Сasinos Against High Rollers: Paradox of the Gambling Industry

“High roller” is a slang term that most casino-related entertainment enthusiasts have heard at least once in their lifetime, but what does it mean exactly? The answer might not be as simple as one might think, so let’s explore all the ins and outs of being a high roller and their influence on the modern-day gambling industry.

Who is a “high roller” by modern-day standards

A high roller, also known as a “whale,” is a gambler who consistently wagers much higher than an average casino visitor. The tricky part is that there is no definitive consensus on the betting range within which high rollers usually operate. In practice, the range is determined by two main parameters: game type and casino of choice. Let’s take a look at a few examples:

The above are bet ranges in the so-called “high-limit rooms” and tournaments of various land-based casinos worldwide, and that is precisely where one will find high roller players gambling. However, some establishments' ranges are lower for the same room type. For instance, land-based casino Resorts World New York City offers three rooms classified as “high-limit,” with minimum bets of just $20, $15, and $1 for roulette, blackjack, and slot machines, respectively. Hence, the conclusion is that being considered a high roller is an attainable endeavor for many visitors to some casinos.

Are high rollers a potential risk or reward for casinos

Many casinos offer their high rollers premium treatment, including luxury accommodation, private jet transportation, personalized services, exclusive gaming areas, and tournaments. But why is that, and is the presence of high rollers such a benefit for the hosts? Let's go over a few specific advantages and disadvantages from the point of view of casinos that offer services to high rollers:

Potential Rewards

Revenue generation: not considering savvy masters who abuse systemic loopholes, most high rollers generate significant profits due to their high-stake playstyles.

Marketing benefits: many high rollers are famous people, even celebrities, so their presence always leads to a buzz in the media, which results in a reputational boost to any casino.

Associated expenses: high rollers tend to spend absurd amounts on prestige accommodation, fine dining, shopping, and other services casinos offer during their stays.

Potential Risks

Financial exposure: high rollers on a streak can melt through casinos’ revenues like a hot knife through butter, so casinos must manage the risks of high payouts to assure financial stability.

Reputational damage: building a trustworthy brand that people identify with is key in the gambling industry, and disputes over winnings bring casinos nothing but bad publicity.

Regulatory issues: high money wagering attracts scrutiny from regulators concerning various aspects of casino activities, mainly anti-money laundering (AML) measures.

As one can see, quite a few beneficial factors encourage casinos to build long-lasting relationships with high rollers, but this is a double-edged sword. While most high rollers fall into the category of rich amateur players who enjoy a good old hand of baccarat on the weekend, the other category is those who actively try to exploit weaknesses in casinos’ systems for personal financial gain.

Take the case of Don Johnson, who beat three of Atlantic City's most famous casinos at blackjack for $15 million in 2011. By waiting for the perfect moment, Don took advantage of a 32-month steady decline in casino revenues at Tropicana, Borgata, and Caesars due to the legalization of casinos in neighboring states. Gambling houses began to conclude that a more intense battle for high rollers in the region was coming. By lying low for a while, Don could lull the local overseers into a false sense of security. When casino representatives, depressed by their situation, approached him with an offer to play at theirs on "improved terms," ​​he pulled the trigger. What were those terms? A lower house edge and cashback on losses, the likes of which had never been seen in New Jersey. Suffice it to say, Don was no average Joe. He is an astounding blackjack player with years of experience, but keeping that in disguise helped him conquer Atlantic City that fateful month.

The trick for casinos is to learn to distinguish between low-skilled high rollers and skilled ones, luring the former and imposing limits on the latter. Let's figure out how casinos have adapted to the tricks of high rollers like Don through the prism of land-based and online establishments.

How do brick-and-mortar casinos regulate high roller gameplay

In general, land-based casinos must adhere to stricter regulation requirements than online casinos, so if a player wins a massive jackpot fairly, not paying out under the guise of some points about AML is not an option. So, what limit strategies do land-based casinos impose on whales to stay in business? Let's find out.

Psychological Influence via Incentives

Casinos are always interested in building a brand and retaining their high rollers because of the house edge, which, in the long run, always favors the house, thus its name. In most cases, casinos won’t ever discuss loosening their grip on it even slightly, despite sporadic cases like the Don Johnson one. Here are a few common incentives used to entice players to keep coming back:

Premium rules: most establishments have high-limit rooms, where standard behavioral rules don’t apply. Only whales can access them and enjoy an array of benefits, such as free food and beverages, one-on-one tables, indoor smoking, etc.

Lavish amenities: It is a pretty standard practice to offer the casino’s biggest spenders high-end benefits in gourmet meals, tailor suits, tickets to shows, and even private jet flights, all for free.

Surveillance and Monitoring

Casinos utilize savvy surveillance systems and data analytics software to examine behavior during gameplay and detect fraud. Advantage play (card counting, edge sorting, etc.) is considered illegal in many places, and players can be permanently banned from the grounds if caught using it, as in the case of Phil Ivey vs. Crockfords Casino.

In terms of an example of a monitoring system, Grosvenor Casino has implemented surveillance software developed by Ipsotek to prevent cheating at roulette tables. It was designed to combat an illicit technique called “top-hatting,” and the undisclosed cheating method used after “last bets” was called. The improved maintenance of game integrity was achieved thanks to CCTV camera monitoring, which the software connects to.

Conditions Adjustment

The house edge in each separate game heavily favors casinos in the long term because of the math behind the games’ designs. But, believe it or not, the house edge can be adjusted via various means, like altering payout structures in slots, increasing the number of decks in blackjack, or choosing a roulette variation with a higher in-built house edge. Furthermore, casinos can set custom betting limits for tournaments or separate individuals to prevent uncontrollable catastrophic losses.

Digital high rollers and online casinos’ adaptation to their playstyle

High rollers have it rougher regarding high-stakes gambling in virtual casinos. Online platforms tend to impose several restrictions and rules to prolong the cashout process for as long as possible. This, in turn, increases the likelihood of winnings being re-wagered and potentially lost due to the house edge. Let’s go over a few examples.

Common Types of Restrictions

Withdrawal limits: unlike brick-and-mortar casinos, online venues can incorporate mandatory daily, weekly, and/or monthly withdrawal caps that prevent users from attaining their winnings in full, thus keeping them in play.

Maximum bet limits: virtual casinos can impose caps on maximum bet amounts to reduce the potential damages from a single bet/spin win hit by a player.

AML protocols: Most gambling licenses require their carriers to adhere to strict regulatory protocols. One of the many rules is reporting withdrawal attempts of significant sums (€2,000 and more, under EU AMLD5), which prolongs the withdrawal process.

Deposit wagers: most online casinos offer deposit bonuses to their customers, which often come as extra cash. To withdraw said cash, it has to be wagered a specific number of times, tying the players’ money to the platform.

Bonus restrictions: many other types of bonuses, such as free spins, are offered to seasoned players by virtual casinos, but these also come with conditions. Many come with capped maximum wins and/or are tied only to specific games.

Terms and conditions: this section encompasses all the restrictions mentioned and then some, which is especially sensitive for high rollers. For instance, most operators reserve the right to suspend or terminate player accounts to ensure fair play and to comply with legal obligations. Services can typically be discontinued due to “suspicion of fraudulent activity.” Because of the vague wording, unreputable platforms could exploit this loophole to justify withholding winnings. Points 4.1.9 and 12.2 of Lucky 31 Casino’s T&C are good examples of how many casinos describe their policy against fraud. For clarity, we aren’t accusing this particular operator of exploitation of their players. Still, the ambiguity of terminology is evident, and no ground classification of what is considered “fraudulent, collusive, fixing, or other unlawful activity” is given. Considering the fact in hand, high rollers are much less protected regarding the safety of their balances with virtual casinos.

The restrictions above wouldn't work without incentives that lure high rollers in and stimulate their desire to keep playing. The most prominent are VIP programs for regular users constructed in a tier format. In the case of King Billy Casino, for example, there are 10 available VIP tiers that you progress on by depositing and wagering money on casino games selected by the platform. Each consecutive tier offers higher rewards, from free spins and weekly cashback on lvl3 to real money cash prizes and personal manager access on lvl10. The main tricks in play are that not all casino games contribute equally to accruing points, and points have an expiry period, so users must show consistent engagement to keep them.

Another retention strategy is the introduction of one-on-one live games for whales, essentially an attempt to mimic the exclusivity of land-based high-limit rooms. One such game is Salon Privé Blackjack by Evolution Gaming. According to various sources, the game’s average betting range is between €1,000 - €15,000, and one allegedly needs at least £6,000 of balance just to get allowed in. Few roulette high rollers would walk past an opportunity to try their hands on the game with 99.29% RTP, and the appeal of accessing a casino experience with a personal croupier from anywhere only adds to the excitement.

The online casino era has also stimulated the emergence of two new non-standard types of high rollers: crypto gamblers and bonus buyers. Both types of whales focus on using modern strategies previously unavailable in the gambling market and are associated primarily with virtual platforms. Let's get to know them better.

Types of Virtual High Rollers

Crypto gamblers: with the introduction of crypto virtual casinos came high rollers who use the fluctuating value of cryptocurrencies to attempt to gain an extra edge on their wins. For instance, due to the volatile rate of BTC, your win of $50,000 can rise to $60,000 or drop to $40,000 in a matter of a few days.

Bonus buyers: online slots boast many features that are uncommon among their land-based counterparts. One such feature is “bonus buy,” which allows users to purchase direct access to the game’s bonus rounds that offer a higher payout potential thanks to multipliers, free spins, expanding reels, and sometimes even higher RTP ratios. The only downside is the cost, often around 50x-100x your current bet per spin, but for high rollers that value efficiency and a high-risk, high-reward mentality, this is a perfect way of enjoying slots.

Casinos vs high rollers, who truly has the upper hand

After researching and studying the topic of high rollers versus casinos for quite some time, we concluded that, like with the house edge, casinos are always in a beneficial position in the long term since they are the ones making the rules. Despite rare cases of savvy masterminds that succeed in cracking the system, most high rollers play by casinos’ rules, not the other way around.

For people who plan on having some high-stakes fun but have never tried it, we suggest visiting land-based casinos over virtual ones since the benefits reign supreme, mainly in terms of experience and safety. High-limit rooms offer a one-of-a-kind session thanks to free food and beverages, a personal dealer, and other perks outlined in this article previously that one can’t access via a device’s screen. Not to mention, the vague T&C terminology regarding fraud policy is a considerable risk to any whale’s balance.