But for Pennsylvania's seven slots parlors, giving away tax-free credits - $21.1 million worth in January alone - is more than just a marketing tool. Gaming operators here say it has become one of their most powerful weapons for siphoning business away from Atlantic City's casinos.
The New Jersey Legislature decided in 2004 to phase out the tax on complimentaries, and it expires June 30, said state Casino Control Commission spokesman Dan Heneghan.
The change cannot come soon enough for Atlantic City, as all of Pennsylvania's gambling halls, from Mohegan Sun in Wilkes-Barre to Mount Airy Casino Resort in the Poconos, are ramping up free slot play heavily this year. Look for the Pennsylvania comps to come even more fast and furious after June.
The most generous giver, PhillyPark, is spending $70 million in 2009 on free slot play, double what it spent last year, to keep regulars like Neil coming back.
"It gives our customers what they are looking for . . . more time on the devices, instead of giving them trips to the Bahamas and fancy dinners," said PhillyPark president Dave Jonas.
Casino operators here say the slot credits' tax-free status in Pennsylvania is a huge advantage over Atlantic City's casinos, which are required to pay a 4.25 percent tax on "comps" - the freebie hotel rooms, meals, or gaming credits they shower on their most loyal customers.
The tax write-off, they say, helps compensate for Pennsylvania's high tax on gaming proceeds. The state's slots parlors pay a 55 percent tax on gross slots revenue; New Jersey casinos pay 9.25 percent.
"The higher tax rate greatly impacts the amount of revenue Mount Airy Casino Resort has to market itself and remain competitive with casinos in Atlantic City, making free slots play a vital piece of our . . . efforts," said spokesman Pete Peterson.
Use of free slot play at Mount Airy, which debuted in October 2007, jumped 303 percent last month from February 2008.
