Go to Vegas and drop some money.  As soon as you’re losing money the casino will start treating you like a valued customer.  This is because, by losing money on gambling, you’re basically paying the casino to entertain you.  As a thank-you for your business you may be offered “comps,” which are complimentary items as a thank-you for you business.  Depending on how much money you burn, the comps could be anything from a free drink to a night in one of their hotel rooms.

It’s great getting treated link royalty.  Though I cannot speak from experience, Vegas hotels have the customer service thing figured out.  But as a smart customer, you should always keep in mind in the back of your head exactly why the casino is being so nice to you.  Is it because they really want to be your friend?  Is it because they live and die to please customers?  Or is it because you’re blowing through money faster than MC Hammer?

Always keep in mind that the free stuff you’re getting isn’t really free.  MBAs with spreadsheets calculate how much you need to lose to qualify for this stuff, and the house always wins.  Apparently, Terrance Watanabe does not understand how Vegas works.  Mr. Watanabe may have the biggest gambling problem on the planet.  In 2007, he burned through $127 million at two casinos.  Watanabe is known as a whale in the casino business.  They are high rollers lured into luxury and extravagance; the goal is to bring them in, treat them like royalty, and milk them like crazy.  Both casinos are owned by the same company, Harrah’s, and they derived 5.6% of their revenue in 2007 from him alone.  Ahab got his Moby Dick.

But this whale is fighting back.  He’s suing Harrahs’ claiming some of his losses were promised to be returned to him.  He was also promised a stipend for airfare to Vegas, Rolling Stones tickets, and other odds and ends.  It would seem Harrah’s backed out of these promises.

Watanabe is in some trouble with the law as well.  The casino loaned him almost $15 million to gamble with (fairly standard practice if you’re rich and your assets aren’t immediately liquid).  Watanabe hasn’t paid them back and faces prison time if convicted.

The Wall Street Journal has a good article about the guy, which includes how he became so wealthy (you’d never guess).  He’s awarded the 19th Weaky Award for being so stupid as to think the casinos were being his friend, so stupid as to burn through money because he was bored, and really friggin stupid for handing out stacks of $100 pretending to be some high roller who really deserves such treatment.  Regardless of how the criminal and civil suits turn out, I hope he loses and is thrown in prison for being such a moron with money.

Photo: lisa brewster

By The Weakonomist

The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice.

categories: business, personal finance, weaky