Harrah's WSOP ripoff

[sobefuddled]

This is at least the third thread on this subject. Those of you who believe that Harrah's is making a fortune off the tournament obviously have not yet worked in the real world. For Harrahs and Vegas in general the WSOP is quite simply the largest trade show in the business. Now the founders of the WSOP knew it had the potential to become what it has become. Doyle Brunson himself talks in his early books about the tough business of marketing the "biggest poker game in the world."
Harrahs and Vegas want the WSOP for the same reason major cities vie for the Olympics and for major trade shows every year. It is not about the event itself. It's about what the event brings to the region/city etc. At its most basic it's about jobs and money. It shouldn't take a winning poker player long to figure out that a tremendous number of people are making money on the WSOP at all levels. If Harrahs is making more than a fair profit I would be very surprised. If they are making more total dollars than most other businesses I wouldn't be surprised. After all, he who takes the biggest risk rightfully stands to make the most money. And lose the most. That's the market in action. Come to think about it, that's also No Limit Hold'em, isn't it?

[Soulman]

To everyone who doesn't count profits from
a) extra rooms
b) extra food/drinks sold
c) more pit games
d) more cash games
e) more action and focus to the city
f) tv exposure, including commercials they would otherwise have to pay for
g) branding in general

into the profits for the WSOP, you really should stop lecturing people on economics. Do you also believe the profits from Star Wars only came from ticket sales at the movies and VHS/DVD sales?

edit: oh btw, the last part about 'branding' is also a good reason not to treat your tourney customers like crap. Word-of-mouth and reputation is not something to scoff at, especially when the expenses to remedy the complaints (long lines to register, crappy player management etc etc) are cost savers in the long run anyway. Process improvement is ~never more expensive than business as usual.

As an example, I'm going to Vegas in September. How likely do you think it is I'll stay/play at one of Harrah's properties, given the bad rap on 2+2? Way lower than before. Hidden costs/missed opportunities are very often overlooked.

[Nicok7]

[ QUOTE ]
steve wynn step up and create a competing month long series!

[/ QUOTE ]

[2easy]

I don't know the specifics of any of the numbers, but to me the question of whether or not Harrahs profits from the WSOP can be framed in my mind by asking the question:


Do you think that Harrahs would be making more money during this June and July period in Las Vegas if the WSOP was not happening?



I'll leave it open as to what you think my conclusion is.

[tourney guy]

Soulman - All I am trying to do is differentiate between the EVENTS and WSOP as a convention.

The poker is not where the money is made, and that is why the conditions for the poker players is so bad.

The misconception is that the POKER TOURNAMENTS AND GAMES are multi-million dollar winners, and they are not.

Whining about beverages is useless because people continue to buy them.

[SuperUberBob]

The WSOP does Harrah's wonders. From the WSOP itself, Harrah's does not make a lot of money. However, the WSOP draws monster crowds and those people spend money throughout Harrah's. Not many of these participants win their money and immediately go home, refusing to spend a dime of it in Vegas.

[justaPlayer]

[ QUOTE ]
Lou - You obviously do not understand how WSOP, or gaming in general, works.

1) WSOP is NOT a cash cow. If I told you what RIO makes to the bottom line for WSOP, you would be shocked.

2) Each department is essentially independant. WSOP and conventions, even though operating under the same company's roof, are separate business entities.

Thus, if the convention staff charges $2.25 for a coke, it goes in the coffers of the convention department, not the WSOP department.

If the covention guy does not make enough money for drinks, he is gone. He doesn't care about you, that is for sure, but he has goals of what he has to make in order to keep his job.

Lou, what is so hilarious to me is the simple notion of supply and demand. You can complain all you want about $2.25 cokes, but if you and the rest of the clowns who go to WSOP CONTINUE TO BUY $2.25 COKES, YOU ARE GOING TO CONTINUE TO PAY $2.25.

The days of Benny Binion are long, long gone, and people like you have a decision to make. You are either going to play WSOP or not. If you do continue to play, your complaints on a weblog are essentially useless.

Don't you see what a sucker you sound like??

[/ QUOTE ]

Damn, player, a little bitter?

Don't you see what a pork-faced animal you sound like?(?)

[justaPlayer]

Who even cares about the issue? Go there or don't go there. Buy the drinks or don't buy the drinks. Make pissy, whiny, know-it-all posts or don't. It's all good.

I, for one, make several hundred thousand dollars a year thinking and moving my index finger, and as such, am intensely concerned about the price of my Cokes...

[Soulman]

[ QUOTE ]
Soulman - All I am trying to do is differentiate between the EVENTS and WSOP as a convention.

The poker is not where the money is made, and that is why the conditions for the poker players is so bad.

The misconception is that the POKER TOURNAMENTS AND GAMES are multi-million dollar winners, and they are not.

Whining about beverages is useless because people continue to buy them.

[/ QUOTE ]
Yeah that's cool, re: clearing up that misconception. It's all related though, and imo Harrah's are doing themselves a disservice by treating the tournament players badly.

I don't fault them for charging for drinks etc though, that's just business...as long as they don't take it too far.