavy play.
Why it matters
Comps are a rebate paid in kind. A casino calculates a player’s theoretical win, applies a reinvestment rate, commonly a modest percentage of theo, and issues that value as meals, accommodation, show tickets, transport or free play. Because the goods often cost the property less than their retail value, and because free play must be wagered before it becomes cash, the effective cost of a comp is lower than the number printed on the offer, which is precisely why the model has survived a century.
Two features make comps worth understanding beyond the casino floor. First, they are the direct ancestor of online bonusing: a deposit match with a wagering requirement is a comp with the arithmetic made explicit. Second, they are the mechanism regulators examine when they ask whether incentives are being targeted at customers showing signs of harm. Reinvestment models are indifferent by design to why a customer is valuable, so a scheme that rewards escalating play can pull hardest on exactly the accounts that should be receiving intervention instead. That tension, between reinvestment as ordinary marketing and reinvestment as a harm vector, is the live issue in both land-based and online loyalty design.
Frequently asked questions
How are comps calculated?
By applying a reinvestment rate to the player’s theoretical win. The higher the expected revenue from the play, the larger the comp entitlement.
Are comps free?
They are free at the point of use, but they are funded from the expected margin on the player’s activity, so they are better understood as a rebate in kind.
What is the online equivalent of a comp?
Loyalty rewards, deposit matches, free spins and cashback. The underlying reinvestment logic is identical, with wagering requirements standing in for the discount on retail value.