How casino comps are calculated from theoretical loss

• Conventional rating formulaGross wager = average wager x time x decisions constant; theoretical win = gross wager x house advantageSource
• Comp factorA typical range is 15 to 45 percent of theoretical expected win (US Patent 6,267,671, background)Source
• Comp-purpose edge vs. true edge (one Strip casino)Blackjack 3:2: 0.48% true vs 0.75% for comps; craps 1.36% vs 1.58%; baccarat 1.06% vs 1.20%Source
• Loser policy cited by Max RubinLosers get between 25%-40% of theoretical losses or 10% of actual losses, whichever is greater (2005)Source

The short answer: comps pay on expected loss, not actual loss

Land-based casino player clubs do not reward you for what you lose. They reward you for what the casino expects to win from your play, a figure called theoretical loss, or "theo" (from the casino's side, theoretical win). Two players with the same average bet, speed and time at the same game earn the same comps, whether one of them walked away a winner or not.

The standard calculation multiplies four inputs: average bet x decisions per hour x hours played x house edge. The casino then gives back a slice of that theo as comps, a share known as the reinvestment rate or comp factor. A US patent for an automated table-rating system describes the conventional method this way: gross wager equals average wager times time times a decisions constant, and theoretical win is the gross wager multiplied by the house advantage. Its background section adds that a typical comp factor is fifteen to forty-five percent of theoretical expected win (US Patent 6,267,671).

Online cashback works on a different base: your actual net loss over a period. That difference is the main reason the two programs reward the same session so differently.

The four inputs of theoretical loss

Each input is an estimate, and each one can be set in the casino's favor.

• Average bet. At table games a supervisor observes and records it; at slots and video poker the machine tracks coin-in directly. The patent above notes that the manual method is subjective, which is why it proposed reading chip values electronically.
• Decisions per hour. Hands, rolls or spins per hour. For table games the casino uses a fixed constant, described in the patent as its best guess for an average player.
• Hours played. From the time you are rated in to the time you leave, or card-in to card-out at a machine.
• House edge. Often not the true edge but a slightly higher "comp-purpose" figure that assumes less-than-perfect play.

The last two points matter. A comp calculator published by Easy.Vegas lists one Strip casino's figures: 3:2 blackjack at 0.48% true edge but 0.75% for comps, craps at 1.36% versus 1.58%, and baccarat at 1.06% versus 1.20%. The same source lists typical speeds such as about 70 hands an hour for blackjack and baccarat at a normal pace, about 43 rolls for craps, about 55 spins for roulette, and 300 to 1,400 spins an hour for slots. Rating rules differ between properties, and the casino does not publish them, so treat these as examples rather than standards.

Worked examples: three sessions, one formula

Example 1, blackjack. $25 average bet, 70 hands an hour, 4 hours, 0.75% comp-purpose edge.

• Gross wager: $25 x 70 x 4 = $7,000.
• Theo: $7,000 x 0.0075 = $52.50.
• Comps at a 30% reinvestment rate: $52.50 x 0.30 = $15.75.

Example 2, slots. $1 average spin, 600 spins an hour, 4 hours, an assumed 6% edge.

• Coin-in: $1 x 600 x 4 = $2,400.
• Theo: $2,400 x 0.06 = $144.
• Comps at 30%: $144 x 0.30 = $43.20.

Example 3, baccarat. $50 average bet, 70 hands an hour, 3 hours, 1.20% comp-purpose edge.

• Gross wager: $50 x 70 x 3 = $10,500.
• Theo: $10,500 x 0.012 = $126.
• Comps at 30%: $126 x 0.30 = $37.80.

The slot player bets a quarter as much per round as the blackjack player and still generates almost three times the theo. Speed and edge drive the number far more than bet size, which is why player clubs value slot play so highly.

Table: theo and comps per hour at a glance

The table applies the formula to one hour of play. Table-game rows use a $25 average bet and machine rows a $1 average bet. Speeds and comp-purpose edges are the Easy.Vegas figures where available; for double-zero roulette, video poker and slots the true or assumed edge is used. Reinvestment is set at 30% for comparison.

The edges in the roulette and video poker rows come from the Wizard of Odds house edge table, which lists double-zero roulette at 5.26%, full-pay Jacks or Better at 0.46% and slot machines at 2%-15%. A different speed, bet or edge changes every figure in proportion.

Reinvestment rates: how much of the theo comes back

The reinvestment rate is set by each property and often by player tier, and it is rarely published. The available figures come from industry sources rather than casino disclosures:

• The rating-system patent cites a typical comp factor of 15% to 45% of theoretical expected win.
• Easy.Vegas's calculator uses 10%-20% for locals casinos and 20%-40% for Strip casinos, with 30%-33% as a normal Strip rate.
• A Las Vegas Advisor answer quoting Comp City author Max Rubin said losers get "between 25%-40% of theoretical losses or 10% of actual losses, whichever is greater", while everyone else is comped at the same rate based on theoretical losses (Las Vegas Advisor, 2005). That is an older statement of policy and practice may have changed.

Put together with the edge, the reinvestment rate tells you what comps are worth as a share of your total action. At 30% of a 0.75% comp edge, blackjack comps equal 0.225% of everything you bet. At 30% of a 6% slot, they equal 1.8% of coin-in. Either way, comps return a fraction of the expected loss, never more than it, so they lower the cost of play without changing its direction.

Online cashback: paid on actual losses

Online cashback flips the base. Instead of a share of what you were expected to lose, it pays a percentage of what you actually lost over a period, and nothing if the period ends in profit. The two systems give opposite answers on the same session.

Example. Take the blackjack session above: $7,000 wagered. The comps at 30% of a 0.75% comp-edge theo are $15.75 regardless of outcome. Now compare 10% online cashback on net losses:

• If you lost $300 in the session: cashback $30, almost twice the comps.
• If you lost $50: cashback $5, about a third of the comps.
• If you won $200: cashback $0, while the comps are still $15.75.

On average, the expected loss at a true 0.48% edge is $7,000 x 0.0048 = $33.60, so 10% cashback is worth a little more than $3.36 per session over time. It is slightly more than that because cashback is paid only on losing periods, which is the netting effect explained in daily vs weekly cashback. On a low-edge game, theo-based comps at a generous rate can be worth more than loss-based cashback; on a high-edge slot, the comparison depends on the cashback rate and the playthrough attached to it.

Comps versus cashback side by side

Comp value also depends on what you would have paid anyway: a free meal you did not want is worth less than its menu price. Cashback paid as cash is worth its face value, while cashback with a playthrough is worth less, as shown in what cashback with wagering is really worth. For a general overview of how these programs are structured online, see the casino cashback guide.

What this means for you

Because comps follow theo, the actions that raise comps are the same ones that raise your expected loss: bigger bets, faster games, longer sessions and higher-edge games. Chasing a tier or a free room usually costs more in expected losses than the reward is worth, since the reinvestment rate is always below 100% of theo.

Treat comps and cashback as a discount on entertainment you already planned. Set a budget and a time limit before the session, not after checking your points. If play stops feeling like a choice, the National Problem Gambling Helpline at 1-800-MY-RESET (call, text or chat, 1800myreset.org) is free and confidential, and casinos in regulated states offer self-exclusion programs. Casino gambling in the US is generally for adults 21 and over.

21+ only. Cashback reduces losses; it does not turn a losing game into a winning one. Set a deposit limit before you claim any rebate. Gambling problem? Call or text 1-800-MY-RESET — free, confidential, 24/7.

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