I see that some others have brought the tax consequences of
redeeming the cashback already...I drafted this a couple of hours
ago...so please forgive the redundancy reagrding tax impacts.
I was barred from the El Cortez for an entirely different reason
than vegasvpplayer. I later found out from a very reliable source
that mine was a result of their system showing that I pulled my
player's card out of the reader over 30 times in a short time
period. The El Cortez assumed that I was pulling the card when I was
dealt a pat hand, in an attempt to hide some of the larger wins from
their tracking system.
While I have done that practice in the past, but just on dealt quads
or higher, I was not doing it at the El Cortez. I was playing on a
multiple point day, they were going through a tracking system
conversion at the time and the triple points were not registering.
Also, there were gift cards or gas cards for payouts over $200 and
the slot personnel pulled the card to get your name and number to
put on the paperwork. The El Cortez assumed the reason was to hide
winnings, and this coupled with the fact that I only played there on
multiple point days, was enough for them to give me the boot.
In any event there are a number of lessons to be learned from
vegasvpplayer and my experiences:
Card Pulling
Ten or fifteen years ago, the players card tracking systems were not
sophisticated enough to keep separate counts on how often one pulled
his card. By pulling one's card on a dealt quad, you were able to
hide your winnings from the casino and, if you used year-end
statements from the casino as supporting documentation for your
gambling diary for the IRS, you were able to hide winnings from them
as well.
There was a promotion a few years ago at the Riviera, where you were
reimbursed for losses. I did not participate and I'm not sure of the
details, but by pulling the player's card with any dealt paying
hand, even a single pair, it did not register as a win in their
tracking system, and inflated the player's losses.
Today's player tracking systems are more technologically
sophisticated and the casinos are more aware of the "tricks of the
trade" used by advanced AP and VP players. The Palms just upgraded
their system so that now you cannot download your free play and pull
the card before playing any hands (to keep your coin-in per visit
average at a particular level). The message "carded session in
progress" now shows on the display.
Casino Comfort Levels
Back in my blackjack counting/playing days, you developed a sense
for the tolerance levels of the various casinos you played.
Some "joints" had a zero tolerance level for even a 1-2 spread
the
Barbary Coast comes to mind. Others tolerated an exact 1-2.9 spread.
The Frontier, back in the early 1990's when there was a labor
dispute allowed this spread. They dealt a single deck game with
double after split, stand on all 17s, so the game was slightly
positive off the top. If you tripled your bet, they would shuffle
up. So the counters would increase their bets to just under the
threshold amount. The pit knew what was going on, but management
simply wanted their business, given the picket line out front.
Hiding chips was a skill that needed to be learned and implemented.
A good "act" went a long way in keeping the welcome mat on the door.
Now the game is video poker and we have to learn tolerance levels
all over again. Obviously the mega resorts will have higher
tolerance levels, but their VP offerings are pretty limited.
The local properties have different tolerance levels. Remember about
a year ago when the Suncoast threw out some $5 players? How about
the Orleans with its intolerant Slot Director? The Fiestas are at
the other end of the spectrum.
Cash Back
On of the posters offered the opinion that there is no reason
to "stockpile" the cashback. Let me offer the following scenario
There is a high limit player who adheres to the IRS regulations. He
(or she) faithfully keeps a contemporaneous diary of his play and
includes the cashback in his overall wins and losses. He doesn't
redeem the cashback until he sees how his year is going. Lets say
our hero is having a good year and is ahead $60,000 in mid-December
and has another $10,000 in accumulated cashback at various casinos.
Redeeming the $10K in cashback would increase his "income" by
$10,000 and the marginal tax rate on the additional $10,000 may be
around 33%. In effect, he'll be losing $3,333.
Next year may not go as well and redeeming the cashback then will
not trigger the same tax consequences.
Redeeming cashback for the small to medium players is usually a no-
brainer, but there may be other considerations to take into account.
Don the Dentist