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Total Rewards Data Worth $1 Billion?

Discussion in 'Casino Industry & Development' started by Chuck2009x, Mar 20, 2015.

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  1. Chuck2009x

    Chuck2009x VIP Whale

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  2. Krh2o

    Krh2o MIA

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    That's a little more then I thought, but 45 million players is a lot. Also I was surprises how little equity they actually have in some casinos.
     
  3. DonnyC

    DonnyC VIP Whale

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    Does this mean anything to the regular CET customers?
     
  4. BackInVegas

    BackInVegas VIP Whale

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    Nope. The only thing it might mean is that Total Rewards gets revamped and some things are taken away. Which seems to be what is happening to the Comp System. Bean Counters hate COMPS.
     
  5. BackInVegas

    BackInVegas VIP Whale

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    The shuffling of assets to protect them and off-loading debt to "new companies" then having that company go bankrupt(to wipe out some of the debt, legally, and not have to pay any of it back) has been the game played for decades. Bean Counters hate comps, but they love doing that.
     
  6. 44inarow

    44inarow VIP Whale

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    Not surprising. Customer data is possibly the single most valuable asset of our modern era. Knowing your spending habits is how Facebook and Google can make so much money despite not charging for their primary consumer-facing services.
     
  7. leo21

    leo21 VIP Whale

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    Yeah, it makes sense. It's not just the customer data that's valuable. It's also all programming in the software that folks would want. They aren't just tracking play and they are able to guess alot about their customers just from the bit a of demographic info we give. It doesn't seem like any other casino company has come close. My concern is that some other business entity would end up with access to Total Rewards through all this but hopefully if that happens we will get the opportunity to opt out.
     
  8. Kickin

    Kickin Flea

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    Yeah, honestly I'm not surprised. For however bad Loveman is as a CEO he is a good operations guy and the TR system is not only more robust than any other casino player database its more robust than most consumer tracking databases in existense. The system is so good that CET has an entire consulting division that just focuses on bringing that expertise to other consumer companies. As a player database it's not only deep but it's also so wide. They have by far the biggest national database of gamblers given their footprint in so many markets.

    These kinds of things are almost impossible to realistically value so the 1bn valuation may be too high or too low. But there is no doubt its one their flagship assets.
     
  9. phade

    phade Low-Roller

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    I have experience in Risk Management and Analytics for a $3B/yr company.

    I would suspect it may be double that $1B estimate. I've been involved with the sale of similar information that my company collects to other companies - data about business/business owners. The scenario as Kickin noted - the realistic value determination - is problematic. My experience has been that the value of something that includes the relevant client/consumer information, the querying/parsing and mining properties of the database, and any other proprietary ownership that will transfer upon sale is very high in today's market. When you start talking about the premier offering in a segment as large as the casino industry, valuation starts to get crazy. I see a valuation between $1B and $3B, I know that is quite the range, but there are not a lot of public comps known, and the scarcity of the product matched with its dominance over other options, inflates the valuation a company may agree to pay. The cost to replicate that (ie garner the market share of consumer/clients, build a database, collect the info, and be able to parse it to drive decision-making), is likely above $3B and that's not factoring in time.

    Big data really is today's currency by which companies grow as fast as they can support or retain clients better than they have historically, or a combination thereof.
     
  10. Chuck2009x

    Chuck2009x VIP Whale

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    N.M.
     
    Last edited: Mar 29, 2015
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