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PR Newswire
11-12-2010, 09:51 AM
Dec 11, 2010
You play, you pay
MBS sues 'premium' player over debts - a move that's usually a last resort
By Ng Kai Ling
THERE is an old saying in the gaming world: When it comes to big-spending 'premium' players, casinos must win the money twice - first at the tables and second by collecting the credit lent to the gambler.
This has been thrown into sharp relief by recent news that Marina Bay Sands (MBS) is suing a player for unpaid debt of $240,868, in Singapore's first such case (see other story).
Suing players for debts is usually the last resort for casinos.
Before taking such a step, they will contact players and ask them to pay up.
In some cases, they also work out a payment plan if the customer needs more time. They might even give a discount on the money owed.
But Las Vegas-based casino consultant Andrew Klebanow said: 'Ultimately, if the customer does not pay back the debt, the casino will sue the customer in court, just as any business would when it is owed money.'
He said it is not the casino's intention to embarrass customers, but it does happen in the process of operating the business.
Mr Klebanow added: 'It is up to the customers if they would like to avoid embarrassment by paying their debts or risk public exposure. Players that do not pay their debts risk never being able to get credit in any other casino.'
MBS and Singapore's other integrated resort, Resorts World Sentosa, declined to reveal the exact process they follow when recovering debts.
Under Singapore's Casino Control Act, the casinos can extend credit to only 'premium' players, defined as patrons who have accounts with the casinos amounting to at least $100,000.
Industry players say that before credit can be extended to the players, both parties have to sign a written agreement stating the player's maximum credit limit and other terms and conditions.
Mr Klebanow explained that the agreement signed when credit is extended is called a 'marker'.
It is essentially a post-dated cheque or promise to pay back the credit within a stipulated time.
When the payment date is near, casinos advise players that if the money is not returned, they will deposit the cheque.
'If the player is intent on paying, he may ask the casino for more time or establish a payment plan,' he said.
Dealers told The Straits Times that in the private rooms where premium players wager, it is common to see players who were cleaned out signing markers.
Once these are signed, players can continue gambling without leaving the tables - and that is when debts can roll in.
'I have seen players who have signed marker after marker. Each marker can be as high as $500,000. To the high rollers, it is just 10 rounds at the table,' said a 30-year-old croupier.
Players here say it is in their best interests to pay back any credit extended. A player, who declined to be named, said that since some of these premium players are prominent businessmen, news about their losses may mean bad business.
Mr Dennis Foo, 57, who wrote a White Paper on the possibility of having casinos here, said that when it comes to debt, the same business principle applies: 'You have to make good what is due.'
The head of St James Holdings lost $250,000 to Wrest Point Hotel Casino in Australia while researching for the paper.
He added: 'Everybody should go in with their eyes open. When you are playing on credit, you have to be prepared to pay.'
kailing@sph.com.sg
You play, you pay
MBS sues 'premium' player over debts - a move that's usually a last resort
By Ng Kai Ling
THERE is an old saying in the gaming world: When it comes to big-spending 'premium' players, casinos must win the money twice - first at the tables and second by collecting the credit lent to the gambler.
This has been thrown into sharp relief by recent news that Marina Bay Sands (MBS) is suing a player for unpaid debt of $240,868, in Singapore's first such case (see other story).
Suing players for debts is usually the last resort for casinos.
Before taking such a step, they will contact players and ask them to pay up.
In some cases, they also work out a payment plan if the customer needs more time. They might even give a discount on the money owed.
But Las Vegas-based casino consultant Andrew Klebanow said: 'Ultimately, if the customer does not pay back the debt, the casino will sue the customer in court, just as any business would when it is owed money.'
He said it is not the casino's intention to embarrass customers, but it does happen in the process of operating the business.
Mr Klebanow added: 'It is up to the customers if they would like to avoid embarrassment by paying their debts or risk public exposure. Players that do not pay their debts risk never being able to get credit in any other casino.'
MBS and Singapore's other integrated resort, Resorts World Sentosa, declined to reveal the exact process they follow when recovering debts.
Under Singapore's Casino Control Act, the casinos can extend credit to only 'premium' players, defined as patrons who have accounts with the casinos amounting to at least $100,000.
Industry players say that before credit can be extended to the players, both parties have to sign a written agreement stating the player's maximum credit limit and other terms and conditions.
Mr Klebanow explained that the agreement signed when credit is extended is called a 'marker'.
It is essentially a post-dated cheque or promise to pay back the credit within a stipulated time.
When the payment date is near, casinos advise players that if the money is not returned, they will deposit the cheque.
'If the player is intent on paying, he may ask the casino for more time or establish a payment plan,' he said.
Dealers told The Straits Times that in the private rooms where premium players wager, it is common to see players who were cleaned out signing markers.
Once these are signed, players can continue gambling without leaving the tables - and that is when debts can roll in.
'I have seen players who have signed marker after marker. Each marker can be as high as $500,000. To the high rollers, it is just 10 rounds at the table,' said a 30-year-old croupier.
Players here say it is in their best interests to pay back any credit extended. A player, who declined to be named, said that since some of these premium players are prominent businessmen, news about their losses may mean bad business.
Mr Dennis Foo, 57, who wrote a White Paper on the possibility of having casinos here, said that when it comes to debt, the same business principle applies: 'You have to make good what is due.'
The head of St James Holdings lost $250,000 to Wrest Point Hotel Casino in Australia while researching for the paper.
He added: 'Everybody should go in with their eyes open. When you are playing on credit, you have to be prepared to pay.'
kailing@sph.com.sg
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