I am speculating that casino management may have no special animosity against VP players, but simple economics may dictating current moves by MS.
I believe the casinos pay the state of Connecticut 25% of their gross profit from machines.
Assume,for analysis purposes, that a PE machine yields 2% gross profit, considering less that optimum play and some short coin play. Also assume that the handle is $2,000 per hour, yielding $40 per hour gross profit.
As for expenses, I have assumed general overhead (facilities, insurance, personal, etc.) to be 1% of gross revenues and interest, depreciation and amortization of capital costs to be .5%.
I have assumed the followings costs directly associated with the play per hour: liquor- $1; attendants-$1; promotions (free play, etc.) - $3; lounge expence-2$. If .3% points were given, I have assumed a cost of .25% (value being less than $ for $ plus costs of administration.)
Thus the profit per hour of such play would be as follows:
Gross profit $40
Expenses:
State of CT $10
General overhead $20
Interest, etc. $10
Direct expenses $7
Points $5
Total Expenses $52
Net Profit (loss) ($12)
The above #s are based on estimates and speculation only, and are submitted for your correction and discussion purposes. I have not considered sources of profit associated with the play such as slot playing family and other facilities use. Nevertheless, the loss leader cost may too great in this theoretical example.
[If there are any management lurkers out there, feel free to email me with better numbers, I will respect your privacy.]