Casino Lawsuit

``Harrah's spent thousands of hours and millions of dollars to become the only casino company with a national player-recognition and tiered loyalty-card program,'' said Gary Loveman, Harrah's president and chief operating officer.

This statement outlines why Harrah's Entertainment, Inc. lodged a complaint on Friday July 13th, against a rival casino operator; Station Casinos, Inc. Harrah's alleged that parts of the customer loyalty program offered by Station's violate Harrah's patents. Harrah's implemented the Total Gold Program a few years ago that links all of its properties in 17 nationwide markets. This allows players to earn comps at any of Harrah's 21 casinos and spend them at another casino. By doing this Harrah's became the first casino to offer a national slot club.

In April 1999 Station Casinos began its "Boarding Pass" program. This program linked all of Stations Casino properties together and allowed players to spend club points at any of the properties owned by Stations. Harrah's has taken an interest in this program and is suing the rival casino company for patent infringement. Jack Taylor, spokesman for Stations Casino, would not comment on the case, stating he had not seen the lawsuit.

Usually when people hear about a lawsuit involving a casino they think, "Oh yeah, another player lost his shirt and is trying to get back some money". The case that Harrah's has filed makes it the first time a casino company has been sued over their comp program.

The outcome of the case could affect other comp programs put in place at several different casinos. Many casinos offer their players the use of cashing in comps at any of their locations. It is very convenient to be able to visit many different casinos and use one account to play.

Station Casinos has been buying properties at many of the casinos in Las Vegas. They have purchased the Santa Fe, The Reserve and The Fiesta over the last year. Could their success be a perceived threat to Harrah's? Would that be the reason that it took Harrah's over two years to file a suit if they believed they had been wronged?

Most casino players would like to see the major gaming corporations put a national player's club into effect. This would provide benefits not only to the players but the corporations could generate income through new sources too. They would build customer confidence and loyalty by allowing players to cash in comps at any casino.

Article provided by: Rhonda Andersen