Clarification sought on ‘comps’ awarded in race and sports books

Those free T-shirts and hats players get at the race and sports book when they bet on a big race like the Kentucky Derby?

Technically, it may not be legal for books to give them to players.

But race and sports books across the Las Vegas Valley routinely hand them out to customers placing wagers, so much so that it has become an accepted industry practice.

Now, a major operator in the race and sports book industry is seeking clarity on the regulations for complimentaries given away to encourage player loyalty.

A workshop meeting on proposed amendments to regulations is scheduled Thursday at 1:30 p.m. by the state Gaming Control Board at the board’s hearing room at the Sawyer Building.

The board will take testimony and consider whether an amendment to existing regulations is necessary.

The request for a hearing was submitted by American Wagering, which operates the William Hill Race & Sports Book franchise in Nevada.

The hearing will focus on Regulation 22, which establishes the rules for the state’s books.

In a filing by attorneys for American Wagering, the company asks for additions to the regulations that spell out what can be comped to encourage player loyalty.

Currently, the regulations can’t “prohibit the granting of room, food, beverage or entertainment admission complimentaries.”

The requested amendment would expand the list of comps a book can offer.

The proposed amendment spells out that rules can’t “prohibit the granting of room, food, beverage, racing data, tobacco or services, including spa services, movies, bowling and entertainment admission that are offered by the book on the premises of the licensee where the books is located or offered by an affiliate licensee, all without limit with respect to the value of such goods or services.”

The proposed amendment also doesn’t prohibit offering “limousine or other car service transportation to and from the gaming establishment where the book is located, all without limit with respect to the value of such goods or services.” The amendment would also exempt “merchandise or other non-cash equivalents not exceeding $100 per patron per week with the value of such $100 determined by the book’s or such licensee’s cost.”

The proposal also allows the Control Board’s chairman to review other comps not specified.

The one thing books can’t offer players is a rebate or to change the odds listed by the track where the race is being run.

“William Hill understands the need to regulate rebates and similar incentives in order to avoid cash rewards to patrons placing pari-mutuel wagers,” said a filing by attorney Sylvia Tiscareno on behalf of American Wagering.

“However, based on the industry’s current interpretation of Regulation 22.125, rebates are not currently being offered to patrons. Promotional merchandise does not create the types of concerns raised with cash rebates,” she said. “Rather, it is simply another type of complementary which, in most cases, has a lower value than the complementary items (rooms, food, beverage and entertainment) already expressly permitted by Regulation 22.125.”

Proponents of the amendment aren’t expecting opposition to the proposal and no group has stepped forward to oppose it. One other sports book operator, the South Point, has written a letter of support for the amendment.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta.