SYSTEM AND METHOD FOR JUNKET BUSINESS
The junket loyalty system (JLS) and method for operation disclosed herein are adapted for effectively operating and managing a junket business.
This description relates to system and method for junket gaming management.
BACKGROUNDThe junket business has been in existence in the Gaming/Casino industry for a long time. Junket business entails providing and fulfilling customers' needs in various areas, such as providing travel arrangements, meal services and other accommodations, including their gambling needs.
Casino junket operators arrange and provide customers with junket trips to resorts. The resorts may include a casino. Casino junket operators may also provide additional services. Casino junket operators and the gaming industry have worked together and have seen various levels of success in the past. Recently, more casino junket operators have started to enter into the gaming industry. This has given customers more choice in their selection of junket operators when planning a junket trip to a resort.
Accordingly, customers have a choice to use different casino junket operators at different times or locations. Because of the increased competition, casino junket operators have used various methods to attract customers to their services. Examples of the various methods include offers of higher rebates on commission and/or higher levels of credit facility. Attracted to the competitive offers, customers have switched from one casino junket operator to another at will, as there is no reason to continue to use a particular casino junket operator. Customers have had no incentive to remain loyal to a specific casino junket operator.
This has caused difficulty to some casino junket operators—even if rebates to the maximum of commission provided by casino operators were offered, casino junket operators may be forced out of the industry due to the trimming of profit margins and the lack of returning customers.
Generally, casino junket operators organize junket trips for customers by providing non-gaming related services to bring these customers to the casino doorsteps. The customers are then left to the casino hosts to service these customers at the casino. Credit lines are accorded directly by the casino to the customers and the junket operators are not involved in gaming related services such as exchanging of gaming chips and cash outs, etc. The customers deal directly with the casino in all gaming related needs and services up to the closing of gaming account.
Some casino junket operators and casinos have started working together. For example, some casino junket operators are given licenses by the casino to act as independent agents. In some instances, government approval may also be required. As independent agents, the casino junket operator will be allowed to directly market and organize junket trips for customers to gamble at the casino. Further, the casino junket operator may also be allowed to provide their services on site at the casino. Generally, a casino will reward the casino junket operator with commission based on the amount gambled by the customers that the casino junket operator brings to the casino. Further, some casinos have started allowing some casino junket operators to provide gaming related services to the customers. However, these gaming related services have not been very effective. The gaming related services are provided by some casino junket operators in a rudimentary manner using manual methods. For example, there are many hindrances and problems arising in terms of tracking, evaluating, executing junket operations business activities and management of these activities. For example, it has been impossible to manually provide real time tracking and analysis of game related activities in a fast paced casino environment. Further, earning the trust and loyalty from the customer has been even more difficult because there has been a lack of transparency and reliability.
Accordingly, there has been a long felt need for improvement in the art that can increase loyalty of customers to a casino junket operator.
SUMMARYThe junket loyalty system (JLS) and method for operation disclosed herein are adapted for effectively operating and managing a junket business.
In one embodied method for increasing the loyalty of a customer, the method includes providing a computing device that includes a processor, a display, a computer readable medium, and a coding configured to calculate loyalty points of the customer. The method also includes determining a performance value of the customer. Determining the performance value of the customer includes calculating an amount rolled by the customer playing a game during a gaming trip, wherein the amount rolled is determined by an amount of cash chips exchanged for an amount of non-negotiable chips. The method further includes calculating the loyalty points of the customer based on the performance value of the customer, storing the loyalty points of the customer on the computer readable medium, and displaying the loyalty points of the customer on the display. Capturing of rolling information can be conducted using the manual method of recording on a paper-based card as an alternative.
The method may also include providing the customer with a portable memory storage device and calculating a customer's risk of loss in a game session with program instructions that calculate the customer's risk of loss, wherein the computing device executes the program instructions. The program instructions may include predetermined payout odds associated with a game play, and a method that includes determining current odds associated with the game session based on the predetermined payout odds, determining a bet made by the customer in the game session, determining the performance value of the customer that is associated with a customer play history and calculating the customer's risk of loss from the predetermined payout odds, the bet and the performance value. The method may include displaying an indicator associated with the customer's risk of loss on the display of the computing device. The method may further include storing a record of the insurance on the portable memory storage device that is configured to be in communication with the computing device.
In another embodiment, the method includes storing a record of loyalty points on the portable memory storage device, wherein the loyalty points are incremented based on the insurance transactions. In another embodiment, the method includes storing a record of reward points on the portable memory storage device, wherein the reward points are incremented based on the insurance transactions. In still another embodiment, the coding that is configured to determine the credit line for the customer includes instructions to calculate in real time, the credit rating of the customer. The instructions may be configured to calculate in real time, the credit rating of the customer. The method may include calculating in real time the credit rating based on a historical data, wherein the historical data includes a debt data and repayment of debt data. The method may include determining the credit line for the customer, and displaying the credit line for the customer on the display.
In yet another embodiment, the portable memory storage device is an RFID card. In another embodiment, the game is baccarat and the game play is baccarat game play.
In yet another embodiment, the method includes determining the result value of the customer. The result value is determined by a method that includes calculating a settlement time of outstanding debt.
In yet another embodiment, the method includes determining the fold value of the customer. The fold value is determined by a method that includes calculating the rolling of the customer during a period of time divided by a credit line extended by a junket operator.
In another embodiment, the method includes determining the frequency value of the customer. The frequency value of the customer is determined by a method that includes calculating an amount of web portal services used by the customer.
In another embodiment, a system for increasing the loyalty of a customer is disclosed herein. The system comprises one or more computing devices. Each computing device includes a processor, a computer readable medium, and a coding configured to calculate loyalty points of the customer and calculate a risk of loss. The coding includes a predetermined payout odds associated with a game play, and instructions that determine current odds associated with a game session based on the predetermined payout odds, instructions that determine a bet made by the customer in the game session, instructions that determine a performance value of the customer that is associated with a customer's play history, and instructions that calculate the risk of loss from the predetermined payout odds, the bet, and the performance value. The computing device also includes a display that is adapted to display an indicator associated with the risk of loss and the loyalty points of the customer. The computing device is configured to transmit a record of insurance to a portable memory storage device that is configured to be in communication with the computing device.
In another embodiment, the system includes a portable memory storage device that stores the loyalty points of the customer, and a record of insurance. The portable memory storage device may be an RFID card. The computing device may include an automatic card image converter. In another embodiment, the computing device includes a sound input portion and a coding adapted to recognize speech. In another embodiment, the computing device includes a video camera.
The drawings, which are not necessarily drawn to scale, illustrate generally, by way of example, but not by way of limitation, various embodiments discussed in this application.
In the following detailed description, reference is made to the accompanying drawings which form a part thereof, and in which is shown by way of illustration specific embodiments in which the inventive concepts may be practiced. These embodiments are described in sufficient detail to enable those skilled in the art to operate the JLS, and it is to be understood that the embodiments may be combined or used separately, or that other embodiments may be utilized and that structural and procedural changes may be made without departing from the spirit and scope of the inventive concepts. The following detailed description provides examples, and the scope of the present invention is defined by the claims to be added and their equivalents.
The term “junket,” as used in this disclosure, means an arrangement to induce customers who are selected or approved for participation on the basis of their ability to satisfy a financial qualification obligation that is related to the customers' ability or willingness to come to a licensed gaming facility for the purpose of gambling. The customers may receive all or part of the cost of transportation, food, lodging, or entertainment directly or indirectly paid by a gaming facility licensee or agent as consideration.
The term “junket operator,” “casino junket operator,” “junket promoter” or “casino junket promoter,” as used in this disclosure, means an individual or entity that operates a junket business. In one embodiment, the junket operator is a licensee of a gaming facility to act as an independent agent. In one embodiment, approval by local government may be required before a junket operator is allowed to operate within the gaming facility. In return of being granted the license, the junket operator may be required to comply with certain terms and conditions, e.g., achieving a minimum business volume and/or providing some form of collateral for establishment of credit facilities.
The term “junket representative” means any individual who is employed by a Junket Operator to organize, promote or conduct a junket on behalf of a Junket Operator.
The term “appointed agent” or “agent,” as used in this disclosure, means an agent of the junket operator whose primary role is to source for customers to gamble at a gaming facility, where an agreement exists stipulating terms and conditions of the principal-agent relationship, such as collaterals for credit extension and commission rates, etc. Any individual or entity can be an appointed agent. Junket operators typically prefer to have individuals as appointed agents.
The term “appointed collaborator” or “collaborator,” as used in this disclosure, means any individual or entity that works together with the junket operator to develop and promote the business based on a profit/loss sharing agreement.
The responsibilities and compensation for appointed collaborators are different from those for appointed agents. Junket operators typically prefer to have individuals as appointed collaborators.
The term “junket customer” or “customer” as used in this disclosure, means an individual customer of the junket operator, who gambles at gaming facilities by either betting against the house and/or playing insurance offered by the junket operator. The customers include: 1) direct customers, who are the direct individual customers of a junket operator; 2) direct gaming facility customers, who are the customers referred by gaming facility operators; 3) direct referred customers, who are the customers referred by the junket operator's existing customers; and 4) referred customers; who are the customers referred by appointed agents or collaborators.
The term “gaming facility,” as used in this disclosure, means an establishment, including a virtual establishment, utilized primarily for the purposes of gaming and where gaming equipment or supplies are operated for the purposes of accruing business revenue, e.g., a land casino, onboard cruise ships or internet gaming establishment. It is to be understood that any entity or individual can be a gaming facility licensee or license applicant. Typically, gaming facilities prefer to deal with individuals as long as it is permitted by law because it is easier to attach accountability to individuals as well as to establish credit lines to individuals based on their financial capacities.
The term “gaming facility operator” or “house operator,” as used in this disclosure, means an entity or individual who operates a gaming facility and manages gaming activities thereof. The gaming facility operator also maintains surveillance log record for all material surveillance activities within the gaming facility and accounting records for all gaming activities that the gaming facility operates.
The term “joint venture scheme” or “JV scheme,” as used in this disclosure, means an association of a junket operator and at least another party formed under a contractual arrangement, whereby the junket operator offers to a customer, appointed agent or collaborator to form the joint venture to join their expertise, capital, efforts, skills and knowledge during an insurance play. As a result, the junket operator shares profits or losses of the insurance play with at least another party.
The term “cash chip” or “live chip,” as used in this disclosure, means a chip that is exchangeable for cash at a gaming facility. In addition, cash value of the cash chip is the equivalent amount of the face value of the cash chip. Anyone in possession of the cash chip can proceed to the casino cashier to cash out the equivalent amount in exchange.
The term “non-negotiable chip” or “dead chip,” as used in this disclosure, means a chip that cannot be exchanged for cash but can be used for playing games at a gaming facility. In addition, the face value of a non-negotiable chip or “dead chip” is not the equivalent amount of cash. The casino cashier will not allow these chips to be exchanged by anyone. Only junket operators or their authorized employees are allowed to exchange these chips for cash. The commission (same percentage) will be deducted from the face value of these chips. Depending on the agreed terms, these non-negotiable chips may have a lesser cash value, say 90%.
For example 1; If the junket operator earns 1.1% commission from the gaming facility operator and at the end of the junket trip, returns $100,000 of non negotiable chips to the casino cashier, the cash value of $98,900 (after deducting $1,100 ($100,000×1.1%) is paid to the junket operator. Example 2; Gaming facility cashier will pay the junket operator a cash value of $90,000 (after deducting agreed percentage).
The term “rolling” or “turnover,” as used in this disclosure, means a process of exchanging cash chips for non-negotiable chips, including customer rolling and junket rolling.
The junket loyalty system (JLS) and method for operation disclosed herein are adapted for effectively operating and managing a junket business. The JLS includes a junket many-to-many relationship (JMTM) and a tracking, evaluating and tracing business (TRET). The JLS also includes at least one of the following subsystems: 1) junket loyalty management (JLM) subsystem, 2) rewards and loyalty for dynamic insurance play (RLDIP) subsystem, 3) junket customer relationship management (JCRM) subsystem, 4) dynamic insurance play (DIP) subsystem, 5) junket credit management (JCM) subsystem and 6) junket and agents rewards rating (JAR) subsystem.
It is to be understood that the JLS can be operated in connection with any casino and/or other gaming establishments and facilities. For convenience of description, casinos, casino establishments or other gaming establishments and facilities are referred to collectively as gaming facilities.
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- JMTM 12 for providing a relationship management between the junket operator, junket representatives, customers, appointed agents or collaborators; and
- TRET 14 for providing a mechanism to link the transactions performed by customers, appointed agents, collaborators and junket representatives at various touch-points, achieved by constantly keeping track and evaluating preferences of customers and activities of junket representatives in real time.
The JLS 10 may also include at least one of the following subsystems: - JLM subsystem 16 for providing a platform to enhance customer loyalty. JLM subsystem 16 manages customer's expectations and nurtures the relationship between loyalty points and rewards by according the loyalty points with rewards and incentives to enhance customer loyalty. It is unique for a junket operator to provide non-monetary rewards. e.g., loyalty points, derived from customer performance at the gaming table, gross profit margins and frequency of usage of services.
- RLDIP subsystem 17 for managing insurance gaming data such as dollar bet by the customer, losing dollar bet, winning dollar bet, cumulative amount lost by the customer minus bettor payout, cumulative bettor payout plus bettor loss, every winning on payout dollar and to generate junket points, which is equivalent to loyalty points, for both the agents' and junket operator's customers.
- JCRM subsystem 18 for gaining insights into customer preferences and requirements from customer data that is continuously collected, updated, and analyzed for effective and intelligent use and to accomplish business strategies and objectives. The JCRM subsystem 18 can help establish and maintain customer loyalty by providing high standard customer services through anticipating customer needs.
- DIP subsystem 20 for providing customers with options of insurance based on a set of pre-determined gaming rules and insurance odds. As a result, the customers can manage their perceived risk of a losing or winning bet. The DIP subsystem 20 is also considered a side-bet of the particular game.
- JCM subsystem 22 for assessing and evaluating of an individual, e.g., a customer, an appointed agent, and/or a collaborator. The assessment includes credit assessment for settling debt and tracking the agreed period of time for settling the debt. The gaming habits and payment capacity of each individual customer, appointed agent and/or collaborator are evaluated to establish appropriate ratings and rewards.
- JAR subsystem 24 adapted to evaluate the data collected by the JLS 10 to compute the monetary rewards and non-monetary incentives. The JAR subsystem 24 is operated via a factor-based application that is processed before and after each and every gaming trip.
The junket operation servers 26 are connected via the LAN 28 and to the communication network 30. It is to be understood that the junket operation servers 26 may communicate with other devices of the JLS 10 directly or indirectly, via any wired or wireless communication network 30, e.g. the Internet, LAN, WAN or Ethernet, Token Ring, a telephone line, a cable line, a radio channel, an optical communications line, commercial on-line service providers, a satellite communications link or a combination of any of the above. Each of the devices may themselves comprise computers or other computing devices, such as those based on the Intel® Pentium® or Centrino™ processor, that are adapted to communicate with the junket operation servers 26. Any number and type of devices may be in communication with the computer. An example of the communication network 30 is the Internet. While junket operation servers 26 are preferably accessible via the Internet, any other suitable communication network such as a local area network, a wide area network or a limited access network may be used. A main junket office system is connected to the junket operation servers via the LAN 28, which hosts JLS 10 related applications.
The junket operation servers 26 include databases, e.g., relational databases, object-based models and/or distributed databases for storing and manipulating the data types described herein. In addition, some of the databases may be stored locally in a device, e.g., a notebook. It is to be understood other memory structures besides databases may be readily employed.
The on-site notebook 34 is a notebook computer. It is to be understood that on-site notebooks 34 may also be other devices configured to facilitate communication between a plurality of computing devices 36 and the junket operation servers 26 via the communication network 30. The on-site notebook 34 may be located at a gaming facility and communicate with the junket operations servers 26 and main junket office system via the communication net work 30. The on-site notebooks 34 may be operated by operation managers and are a component for operating the JLS 10 at the gaming facility. The on-site notebooks are adapted to not only synchronize gaming and non-gaming data with the junket operation servers 26 but also work on-site together with the main junket office system 32 to run JLS applications.
The computing device 36 includes a processor, a display, a computer readable medium, and a coding configured to allow representatives to perform in real time certain functions at gaming areas. As shown in
A processor, e.g., one or more microprocessors, one or more microcontrollers, one or more digital signal processors, will receive instructions, e.g., from a memory or like device, and execute those instructions, thereby performing one or more processes defined by those instructions.
Further, programs that implement JLS methods as well as other types of data may be stored and transmitted using a variety of media, e.g., the portable memory storage device 38, in a number of manners. In some embodiments, hard-wired circuitry or custom hardware may be used in place of, or in combination with, some or all of the software instructions that can implement the processes of various embodiments. Thus, various combinations of hardware and software may be used instead of software only.
Various forms of machine-readable media may be involved in carrying data, e.g. sequences of instructions, to a processor. The term “machine-readable medium” refers to any medium that participates in providing data, e.g., instructions, data structures, which may be read by a computer, a processor or a like device. Such a medium may take many forms, including but not limited to, non-volatile media, volatile media, and transmission media. Non-volatile media include, for example, optical or magnetic disks and other persistent memory. Volatile media include dynamic random access memory (DRAM), which typically constitutes the main memory. Transmission media include coaxial cables, copper wire and fiber optics, including the wires that comprise a system bus coupled to the processor. Transmission media may include or convey acoustic waves, light waves and electromagnetic emissions, such as those generated during radio frequency (RF) and infrared (IR) data communications. Common forms of machine-readable media include, for example, a floppy disk, a flexible disk, thumb drive, hard disk, magnetic tape, any other magnetic medium, a CD-ROM, DVD, any other optical medium, punch cards, paper tape, any other physical medium with patterns of holes, a RAM, a PROM, an EPROM, a FLASH-EEPROM, any other memory chip as described hereinafter, or any other medium from which a computer can read.
In one embodiment, data may be (i) delivered from RAM to a processor; (ii) carried over a wireless transmission medium; (iii) formatted and/or transmitted according to numerous formats, standards or protocols, such as Ethernet or IEEE 802.3, SAP, ATP, Bluetooth™, and TCP/IP, TDMA, CDMA, and 3G; and/or (iv) encrypted to ensure privacy or prevent fraud in any of a variety of ways. A machine-readable medium can store in any appropriate format various program elements for performing the JLS methods.
The portable memory storage device 38 is configured to be in communication with the computing device 36. A plurality of portable memory storage devices 38 are issued by the operation managers so that each junket representative or customer has one portable memory storage devices 38 for recording and retaining transaction data, e.g., rolling, buy in, credit extension. The portable memory storage device 38 also allows encoding of a personalized identification number (PIN) for security reasons. At least some of the portable memory storage devices 38 are configured to be in communication with the computing device 36. Alternatively, some of the portable memory storage devices 38 are configured to communicate directly with the communication network 30 such as the Internet. In one embodiment, the portable memory storage device 38 is in the form of a radio frequency identification card (RFID), which can be processed via a PDA interface for various purposes, e.g., personal ID verification, rolling, settlement, insurance, etc. It is to be understood that the portable memory storage devices 38 can be of any other form which acts in accordance with their functional principle.
In one embodiment, a RFID card for a customer includes information about a customer's ID, the trip ID, customer's nick name, the credit line available to the customer, total insurance win/lost, credit rating and loyalty points. The following rolling information is included in the customer's RFID card: the ID for the junket representative for the customer, the customer's transaction type, e.g., rolling, buy-in, withdrawal, deposit, and the customer's transacted amount.
When the customer's RFID card is used, the customer first enters his/her identification number, acknowledges certain transactions such as credit line drawdown or cashing out, then opens his/her account for reviewing of his/her loyalty points or certain gaming data, such as rolling amount transacted or insurance play win/lost, etc. The customer may also review the approved credit limit and current credit rating.
A RFID card for a junket representative includes information about the representative's ID, the trip ID, the junket representative's position, and the junket representative's last action status, e.g., active, handover, settlement.
When the junket representative's card is used, the junket representative first enters his/her identification number, which allows the junket representative to access certain information based on his level of authority. The junket representative's RFID card also keeps a record of the work hours of the junket representative. In addition, the RFID card also keeps a record of transactions conducted, such as rolling, cash out, credit released to customer and settlement with customer or casino, etc.
In one embodiment, the RFID card can be read by a card reader that is attached to the computing device. The card reader has a light display to confirm that the transaction is concluded. Certain transaction records are processed by the computing device and these records are then written onto the RFID card to override the previous record.
For example, customer A has an approved credit line of $500,000. Customer A decides to conduct an initial drawdown $300,000 from the available credit line when opening an account. An authorized junket representative performs the credit drawdown on the computing device by inputting the value of $300,000 as credit drawdown. The junket representative prepares $300,000 of non-negotiable chips and hands over these chips to customer A. Customer A verifies the value of non-negotiable chips received match what is displayed on the computing device and confirms the drawdown request and acknowledges receipt of the non-negotiable chips by placing his/her RFID card onto the card reader that is attached to the computing device and inputs his/her PIN into the computing device. The junket representative then uses his/her RFID card to complete the drawdown. If the value of non-negotiable chips received does not match the value on record or shown on screen, Customer A will obviously not place his/her RFID card to enter his/her PIN.
When customer A loses during gambling, he/she can decide to request for additional drawdown $150,000 from his/her available credit line balance of $200,000, leaving $50,000 as credit line balance. The process of this additional drawdown on the RFID card and computing device is similar as that described above for the initial drawdown.
A gaming facility system 40 may also be accessible via the communication network 30.
In one embodiment, a JLS 10 on which the above methods are implemented enables parties to engage in junket operation business from remote and/or mobile locations. The JLS 10 may be implemented over a communication network such as, the Internet, a cellular network or a private wireless and/or wired network. In one embodiment, the JLS 10 operation makes maximum use of the Internet, such that only communication between the junket operation servers and main junket office system is transmitted via LAN, while other information which may be encrypted are transmitted via Internet.
Multiple users may access a single JLS. Users preferably access the system by way of computing devices 36, such as PDAs. It is to be understood that other devices, such as mobile phones, general purpose computers, mini-computers, etc., can also be used for the communication. The computing devices 36 transmit and receive gaming and non-gaming information to and from the communications network 30. Information concerning junket operation is also transmitted between network 30 and junket operation servers 26. The location of junket operation servers is not critical, however, it may reside adjacent to or remote from the gaming facility. As an example, an operation manager of the junket operator may be located on the grounds of a gaming facility and the notebook 34 may be physically within the geographic boundaries of the gaming facility operator. As discussed, however, other possibilities exist for remote location of the junket operation servers 26, notebook computers 34 and the operation manager. In one embodiment, the notebook computers 34 may function as redundant servers, for example.
Preferably, software resides on both the computing devices 36 and the junket operation servers 26. Software resident on the computing devices 36 is preferably operable to present information corresponding to gaming and non-gaming related activities discussed herein, to the user, e.g., junket representatives and customers. The computing device software is also preferably operable to receive data from the junket operation servers 26 and data input by the user, e.g., junket representatives. Software resident on the junket operation servers 26 is preferably able to exchange data with the computing device, access on-site notebook computers 34 and portable memory storage devices 38, and perform all of the functions described herein.
Gaming and non-gaming information transmitted across the network may include any information, in any format, which is necessary or desirable in the operation of the gaming experience in which the customer participates. The information may be transmitted in whole, or in combination, in any format including digital or analog, text or voice, and according to any known or future transport technologies, which may include, for example, wired or wireless technologies. The network may comprise, for example, a Local Area Network (LAN), a wireless network, a Public Switched Telephone Network (PSTN), or an Internet Protocol (IP) network such as the Internet, an intranet or an extranet. Examples of wireless technologies may include, for example, licensed or license-exempt technologies. Some specific technologies which may be used include, without limitation, Code Division Multiple Access (CDMA), Global System for Mobile Communication (GSM), General Packet Radio Service (GPRS), WiFi (802.11x), WiMax (802.16x), Public Switched Telephone Network (PSTN), Digital Subscriber Line (DSL), Integrated Services Digital Network (ISDN), or cable modem technologies. It is to be understood that other types of communication techniques are within the scope of the JLS 10. Further, it will be understood that additional components may be used in the communication of information between the customers, junket representatives and the junket operation servers 26. Such additional components may include, without limitation, lines, trunks, antennas, switches, cables, transmitters, receivers, computers, routers, servers, fiber optical transmission equipment, repeaters, amplifiers, etc.
In certain embodiments, communication of all or a portion of the customers' gaming and non-gaming information may take place without Internet. However, in at least one embodiment, the junket operation information is transmitted via Internet. Also, some or all of the customers' gaming and non-gaming information may be transmitted partially over an Internet communications path.
It should be noted that the JLS 10 can be implemented in connection with any gaming environment or an environment for any other activity, which may be conducted electronically. For instance, the JLS 10 can be employed in connection with gaming facilities in various locations/countries/jurisdictions, and include various types of games, e.g., slot machines, video lottery terminals, or other gambling devices. Numerous other scenarios can be envisioned in which the customer can use the JLS 10 to participate in remote gaming, while enjoying some other primary activities in a location remote from the gaming facility.
The JLS 10 is a comprehensive and transparent system to manage incentives for customers to continue to use a specific junket operator for planning a junket. As an independent agent, the junket operator is allowed to directly market and organize junket trips for customers to gamble at gaming facilities and to operate within the respective gaming facility to serve its customers.
With reference to
The junket operator sells non-negotiable chips to the customer with unsecured credit terms or in exchange of some form of guarantee or collateral. When the customer bets at a gaming table, the gaming facility, e.g., casino, keeps the non-negotiable chips when the customer loses. When the customer wins the bet, the gaming facility pays cash chips to the customer. Typically, the customer keeps the cash chips and uses up the non-negotiable chips at the gaming table. When the customer needs more non-negotiable chips, the customer may use the services of the junket operator to exchange cash chips for non-negotiable chips. This is termed as “player rolling” or “player turnover.” Junket operator may exchange cash chips for non-negotiable chips with the gaming facility operator. This is termed as “junket rolling” or “junket turnover.” Thus, this allows for a flow of non-negotiable chips to the customer and a flow of cash chips to the gaming facility operator.
Alternatively, appointed agents or collaborators refer customers to the junket operator and in return receive agent commission from the junket operator. The appointed agents or collaborators can also request for credit facilities from the junket operator. The appointed agents or collaborators inform the junket operator of credit lines for each individual customer and the agreed upon customer commission rate. The referred customers are sold with non-negotiable chips by the junket operator at the gaming facility.
When the customer decides to stop playing and settles/closes the account with the junket operator, the non-negotiable chips and cash chips are returned by the customer to the junket operator and the portion of the commission that the customer has earned is calculated. If the customer returns more chips than he or she originally purchased from the junket operator, he or she would be considered as having won at the gaming facility. The junket operator rebates the customer commission accumulated by the customer plus the amount that the customer has won at the gaming facility. If the customer returns fewer chips than he or she originally purchased from the junket operator, he or she would be considered as having lost at the gaming facility. The junket operator rebates the customer the customer commission accumulated by the customer minus the amounted that the customer has lost at the gaming facility.
The net loss—the loss minus the customer commission, by the customer at the gaming facility is collected by the junket operator from the customer. The junket operator collects the amount from the customer within a predetermined period of time. However, in some occasions, the junket operator has to bear the debt if the customer is unable to settle it. In one embodiment, the junket operator hires debt collection agencies to collect debts from customers.
Alternatively, when the customer is referred by the appointed agents or collaborators, the net loss by the customer is collected by the junket operator from the agents or collaborators. The customer settles the outstanding debt with the agents or collaborators. The agents or collaborators settle their outstanding debt, if any, together with the agent commission with the junket operator.
When the junket operator settles/closes the account with the gaming facility operator, the non-negotiable chips and cash chips are returned to the gaming facility operator and the commission that the junket operator earned is calculated. If the junket operator returned more chips than the total chips purchased from the gaming facility operator, the junket customers would be considered as having won at the gaming facility overall. The gaming facility operator pays the junket operator the commission plus the amount that the customers have won collectively. If the junket operator returned fewer chips than the total chips purchased from the gaming facility operator, the junket customers would be considered as having lost at the gaming facility overall. The gaming facility operator pays the junket operator the commission minus the amount that the customers have lost at the gaming facility collectively. The net loss, after crediting the junket commission earned, will be collected from the junket operator by the gaming facility operator.
The junket business provides the following services: 1) referring or bringing customers to gaming facilities, 2) providing gaming related services for customers such as exchanging gaming chips from cash chips to non-negotiable chips, 3) providing non-gaming related services, and 4) offering an insurance play.
1) Referring or Bringing Customers to Gaming FacilitiesJunket operators help with marketing gaming trips for gaming facilities. A junket operator is appointed by a gaming facility and is rewarded with commission and incentives when the customers referred by the junket operator gamble at the gaming facility.
The junket operator not only refers or brings customers to a gaming facility but also appoints agents or collaborators to bring customers to the gaming facility to secure a higher volume of business and to achieve the target business volume set by gaming facility operators. In return; the appointed agents or collaborators are given a share of the commission earned by the junket operator. This share of commission for appointed agents or collaborators is based on the rolling turnover of the referred customers.
2) Providing Gaming Related ServicesA large part of the junket business relates to the ability of the junket operator to arrange credit facilities for customers to meet their gaming needs. Credit facilities are normally provided based on both gaming and non-gaming information of each customer, which is systematically tracked by the JLS 10. Direct customers, direct referred customers and direct gaming facility customers are granted with credit facilities directly from the junket operator, while referred customers may not necessarily be granted with credit facilities from the junket operator. Alternatively, the junket operator may grant credit facilities to appointed agents or collaborators on the basis of some form of credit guarantee by the appointed agents or collaborators, which may include cash deposits, bank drafts, cashiers checks, personal checks or traveler's checks, etc. The referred customers are in turn, granted credit facilities by the appointed agents and/or collaborators. The junket operator provides credit facilities directly to customers based on structured and unambiguous qualitative information of the customer including profession, income level, gambling capacity, outstanding debts and debt settlement history, etc., owed to other junket operators or gaming facilities, which is provided by the JLS 10.
The junket operator also provides required personnel, e.g., junket representatives, to serve the customers at gaming facilities. There are various levels of service staff, ranging from junior representatives, insurance takers to controllers and operation managers.
The junket operator also helps customers with cash-out transactions by exchanging cash chips for cash.
3) Providing Non-Gaming-Related ServicesThe junket operator also provides non-gaming-related services by coordinating and making bookings with various service providers, such as airline companies, hotels/resorts, restaurants, transportation companies, spa and theaters. The junket operator settles accounts with service providers for products and/or serviced provided to the customers through the service providers. This portion of services which typically forms about 5-10% of the overall services provided by the junket operator includes reservations for rooms, booking tickets for shows, reservation for restaurants and arrangement for tours.
4) Offering Insurance PlaysThe junket business also offers an insurance play, which provides a side-bet to customers to enable them to manage perceivable gambling risks at a gaming facility. The insurance play is closely related to a particular game, whereby the customer is able to bet on the side with the junket operator to mitigate their potential losses. This service is not only offered to the players/customers who are directly playing a hand at the gaming table but also to anyone else who does not bet on a particular hand at the gaming table.
The junket operator earns two major portions of income—the commission earned based on customers' rolling; and, the income earned by offering insurance play to customers.
By marketing and organizing junket trips to a gaming facility, the junket operator is rewarded by the gaming facility operator with commission. The commission earned by the junket operator is solely dependent on the amount gambled by the customers, i.e., rolling of the customers. Most of the commissions earned by the junket operator are paid, back in the form of rebates to customers and commission to appointed agents or collaborators as inducement.
By offering an insurance play to customers, the junket operator becomes the house or banker betting against the customers for every insurance play and potentially earns income in the insurance play.
Below are two examples concerning revenue sharing in junket operation.
Example 1Casino A1 grants a license to junket operator B1, with a base commission of 1.4% and an additional incentive commission or bonus commission of 0.2% if a total rolling equals or exceeds $40 million. The junket operator B1 secures referred customer C1 through an appointed agent or collaborator D1. When the total monthly rolling of referred customer is $55 million, the revenue in the junket operation is shared as follows:
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- The junket operator B1 receives from the casino A1 a base commission of 1.4% of the total rolling,
- plus: an incidental expense entitlement, which is 0.2% of the total rolling;
- plus: an incentive commission, 0.2% of the total rolling, received from the casino A1;
- minus: 1.0% of the total rolling paid to the referred customer C1;
- minus: 0.1% of the total rolling paid to the appointed agent or collaborators D1; then:
- the net commission earned by the junket operator B1 is (1.4%+0.2%−1.0%−0.1%)*$55,000,000=$275,000
- the gross profit margin earned by the junket operator B1 is: (1.4%−1.0%−0.1%)*$55,000,000=$165,000
The incidental expense entitlement is for covering the expenses incurred for marketing the junket business and providing services to the referred customer, including, but not limited to, the expenses for air tickets, meals and other accommodation or needs.
Example 2Casino A2 grants a license to junket operator B2, with a base commission of 1.2% and an additional incentive commission or bonus commission of 0.2% if a total rolling equals or exceeds $40 million. The junket operator B2 is also given an incidental expense entitlement of 0.2% of the total rolling, which is not redeemable for cash. The junket operator B2 secures direct customer C2 to play at the casino A2. The direct customer C2 deposits $500,000 with the junket operator B2 to secure $1 million credit facilities. The direct customer C2 has rolled $10 million. Upon closing of the account with the junket operator B2, the direct customer C2 has lost $60,000 in an insurance play and has an outstanding debt of $800,000. In this example, the revenue is shared as follows:
-
- The junket operator B2 receives from the casino A2 a base commission of 1.2% of the total rolling, including incidental expense entitlement 0.2% of the total rolling, which is not redeemable for cash;
- minus: 1.0% of the total rolling rebate to the direct customer C2;
- minus: 0.1% of the total rolling rebate to the direct customer C2 as early settlement commission, when the direct customer C2 settles all the outstanding debt incurred in the current trip within a certain period of time;
- then:
- the gross profit margin earned by the junket operator B2 is (1.2%−1.0%)*$10,000,000=$20,000
- the net commission earned by the junket operator B2 is (1.2%−1.0%−0.1%)*$10,000,000=$10,000
- the net income of the junket operator B2 is: $10,000+$60,000=$70,000
With reference to
The JLS 10 requires a defined organizational structure to provide a trustworthy, transparent and reliable system to carry out various aspects of the junket business. As it involves financial transactions by customers 48, appointed agents or collaborators, junket operators and gaming facility operators, both confidentiality and security are important to the junket business to ensure all transactions carried out by duly authorized junket representatives 52 are with proper internal control systems; including a check and balance structure for organizing the junket operation business based on auditing principles of segregation of duties. The check and balance structure compartmentalizes functions and responsibilities for management accountability and management of risks. It helps provide effective junket business operation.
In one embodiment, an authority matrix stipulating various levels of authority based on principles of segregation of duties and accountability/balancing of transactions performed by junket representatives 52 is included in a portable memory storage device 38 for junket representatives 52. Likewise, in another embodiment, when a customer 48 is to perform certain functions, e.g., cashing out or drawing down a credit line, he/she is required to key in a PIN into a computing device 36, e.g., a PDA, with a portable memory storage device 38, e.g., a RFID card to acknowledge the transaction.
The JMTM 12 includes operation managers 50 to each lead a junket team. Operation managers 50 are in charge of every aspect of the junket business at the gaming facility. An operation manager 50 is considered the head of junket team operation. Generally, the duties of the operation manager 50 include handling on-site inquires, settling disputes, making adjustments in the records to correct any input errors, verifying credits of customers 48 with appointed agents or collaborators 46, extending limited credits to customers 48 directly, seeking approval for higher credit from appointed agents or collaborators 46 or junket operators 42, adjusting the total expenses of customers absorbed by the junket operator 42, assigning appointments and job duties to junket representatives 52 and ascertaining the profit and loss of a particular junket trip with the gaming facility.
The operation managers 50 are also responsible to manage various levels of junket representatives 52 assigning the roles and responsibilities 52 depending on business needs of a particular trip. In addition to ensuring a high level of customer service standards, ultimately, operation managers 50 assume the overall responsibility for security and integrity matters of all other junket representatives and controllers in his or her team.
The junket representatives 52 facilitate rolling by exchanging cash gaming chips for non-negotiable gaming chips for the customers 48. The junket representatives 52 would perform balancing and closing of customer accounts during the trip. They are basically responsible to provide all necessary gaming related services required by the customers 48. Such gaming related services include, but are not limited to, the following services:
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- rolling—exchange cash chips for non-negotiable chips for customers;
- customer cash-out—exchange cash chips for cash for customers either from their respective floats or from the gaming facility cashiers;
- customer credit request—submit credit requests for customers to a designated approving authority. In most instances, the operations managers are the designated approving authority;
- customer dealer/inspector change request—submit on behalf of customers dealer/inspector change request to the gaming facility operator;
- other requests—submit any other request for customers to facilitate customers at the gaming tables;
The main controllers 54 are entrusted to take charge of funding requirements, including initial buy-in in terms of cashing credit facilities, cash and cashier's order. The main controllers 54 distribute chips and cash to sub-controllers 56 and gaming chips, including cash chips and non-negotiable chips, to junket representatives 52. During settlement, the main controllers 54 consolidate all chips to settle with cashiers 62 of the gaming facility. The main controllers 54 are responsible to summarize results of each gaming trip to ascertain the winning/losing position of each customer 48 for an individual trip. The main controllers 54 are primarily responsible for obtaining sufficient funds to meet daily operational needs of the junket business. They are required to supervise each and every sub-controller's float amount of cash and/or gaming chips.
The sub-controller 56 is the person who holds both cash and gaming chips as custodians throughout the operation except until settlement. The duties of the sub-controllers 56 include providing fast services to the customers 48. For example, the sub-controllers 56 help with exchanging chips, including non-negotiable chips or cash chips, when customers 48 need to exchange their chips but the junket representatives 52 do not have the required amount or denomination. During settlement, all gaming chips held by the sub-controllers 56 are surrendered to the main controllers 54 and the sub-controllers 56 in turn take full control over any cash, checks and cashier's order movements. Sub-controllers 56 act as the intermediary between the customers 48 and the main controllers during the settlement period, where they are required to safe-guard all floats on hand and are accountable to the main controllers 54.
The insurance managers 58 are responsible for ascertaining profits and loss of insurance play for a junket trip. The insurance managers 58 are considered the head of insurance play operations. In an insurance play, options offered to the customers 48 are pre-determined. It is seen as the responsibility of the insurance managers 58 to ensure that proper processes are maintained and the options are indeed exercised by the customers 48. The insurance managers 58 help to ensure that the insurance play operates properly and smoothly, including resolving disputes during the play. The insurance managers 58 also help operations managers 50 with other junket operation when necessary.
The insurance takers 60 solicit and provide an insurance play for, and take insurance bets from, customers 48. The insurance takers 60 provide consistent option odds calculated by program instructions that calculate the risk of loss for the customers 48. In addition, the insurance takers 60 are responsible for their respective cash/gaming chip floats in hand and would be accountable to the insurance managers 58. As the payout odds are pre-determined, the insurance takers 60 are also responsible for ensuring that all options exercised by the customers 48 and the results thereof, are completely reflected in a segmental profit and loss statement. Collections and payments are carried out by the insurance takers 60 according to the option odds offered and the play results.
The insurance controllers 66 check the status of the capital account and cash floats of an insurance play. In addition, the insurance controllers 66 are also required to ascertain the status of a joint venture account and to reconcile these accounts of customers 48 and insurance takers 60 of the junket operation.
The financial controller 80 is the chief financial officer for the junket operation, who works in association with the assistant financial controller 82 to manage the junket operation's financial aspect. The accounting officer 110 supports the assistant financial controller 82 by making collections from customers and maintenance of the junket operations books of accounts.
The public relation officers 64 handle the non-gaming related needs of the customers 48. They are the ones who provide additional services to ensure a high level of customer 48 satisfaction. The public relation officers 64 act as an on-site customer service relationship manager for the junket operator 42. They are also responsible to settle expenses arising with the respective gaming facility and thereafter collect from customers such expenses incurred.
Each junket operator employee is issued with the portable memory storage device 38, e.g., a RFID card. Each portable memory storage device 38 is tagged to the roles and authority level as in the JLS 10. For example, since a junket representative 52 is not allowed to perform the role of an insurance taker 60, the portable memory storage device 38 issued to the that particular junket representative 52 is encoded to only perform the related functions specific to an insurance play.
The JMTM 12 provides defined roles in a junket operation. Together with the TRET 14, the JMTM 12 enables the fulfillment of service requests in a structured, secure and reliant control method to mitigate possibilities of error or fraud/collusion while enhancing operational effectiveness.
TRETWith reference to
As shown in
The TRET 14 provides a fundamental business to business to customer (B2B2C) solution. It provides the mechanism for the junket operator 42 to be able to keep track of 1) all the information for the members involved in the junket operation, including the customers 48, appointed agents or collaborators 46, and 2) all the transactions including rolling, settlements, etc., to evaluate business opportunities for strategic business growth. For example, the TRET 14 may perform one or more of the following functions:
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- track and trace identities of customers and appointed agent and collaborators;
- track gaming preferences of customers;
- track the preferred services and level of service expectations of customers;
- track the gaming habits of customers;
- evaluate the business volume related to the individual customer, appointed agent or collaborator and/or gaming facility;
- evaluate needs and preferences as the basis to establish loyalty of customers, appointed agents or collaborators;
- trace and reward customers according to the prescribed scheme, appointed agents or collaborators for their patronage to increase their loyalty;
- trace and facilitate targeted marketing campaigns.
The TRET 14 provides the B2B2C solution by adopting an “across-the-line-approach,” which means that the TRET 14 methodology is applied throughout the JLS. With the TRET 14, every transaction made by customers 48 can be completed via a portable memory storage device 38, e.g., a RFID card and a computing device 36, e.g., a ADA, to ensure a comprehensive secure and transparent method. As a result, a complete transaction history is available to anyone that has the authority to access to the information.
As shown in
In one example, a customer 48 logs into his or her personal account via a web portal and makes a booking inquiry for room reservation at a casino resort for a specific date. The customer 48 indicates his or her preferences, such as smoking room, gaming table request and gaming table limits preferred and credit terms request, etc. After the JLS 10 provides the information in response to the inquiry, the customer 48 may accept the terms for the reservation. All details are logged into the JLS 10 and the requests are sent to the relevant operating units of the junket operator 42. Upon arrival at the casino resort, the customer 48 is then provided with the services as requested.
When the customer 48 checks in for his or her gaming action, a portable memory storage device 38, e.g., a RFID card is issued to the customer 48 tagged with the approved available credit terms and the approved non-negotiable chips value. After the customer 48 starts to bet at the reserved gaming table and roll his/her non-negotiable chips, the gaming facility pays the customer 48 with cash chips for every winning hand. The customer 48 accumulates the cash chips and exchanges the cash chips for an equivalent amount of non-negotiable chips with the junket representatives 52.
During settlement, i.e., closing of gaming account, the computing device 36 is used to establish the amount due from/to the customer 48 after taking into consideration of the initial buy in, credit drawn, rebate of commission accumulated by the customer 48, amount of chips returned and non-gaming expenses; such as hotel charges and meals incurred. The information of all these activities is transferred from the computing device 36, e.g., a PDA, to the databases in the junket operation servers 26 for rating and evaluation.
JLM SubsystemWith reference to
To accord loyalty points to customers 48, the following five factors are taken into consideration:
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- the rolling of the particular customer,
- the front money buy in amount, wherein, the front money buy in amount is the cash or credit that customers provide to enroll in the junket programs with the junket operator.
- early settlement of outstanding debts,
- frequency of using junket services, and
- usage frequency of junket web portal services and/or visits to the website.
The loyalty rewards of the JLS 10 are provided based on the gross profit margin, which is approximately 30% of the total rolling for the non insurance play portion.
The loyalty points are used as a tool to enhance customer loyalty and increase repeat business. The loyalty points can be accumulated. In addition, the loyalty points are visible and transferable Also, various levels of point conversion ratios are available for loyalty points redemption. The loyalty points can be redeemed in total or in part at any point of time by customers 48. The JLM subsystem 16 calculates rewards and the target incentives commission.
The evaluation process of the JLM will encompass the JLM subsystem 16 using the “across-the-line-approach” to evaluate the data gathered from various touch points using TRET 14.
The junket operator 42 pays monetary rewards in the form of Junket Dollars based on a pre-determined commission rate multiplied by the rolling of the particular junket trip for both the agents 46 and customers 48. The junket operator 42 also pays monetary rewards based on one or more tiers of net turnover to be achieved by agents 46 and customers 48 and this is known as Junket Bonus Dollars.
An example below explains how the Junket Dollars or Junket Bonus Dollars are used in the operation ground and how they are represented.
Example 3Assuming that:
For clarification purposes, if the agent 46 and customer 48 achieved an aggregate turnover of more than 80 million and 30 million respectively, the bonus commission in term of percentage for agent 46 will be additional 0.2% (0.1%+0.1%) and that is equivalent to $160,000 (80,000,000*0.2%) for the Junket Bonus Dollar on top of the 1.3% and that is equivalent to $1,040,000 (80,000,000*1.3%) for the Junket Dollar, and the customer 48 receives additional 0.3% (0.2%+0.1%) on top of 1.1% (Junket Bonus Dollar equivalent to $90,000, and Junket Dollar equivalent to $330,000).
The above takes the assumption that the customer 48 transacted directly with the junket operator 42 but not under the agent 46.
As for the Junket Points, it will be assigned to customers 48 transacted either through agent 46 or directly with the junket operator 42.
The Junket Points costing allocation will be up to Y % of the junket operator's gross profit and is known as Y$.
For customers 48 that transacted directly with junket operator 42, the weighting is as follows:
Credit Term Customer(i) Junket Points-Fold Factor (Up to 60% of Y$).
A performance value known as the “fold value” is determined from dividing the turnover by the credit arrangement per trip i.e., dividing the customer's rolling against the approved credit amount of the customer. Fold value provides a meaningful reading that allows the junket operator to assess the risk and returns. For example, if customers A and B had a credit facility arrangement with the junket operator of $300,000 each, and the monthly turnover generated by customer A and customer B were $5 million and $10 million respectively, these will give the fold value of 16.66 for customer A and 33.33 for customer B. Of the two fold values, customer B is preferred because of the higher business volume customer B generates for the junket operator given the same credit risk, which is $300,000 in this case.
By using the fold value and referring to Table A (fold factors), a predetermined set of fold factors can be obtained. The approved credit used in the description of the term “fold factor,” as used in this disclosure, means full credit amount approved for utilization. The Junket operator will consider as a risk factor regardless whether customer 48 utilizes fully the approved amount. For example, if the approved amount is $500 k but only $300 k has been utilized during the trip, $500 k will be used to ascertain the fold factor.
(ii) Junket Points-Payment Factor (Up to 30% of Y$).
Payment made by customer 48 before the due date will benefit more under this scheme. The predetermined payment can be found in Table B (as payment factor).
(iii) Junket Points-Frequent User Factor (Up to 10% of Y$).
The factor can be easily derived by dividing the number of booking made through the Internet portal by the total number of trips made.
(i) Junket Points-Cash Factor (Up to 90% of Y$)
Cash factors are predetermined set of value set against the cash buy in amount, as illustrated in Table C.
(ii) Junket Points-Frequent Services User Factor (Up to 10% of Y$)
For the frequent user factors, pleases refer to the above explanation.
For customers 48 that transact under agent 46, the weight allocation may be as follows:
(i) Junket Points-Turnover or Rolling Factors (Up to 90% of Y$)
As the financing is done by agent 46, customer 48 payment, cash buy in and the fold factors are discarded in the rewarding of Junket points. High rollers should be rewarded with Junket Points to retain his or her loyalty towards the junket operator 42. Pleases refer to table D for the turnover and rolling factors.
(ii) Junket Points-Frequent Services User Factor (Up to 10% of Y$)
See Same Explanation Above
Based on all the assumptions in the examples, a scenario is created for a better understanding how each of these factors can play a part in generating the Junket Points.
Four customers 48 namely “A”, “B”, “C” and “D” went on their first casino junket trip for that month. Both customers 48 “A” and “B” played on cash term and “A” transacted directly with the junket operator 42, whereas “B” transacted under agent 46 Z. Customers “C” and “D” played on credit terms, and “C” transacted directly with junket operator 42, whereas “D” transacted under agent 46 Z.
Assuming that the junket operator 42 allocates 20% percent of the gross profit (GP) to the Junket Points, Table E summarizes the rewards and loyalty accordingly:
Assume all customers are without outstanding (win). In this example, nobody lost at the end of the gaming trip therefore, no outstanding debt.
For Jb$, GP, Y$ and Jpts, they will be computed on every month end.
The Table E figures are generated on trip basis for illustration purposes.
As illustrated in Table E, customer 48 “A” is a direct customer of the junket operator 42 and transacted a buy in of cash $100,000. At the end of the trip, the turnover of “A” was $500,000. “A” booked the junket trip through Internet portal. The Junket Dollar that “A” received was $5,500 {turnover×commission (1.1%)}. There is no Junket bonus dollar for “A” however, if the aggregated turnover reaches or exceeds the monthly turnover target, a Jb$ can be awarded as it can be accumulated till month end. Junket operator's 42 gross profit derivate from “A” was $2,500 (1.6%−1.1%=0.5%, then 0.5%×500,000). The Y$ 500 (2,500*0.2) is calculated by 20% of the gross profit. The Junket Points of 500 points are awarded. As illustrated in Table C, the cash factor is 1.0 (90% of Y$), and the frequent user is also 1.0 (10% of Y$), therefore, “A” is entitled for 100% of the Y$ which in the case is 500 points.
Customer 48 “B” is a customer of agent 46 Z and transacted a buy in of cash $100,000. At the end of the trip, the turnover of “B” was $600,000. “B” manually booked the junket trip. The Junket Dollar for “B” was transferred to the account of agent 46 Z therefore “B” will claim from agent 46 Z when the junket operator settles with agent 46 Z. The Junket Dollar paid to agent 46 Z is based on the transaction of “B” which was $7,800 (turnover×commission−1.3%). Junket Bonus Dollar for agent Z was $1,200 {600,000×(0.1+0.1)%}—the aggregated turnover of “B” and “D” are above the monthly turnover target of 80 million. Junket operator's 42 gross profit derived from agent 46 Z was $600 (1.6%−1.5%=0.1%, then 0.1%×600,000). The Y$ 120 (600×0.2) is 20% of the gross profit. The Junket Points awarded to customer “B” was 108 points. As illustrated in Table C, the cash factor is 1.0 (90% of Y$), and the frequent user factor is zero, therefore, the entitlement for “B” for Junket Points was 108 points {1.0×(90% of 120)}.
Customer 48 “C” is a direct customer of junket operator 42 and was given an advance credit facility of $5 million dollars. At the end of the trip, the turnover of “C” was $35 million. “C” manually booked the junket trip. The Junket Dollar that “C” had received was $385,000 (turnover×commission−1.1%). Junket Bonus Dollar for “C” was $105,000 {35 m×(0.1+0.2)%} since the monthly turnover target was achieved. Junket operator's 42 gross profit derived from “C” was $70,000 (1.6%−1.1%−0.2%−0.1%=0.2%, then 0.2%×35 million). The Y$ 14,000 (70,000*0.2) is 20% of the gross profit. The Junket Points of 5,880 points are awarded by: the fold value=7×(35 million/5 million), and by referring to Table A, the fold factor is 0.7. Therefore, 60% of Y$ (weight)×0.7 fold factor (0.6×14,000×0.7) is 5,880 points, and the frequent user is zero.
Customer 48 “D” is a customer of agent 42 Z and was given an advance credit facility of $10 million. At the end of the trip, the turnover of “D” was $85 million. “D” booked the junket trip through Internet portal. The Junket Dollar for “D” was transferred to the account of agent 46 Z therefore “D” claims from agent Z when the junket operator 48 settles with agent 46 Z. The Junket Dollar paid to agent 46 Z based on the transaction of “D” was $1,105,000 (turnover 85 million×commission−1.3%). Junket Bonus Dollar for agent 46 Z was $170,000 {85 m×(0.1+0.1)%}−the aggregated turnover was above the monthly turnover target of 80 million. Junket operator's 42 gross profit derived from agent 46 Z was $85,000 (1.6%−1.5%=0.1%, then 0.1%×85 million). The Y$ 17,000 (85,000×0.2) is 20% of the gross profit. The Junket Points awarded to customer “D” was 17,000 points. As illustrated in Table D, the turnover of rolling factor is 1.0 (90% of Y$), and the frequent user factor is 1.0 (10% of Y$), therefore, “D” is entitled for 100% of the Y$ which in the case is 17,000 points.
The above examples and scenarios explain how factors such as the payment, cash, fold, frequency, and turnover factors, can influence the way which loyalty points or Junket Points are awarded to customers 48. The tables are tabulated not only for the purpose of illustration but also to explain the logic of how these factors are used in generating Junket Points. Junket Points might not be restrictive to customers 48 (both direct and indirect) only, but also can be applied to the agents 46. Software programming logic can be implemented to replace the simple tables so that a wide range of options are available. One or a combination of any of the factors can be used to generate Junket Points for direct or indirect customers 48 and even agents 46.
JCRM SubsystemThe JCRM subsystem 18 is adapted to gain insights into customer data that are continuously collected, updated and analyzed for effective and intelligent use and to accomplish business strategies and objectives. The JCRM subsystem 18 helps maintain customers 48 by providing high standard customer services by anticipating and satisfying customer requirements. The JCRM subsystem 18 gathers data from one or more of the following touch points:
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- junket operator's 42 web portal (for reservation inquiries, account inquiries, etc.)
- junket representatives 52/controllers/operation managers 50
- appointed agents or collaborators 46
- customer contact center/customer service center
- gaming facilities 44
- partner program center, which is a partner programs operated by 3rd parties for loyalty points exchange/redemption, e.g., redemption of junket loyalty points for air-tickets or show tickets or limousine transfers, etc., where an agreed loyalty points to dollar value translation rate is pre-established.
- other 3rd party touch point centers
In addition, the JCRM subsystem 18 includes a web portal to serve its multi-tier multi-type of customers 48.
The relevant information used in JCRM 18 includes the following:
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- customer profile (such as full name, contact/email address, age, profession, passport details, etc.)
- family profile (such as family members, age, school, spouse profession, etc.)
- traveling habits and preferences (such as mode of transportation, meals, hotels, frequency of visits, etc.)
- leisure activities (such as hobbies, sports, etc.)
- gaming preferences (such as game type, minimum/maximum bet, preferred gaming facility 44, etc.)
- financial profile and historical transactions (such as average insurance play bets, credit facilities/terms, win/loss results, repayment history, historical rolling amount, etc.)
With reference to
As illustrated in
In one embodiment, the DIP subsystem includes a junket operation server 26, a computing device 36 including a process and a machine-readable medium storing a program that, when executed, can cause a processor to perform at least some of the described process and a portable memory storage device 38. Accordingly, a junket operator 42 provides an insurance play or side betting via the DIP subsystem to its customers 48 by offering an option for betting on one or more aspects of a player's or of another customer's play in a game. The insurance play helps enhance the turnover and hence the revenue of the junket business and gives customers 48 some control over a game play so that the customer 48 may mitigate the risk of losing a bet with insurance play.
In one embodiment, a bet may be directly related to whether one or more specific game incidents occur, for example, player wins. In an alternative embodiment, a bet may be related to an aggregate of events, for example, whether the total money won by customers 48 at a casino is greater today than it was yesterday.
If the game is a card game, a customer 48 may bet on any or all of the following: a) what the next card revealed will be; or b) what the outcome of the hand will be, e.g., house wins, house busts, player wins, player busts, tie, player A will have a better hand than player B, customer 48 will have a better hand than player A and so on. The hands can be of the same player over time or of a set of players, e.g., bet on the aggregate of all current blackjack players against the house to determine if more players win than lose.
Further, there can be several such bets throughout the course of a hand. For example, there can be an initial bet before the customer 48 knows his or her cards, and another bet when the customer 48 knows his or her cards but all the dealer cards have not been revealed. If the game is a slot machine, the customer 48 can bet that a particular pattern of symbols will show after a pull of the slot machine. If the game is roulette, the customer 48 can bet that the outcome is a particular number or will strike a grouping of numbers.
In some embodiments, a bet may be based on the opposite outcome in a game incident from that outcome of the game incident on which the bet was placed. For example, a customer 48 may bet that a particular game incident will occur, but receives a payout if the game incident does not occur.
The insurance play may be provided via any wired or wireless JLS.
In one embodiment, the DIP subsystem 20 may include a computer processor that is capable of offering insurance play or side-bet for any card games, such as baccarat, blackjack, pontoon, casino war, etc., by calculating the probability of wining or losing a particular game hand that is based on the hand that had already been exposed. The programming logic will include rules for that particular card game, such as Caribbean stud poker, baccarat, blackjack, pontoon, casino war, three card poker, Spanish 21, etc., where insurance play or side-bets are offered.
The computer programming will be designed for a universal card game processor in calculating the customer's risk of win or loss of a particular game session with a computing device 36, e.g., a PDA, which executes the program instruction. The program instruction will include the instruction to calculate the pre-determined payout odds, the bet and the performance value associated with the game session.
The computer program may further include instructions to keep track of cards drawn from the shoe and is exposed to deduce the balance of cards remaining unexposed in the shoe to calculate the probability of the next card drawn based on the balance of cards remaining in the shoe to calculate the pre-determined payout odds, the bet and the performance value associated with the game session.
Depending on the rules of the card game, e.g., baccarat, either the house card or the player's card are exposed first, insurance play can be offered to the player(s) who bets on that particular card game hand or to anyone else not betting on the particular card game hand. The player(s) that bets on the particular card game hand and anyone else not betting on the particular card game hand are collectively referred to as “customers” as long as they bet on at least an insurance play. The value of the cards is inputted into a computing device 36, e.g., a ADA, to display the payout odds. The odds is offered and accepted or rejected. When the odds is accepted, the insurance play will compute the win/loss of Insurance when the next card(s) is/are exposed. By definition, players' cards refer to the cards that are drawn out from the shoe and given to the player depending on whether the player has bet on the Player Box or Banker Box.
In an alternative embodiment, insurance plays are offered in black jack card games. The rules for black jack require that the player's cards are to be exposed first before the house cards. The value of the players' cards exposed is “read” by a computing device 36 and the payout odds are displayed. Insurance play is then offered to “customers”. Insurance play may also be offered to “customers” when the house cards are exposed.
It is to be understood that insurance plays are also offered for other card games such as mini baccarat, midi baccarat, big baccarat, Caribbean stud poker, black jack, Spanish 21, casino war, three card poker, pontoon, etc., where the card values are inputted by using various methods, such as a card reader that reads the playing card drawn from the shoe, voice recognition, visual recognition or manual input into a computing device 36, e.g., a PDA, etc.
Likewise, a computing device 36, e.g., a PDA, a portable storage memory device 38, such as a RFID card, and a coding in the program instruction can be used to determine the credit line of the customer 48.
DIP can be offered to anyone regardless if a wager is made on the particular card game by any customer 48.
Anyone can play DIP at the casino or play DIP online for live interactive gaming environment via the internet.
As part of the JLS 10, the DIP subsystem 20 is operated by the junket operator 42 in association with various games. As shown in
The BIP evolves around a scheme of arrangements depending on the cards drawn/exposed at the gaming table. There are also possible risk management options for the customers 48 depending on the cards that are almost exposed by them. These cards drawn and exposed/almost exposed will generate certain pre-determined odds and risk mitigation options can be offered to the customers 48 for betting.
Alternatively, various joint venture arrangements between the junket operator 42 and the appointed agents or collaborators 46 or even the customers 48/bettors themselves are used for the DIP subsystem 20. The collaborator hopes to improve the return while maintaining the same level of risk (credit facilities). As for the customer 48, he hopes to hedge the position between gaming facility against BIP win or loss. In this way, the junket operator 42 and the appointed agents or collaborators 46 can share profits and risks in the BIP operation. The joint ventures can be pre-established prior to the game or prior to the gaming trip and the duration of the joint ventures can be the same as the duration of the gaming trip. Typically, a maximum amount is set up for limiting the joint venture operation. The joint venture arrangements are usually unknown to the customers 48 and dictate the final profit/loss of all the odds options betted by the customers 48 after the customers 48 decides to stop gaming.
The BIP is either offered verbally and subsequently inputted into the computing device 36 such as a PDA or inputted directly into the computing device 36, e.g., a PDA, to generate the pre-determined payout odds. The computing device 36 may include a sound input portion and a coding configured to recognize speech to interact with the verbal speech of the user. The computing device 36 may display an indicator associated with the customer's risk of loss on the display of the computing device 36. Advantageously, many of the calculations, e.g., risk of loss and payout odds, are done in real time. Accordingly, the computing device 36 may have a memory that stores predetermined payout odds associated with a game play, and instructions having a method that includes determining current odds associated with the game session based on the predetermined payout odds, determining a bet made by the customer 48 in the game session, determining a performance value of the customer 48 that is associated with a customer 48 play history, and calculating the customer's risk of loss from the predetermined payout odds, the bet, and the performance value. Thus current odds can be calculated and managed at pre-determined payout odds depending on the cards exposed/almost exposed in real time during game play.
The BIP may be offered in two ways, e.g., in a baccarat game. A fast paced BIP is defined as when there are two or more customers 48 betting on the BIP on the same hand of the game with the same payout odds offered. A slow paced BIP is defined as a customer 48 betting on the BIP with an Insurance taker 60 attending to that customer 48.
The computing device 36, e.g., a PDA, including specific software applications are used in both fast paced BIP and slow paced BIP.
In the fast paced BIP, BIP bets are initially accepted verbally by an insurance taker 60 and then inputted into the computing device 36, and the results of the IMP bets are recorded on the portable memory storage device 38, distributing the wining/losing amount to each customer 48 who participates in the BIP play.
As shown in
In another embodiment, three customers 48 A, B and C placed their betting individually at the baccarat game. All the three customers 48 decided to bet on the Banker Box. The customer 48 that has placed the highest bet (let's assume it is customer A) will have the privilege to squeeze the cards. The gaming facility dealer passes the banker cards to customer A, where A squeezed the cards which have the total sum of 8 points. While the player's box cards are still unexposed, the insurance taker 60 offers BIP options with an odd of 1 pay 7. Customer C declines and customers A and B accept the offer by insuring $2,000 and $1,000 respectively. At this stage, the insurance taker 60 with the computing device 36, e.g., a PDA, keys in:
(a) odds of 1 pay 7;
(b) the aggregated sum of insurance bet $3,000($2,000+$1,000);
(c) acknowledgement from the insurance taker 60 by tapping the portable memory storage device 38, e.g., an RFID card on the card reader of the computing device 36, e.g., a PDA.
All these are carried out before the gaming facility dealer exposes the Player Box cards. Then, customer A will ask the gaming facility dealer to expose both the Player Box cards. There may be three possible results after the Player Box cards are exposed by the gaming facility dealer:
Sum Digit for Player Box is 9 Points—Banker Loses
The insurance taker selects the LOSS button on the computing device 36 and the aggregated amount needed to credit into customers A and B is shown on the screen as $21,000 ($3000×7). Of the aggregated amount of $21,000, $14,000 ($2,000×7) is credited into customer A's portable memory storage device 38 by tapping it on the computing device 36, e.g., a PDA, with the acknowledgement from insurance taker 60 by tapping his RFID tag on the same computing device 36. The next $7,000 ($1,000×7) is credited to customers B's portable memory storage devices 38 in the same procedure as just mentioned to complete the distribution to end the BIP game for this particular instance.
8 Points—Tie Bet, as a Result, Both the Banker and Player have a Draw
The insurance taker 60 selects the TIE button on the computing device 36 and this insurance taking is recorded as tie with acknowledgement by tapping customers A and B and the insurance taker 60's portable memory storage devices 38 on the computing device 36, e.g., a PDA, to end the BIP game for this particular instant.
Sum Digit for Player Box is 0 to 7—Banker Win
The insurance taker 60 selects the WINNING button on the computing device 36 and the aggregated amount needed to debit from the customers A and B is shown on the screen as $3,000. Of the aggregated amount of $3,000, $2,000 is debited into customer A's portable memory storage device 38 by tapping on the computing device 36, e.g., a PDA, with the acknowledgement form insurance taker 60 by tapping his or her RFID tag on the same computing device 36. The rest $1,000 is debited from customer B's portable memory storage device 38 in the same procedure as just mentioned to end the BIP game for this particular instant.
In an alternative embodiment, the slow paced BIP is played by high rollers. In this instance, the insurance taker 60 will have sufficient time to input the individual customer's BIP bets into the computing device 36, e.g., a PDA, and respective portable memory storage devices 38 before the baccarat game results are known.
In one embodiment, assuming that customer A is playing alone at the gaming table with the insurance taker 60. Customer A places his or her bet on the Player Box. With the betting chips placed on the Player Box on the baccarat table, the gaming facility dealer will than draw cards out with the cards faced down from the gaming shoe in accordance to the baccarat rules as follows:
-
- 1st card to Player Box, followed by
- 2nd card to Banker Box, followed by
- 3rd card to Player Box followed by
- 4th card to Banker Box
When this is completed, both Player Box cards are handed to customer A and Banker Box cards are retained by the gaming facility dealer. This is because customer A had placed his bet into the Player's Box. All the four cards are still facing down and not exposed.
Customer A may squeeze the cards. The sum digit for the Player Box cards is 6 points (4+2) and the insurance taker 60 selected the button PLAYER shown on the screen of the computing device 36, e.g., a PDA, key in the point of individual cards that had been exposed by the customer A. With the set of predetermined odds loaded in the computing device 36, the computing device 36 prompts that an insurance offer is available with an odd of 1 pays 3. When the customer A decides to take the offer, insurance taker 60 takes the following actions:
-
- (a) key-in the amount that customer has purchased for the BIP, which is $2,000;
- (b) acknowledges on the computing device 36 by tapping the portable memory storage devices 38 of both the customer A and insurance taker 60 on the card reader of the computing device 36.
The customer A then instructs the dealer to expose both Banker cards. If the aggregated sum of the Banker cards is 7, 8 or 9 points, the Bankers hand wins. It will be a tie game if the Banker aggregated sum is 6 points. According to baccarat rules, the Banker then needs to draw a 3rd card if the aggregated sum is 0, 1, 2, 3, 4 or 5. When the Banker's 3rd card is exposed, Banker wins if the aggregated sum of the three cards are 7, 8, 9, ties with the Player if the sum is 6, loses if the sum is 0, 1, 2, 3, 4 or 5.
For illustration purpose, assuming that the Banker has an aggregated sum of 2 points with 3 cards exposed (initial 2 cards with 1 and 3 points, and the 3rd card exposed is 8 points, where the aggregated sum for the Banker hand is 2 points) and the Player hand wins, the insurance taker 60 takes the following actions:
-
- (a) selects the BANKER button for value of cards entry;
- (b) key-in cards value 1, 3 and 8 (with the in-built program, the computing device 36, e.g., a PDA, recognizes that the insurance taker 60 wins the bet);
- (c) on its screen, the computing device 36 prompts the insurance taker 60 to debit the amount of $2,000 from the customer A's portable memory storage device 38.
This transaction is concluded by tapping the portable memory storage device 38 for both the customer A and insurance taker 60 to end the BIP game for this particular instant.
An embodiment for DIP subsystem for BIP includes the computing device 36 and the portable memory storage device 38. The computing device 36 is loaded with application packets for insurance odds calculation; and a pre-determined baccarat insurance odds table for manual input of cards drawn. The computing device 36 is designed for both the fast paced BIP and slow paced BIP. The application packets are loaded into the computing device 36 to calculate the insurance odds, the offer of BIP value waged and the potential pay-out value.
The cards being drawn at the gaming table are inputted into the computing device 36 by using the following methods and systems:
-
- voice recognition
- card image converter
- video streaming/display capability
- manual input
Depending on the outcome of the final results of a particular hand, the customer 48 that have made the decision to exercise the risk management options either wins or loses at the gaming table while the odds option selected either loses or wins respectively. Such continuous purchasing of odd options by the customer 48 allows the insurance taker 60 to track the customer's preferences and results at the gaming table and the cumulative results of the options selected. The total value of options taken including the cumulative win or losses of such exercise are tracked. The customer 48 are rewarded and provided with incentives for monetary and/or non-monetary value for redemption during or after the gaming trip.
As each customer 48 is issued with a portable memory storage device 38, all transactions performed by the customers 48 can be “touched” onto the computing device 36, to be encoded and retained within the portable memory storage device 38 until such time, when the customers 48 wish to check, verify, settle their dues/winnings and/or their non-monetary earnings, e.g., loyalty points.
The portable memory storage device 38 acts as customers' ledger that records and retains all the transactions made. The portable memory storage device 38 allows the customers 48 to encode their preferred Personalized Identification Number (PIN) for security reasons.
For every odd option betted, the customers 48 are required to “touch” his/her portable memory storage device 38 on the computing device 36, e.g., a PDA. These transactions are also required to be double confirmed by the insurance taker 60. The double confirmation is carried out by “touching” the insurance taker's portable memory storage device 38. “Touch” or “touching” does not necessarily require physical contact. Accordingly, the portable memory storage device 38 and the computing device 36 may be configured to interact at a range of proximate distance without the requirement of an actual physical contact. This business method provides an unparalleled secured business method of service fulfillment between odd options exercised by the customers 48 with the insurance taker 60 to the individual established player ledger for the customers 48 to exercise their rights to manage their perceived risk at the gaming table.
The information encoded and contained in the portable memory storage device 38 will enable the customers 48 the ease of accessing these data on a real time basis which will thus eliminate any doubts/ambiguities regarding the odd options exercised. It forms the basic foundation in providing information to customers 48 and/or appropriate relevant authorities a reliable, trustworthy and transparent business method of recording and confirmation. The transactions contained within the portable memory storage device 38 to the individuals within the group or groups can be segregated, grouped, sorted accordingly.
The syndicated scheme of arrangement agreed upon will track, evaluate and trace these individuals (whom may belong to a group or groups that belong to the collaborators) transactions and business method will ascertain the end result of this scheme of arrangement.
The insurance play offered by the junket operator 42 can also be betted in the following scenarios by using the portable memory storage device 38. The card can be pre-sold with a pre-loaded value and the drawdown occurs whenever a bet is made by the cardholder. The card can also be topped-up whenever the stored value drops. To purchase additional top-up, the customers 48 can adopt the following:
-
- drawdown on the existing credit facilities;
- request for credit extension;
- using cash, personal check or credit card;
- cash chips or non-negotiable chips.
The portable memory storage device 38 can be initially issued to customers 48 with zero value (on credit terms). At the end of the junket trip, customers 48 with positive value on the card is considered to have won in insurance play will be paid accordingly by the junket operator 42 while cards with negative value are considered to have lost in insurance play and the customers 48 are required to settle with the junket operator 42 within the agreed credit terms.
RLDIP SubsystemIn one embodiment, the JLS may include a RLDIP subsystem 17. The RLDIP subsystem 17 is adapted to insurance play gaming data such as dollar bet by the customer, losing dollar bet, winning dollar bet, cumulative amount lost by the customer minus bettor payout, cumulative bettor payout plus bettor loss, every wining on payout dollar, for both the agents and customers of the junket operator.
Depending on the final results of a particular hand, the customer 48 that have made the decision to exercise the risk management options either wins or loses at the gaming table while the odds option selected either loses or wins respectively. Such continuous purchasing of odd options by the customer 48 allows the insurance taker 60 to track the customer's preferences and results at the gaming table and the cumulative results of the options selected. The total value of options taken including the cumulative win or losses of such exercise are tracked. The customer 48 is rewarded and provided with monetary and/or non-monetary incentives.
The RLDIP for BIP business method includes the following elements:
-
- BIP-RR (rebate on revenue)—for every dollar bet by the customer 48 regardless of the results of the bets;
- BIP-RLH (rebate on bettor losing hand)—for every losing dollar bet by the customer;
- BIP-RWH (rebate on bettor winning hand)—for every winning dollar bet by the customer;
- BIP-RNL (rebate on net loss by bettor)—for cumulative amount lost by the customer minus bettor payout; and
- BIP-Rolling (rebate on rolling)—for cumulative bettor payout plus bettor loss.
- BIP-RPO (rebate on bettor payout)—for every wining on payout dollar by the customer
The insurance taker 60 is a very crucial element that will contribute to the success or failure of the BIP trade.
As shown in Tables F and G, in one embodiment, the RLDIP subsystem helps provide rewards and enhance the loyalty of customers/BIP bettors.
The primary factors or values extracted from these transactions that are useful to generate rewards and contribute to the RLDIP subsystem 17 are identified. These are:
By using a primary factor or a combination of primary factors (basket factors), different set of RLDIP programs can be generated or archived. Some examples are as followed:
Protecting the JLS 1 0 by using any of the primary factor or any combination of basket factors used to input into the RLDIP is important. Table G is created based on the results as shown on Table F. The percentages are not the actual range that is to be protected, but used for illustration purposes only.
Examples below uses the data from both Tables F and G.
A customer participated in the BIP games, and with net revenue of $6,000. It does not matter if he wins or loses on the BIP games, but will be given:
If the customer's losing hand is $5,000, the customer is awarded:
If the customer has a wining hand (the revenue that is involved when the bettor wins on BIP and not the wining payout) is $1,000, the customer is awarded:
If the customer loses $2,000 (redemption is valid only when the customer loses), the customer is awarded:
If the customer's BIP-Rolling is $8,000, the customer is awarded:
If the customer's BIP-RPO is $3,000, the customer is awarded:
From the above six examples, the rewards and loyalty amount ended up with the same value, which should not be the case. This happened because a backward calculation method is used and assuming that reward, loyalty and BIP wining is always at $900, $100 and $2,000 respectively. Taking the $2,000 wining amount and translating it to be 100%, assign 50%, 45% and 5% to the retained wining, rewards and loyalty respectively. This is how the percentage figures in Table G are derived.
As shown in Tables H, I, J and K, in another example, the RLDIP subsystem provides other examples for providing rewards to customers 48/BIP bettors and enhancing the loyalty of customers 48/BIP bettors.
The amount of rebate shown in Table K varies by using different factor or basket of factors. This will enable customers 48 or bettors to choose one, which fits his needs. Generally, these can be explained by:
The percentage range indicated in Table G is for illustration purposes only. Most importantly, it is to realize how it can be associated to Table F.
The JLS 10 allows the customers 48 to manage their perceived risk by offering certain pre-determined odds option. If the customers 48 so exercises the option offered by the insurance taker 60, then the customers 48 may request that the dealer exposes the cards for the Banker. The sum digit of the customers' cards is compared to the sum digits of the Banker's cards to determine the results of the bet and risk option taken up. If the sum digit of the customers' cards is lower than the sum digit of the Banker's cards or vice versa, the rule of the game dictates that either the customer 48 and/or house are required to draw additional cards each. In this scenario, the cards will be drawn according to the tableau.
The odds option offered to the customers 48 is generated from the computing device 36, e.g., a PDA, and the customers 48 can then take up this offer to manage the perceived risk.
The RLDIP subsystem 20 will continuously track the odds option betted by customers 48 and outcome of each and every hand at the baccarat table game. The customers 48 can then be rewarded accordingly through loyalty points, BIP-RR, BIP-RLH, BIP-RWL, BIP-Rolling and BIP-RPO. Without this Business Method, rewards and business loyalty cannot be achieved.
JCM SubsystemAs illustrated in
The JCM evolves around the following unique gaming related key features to improve the credit standards of junket operators:
-
- establishment of credit facilities based on if any collateral is provided, quantitative and qualitative analysis of real dynamic data of customers' gaming behavior and repayment pattern;
- establishment of a credit extension evaluation system based quantitative and qualitative analysis of real dynamic data of customers' behavior and repayment pattern;
- establishment of a periodic credit review management system that will impact the credit facilities and credit extension limits;
- establishment of a credit rating system for junket customers, appointed agents or collaborators.
The establishment of credit facilities by the JLS 10 is categorized into unsecured credit facilities and secured credit facilities described more in detail below.
Unsecured Credit Facilities:Providing unsecured credit facilities is largely dependent on simple credit evaluation of the quality of the customers 48. Critical personal information is required in order to determine the quality of the customers 48:
-
- background Information;
- profession;
- assets Owned, such as house, motor vehicle, etc.
- gaming history, if any;
- quality of recommendations by existing customers;
- quality of referrals by appointed agents or collaborators, if relevant;
- any other information such as credit card credit limit, etc.
The JLS 10 dictates that the unsecured credit facility accorded to first time customers is usually capped between $5,000 to $50,000 as this would enable the customers to have sufficient credit for a typical gaming trip of between 1 to 5 days duration.
The frequency of providing unsecured credit facilities to individuals is relatively much higher as compared to secured credit facilities. However, the business generated (rolling/turnover) from this is comparatively lower. The risk involved in uncollectable debts is lower and is generally spread.
Secured Credit FacilitiesProviding secured credit facilities may sound less risky. However, the JLS 10 recognizes the fact that customers 48 expect higher credit facilities for the amount of security that is provided by them. The JLS 10 only accepts cash as a form of collateral in order to provide higher credit facilities above the security amount provided.
The rule-of thumb for the junket operators 42 is to provide this type of credit facilities up to a maximum of $1 for every $1 of security provided. For example, if a customer 48 provides US$100,000 security in the form of banker's check, the junket operator 42 may provide a maximum total of US$200,000 ($100,000 from the security plus $100,000 from credit facilities) non-negotiable chips (dead chips) to the customer 48 for gambling.
However, the JLS 10 defines that the secured credit facilities is provided from two angles:
-
- first time customers
- Repeat customers
This rule-of-thumb applies only to the first time customers that are direct customers, i.e., non-referred customers. The first time referred customers are accorded with 50% up front credit facilities against the security provided with an additional 50% standby credit facility during the gaming trip. This standby credit facilities provided is only allowed for drawdown by the customers if the customer 48 lost 80 to 90% of the initial non-negotiable chips disbursed.
This is will enable the junket operators 42 to use TRET 14 and JAR 24 during the trip to access the gaming habits and playing capacity of the particular customer 48.
The usual simple credit evaluation on the customers 48 is conducted to ascertain the background information and profession.
For Repeat Customers, the JLS 10 would have adequate information on the gaming and payment attributes of the said customers 48 that will be derived from TRET 14, JAR 24 and JCM to ascertain the amount of secured credit facilities to provide.
The JCM is configured to cap at a maximum of 2 times the amount of security provided. For example, if the repeat customer 48 provides a security of $1 million, the amount of secured credit facilities will be capped at $2 million. Meaning, the maximum total non-negotiable chips that can be provided to the customer 48 is $3 million ($1 million from security provided plus $2 million from credit facilities).
The TRET 14 and JAR 24 will provide the quantitative analysis of customers' previous 12 month's, moving average of real historical data and the JCM will translate such analysis into the amount of secured credit facilities to accord.
The data, amongst others include:
-
- the average bet of the customer per hand played;
- the duration of the customer's play;
- the type of table game limits preferred;
- the volume of business (rolling/turnover) generated and the win/loss at the gaming table;
- the amount of insurance play betted and the win/loss of such bets;
- the repayment period taken to settle any outstanding gambling debt;
- the frequency of return trips (loyalty).
Credit extension is defined as the amount of additional credit amount provided by the junket operator 42 to its customers 48 after the normal credit facilities has been exhausted. This is another form of credit provided which is unsecured.
The credit extension of the JLS 10 evolves around the establishment of the customer's 48 most recent gaming habits and payment capacity. The customer's 48 past 3 month's real historical data, including the current trip that has been made available by TRET 14 for JAR 24, are analyzed and translated for JCM to establish the amount of credit extension to provide for the current trip.
The real data, amongst others include:
-
- the average bet of the customer per hand played;
- the duration of the customer's play;
- the type of table game limits preferred;
- the volume of business (rolling/turnover) generated and the win/loss at the gaming table;
- the amount of insurance play betted and the win/loss of such bets;
- the repayment period taken to settle any outstanding gambling debt;
- the frequency of return trips (loyalty).
The credit extension amount is primarily derived from the following factors. Weights are placed to define the relevancy of these factors:
-
- repayment rating—a rating system to define the customer's repayment ability on a twelve months rolling timeframe;
- extension Risk—to define the current affordability level of the customer by using the last three months debtor turnover ratio (in days);
- rolling capacity—to define the customer's strength in generating business for the previous twelve months rolling timeframe and measured as a reference against the random pool of existing customer by using the Bell Curve for quartile distribution;
- current debt—measurement of the amount outstanding, if any, above the normal credit facilities and for how long this debt has been outstanding;
- insurance play intensity—measurement of customer's playing intensity in insurance play as not all customers are inclined to exercise their risk management when playing games. Those that do will invariably require a higher credit.
The credit extension exercise is highly reliant on these factors for the JLS 10 to ensure higher credit standards. These factors will provide a structured rating on the variables of each and every customer 48 to ascertain their credit worthiness against the capital available to match the needs of the junket operator 42 to generate more business.
As insurance play is a unique and intrinsic part of the JLS 10, the factor of insurance play is used as a multiplier of the amount of credit extension value to provide. It distinguishes whether the customer 48 is an insurance play player or not. It identifies and rewards insurance play players with higher value of credit extension. It measures the insurance play playing intensity of the customer 48. It is calculated as follows:
insurance play factor=total insurance play bets/total amount rolled
The amount of credit extension is capped at a maximum of 100% of the credit facilities. For example, if the customer 48 had initial credit facilities of $1 million for the current trip, the maximum amount of credit extension will be capped at $1 million.
The JLS 10 requires a credit review to be conducted. The JLS 10 adopts a credit term of 7 to 14 days repayment period from the date of closing of account. Credit review consists of conducting a process of reviewing the credit facilities of the customers 48, appointed agents or collaborators 46 that will be triggered by any of the following events that have taken place whichever occurs first:
-
- when a single default in repayment of outstanding debt occurs;
- when a request is received to defer the cashing or lodgment of any personal check (that was presented to settle outstanding account) to the junket's bank account for clearance for more than once;
- when any personal check (that was presented to settle outstanding account) is rejected/returned by the junket's bank account for whatever reason for more than twice;
- when a default in repayment of outstanding debt to any gaming facility or any other junket operator occurs and is known to the junket operator 42;
- when a default in repayment of outstanding debt occurs and placed on installment plan;
- when a default in the agreed installment plan to settle the outstanding debt occurs for more than twice;
- a maximum of 3 months period from the time of the account is closed for the last gambling trip;
- the credit review will evaluate the timeliness of repayments and adjustments will be made henceforth to the Credit Rating of the customer 48, appointed agent and collaborator. This will favorably or unfavorably impact the amount of their respective existing credit facilities.
The junket credit rating system established for the junket operator 42 includes the rating of the customer's credit worthiness based on the ability to generate business that is tied to the gaming capacity and payment capability.
The business generated includes the Rolling at the gaming facility and the insurance play betted with the junket operator 42.
This rating system is unique as it rates the customers 48, appointed agents or collaborators 46 based on an evaluation system of real historical data. The data that have been collated by the various facets of the JLS 10 are analyzed and interpretations made to establish the grade of the customer 48.
For example, a customer's cumulative rolling is $100 million per annum and the cumulative insurance play betted is $2 million. These were achieved from a total credit utilization of $5 million. Therefore, the total business generated is $102 million per annum with a factor of 6.8 ($102 million divided $5 million).
The customer 48 has an established credit term of 14 days and average debtor turnover for this customer 48 is 12 days, this customer 48 will be rated as AA7, as shown in Table L, where x is equal to the established credit term.
This will denote that the customer 48 is one grade better than the norm for payment capacity while generating a factor of 7 business volume for the junket operator 42.
As another example with the same amount of cumulative rolling and credit utilization but with a different average debtor turnover of 18 days, then the customer 48 is rated BB7, where the customer 48 has a grade of below average than the norm for payment capacity while generating a factor of 7 business volume for the junket operator 42.
JAR SubsystemWith reference to
The JAR subsystem 24 performs the following functions:
-
- maintains and computes all entitlements (monetary and non-monetary) to customers 48, appointed agents or collaborators;
- maintains and computes monthly entitlements for the junket operator 42 to reconcile with gaming facility operators;
- maintains and computes rewards and incentive schemes for employees.
The JAR subsystem 24 encompasses the maintenance of the agreed terms of commission, loss rebates, credit facilities, insurance play JV Scheme, loyalty points, etc. to be attached to respective customer 48, appointed agents or collaborators 46.
All transactions by the customers 48 will be tracked, evaluated and traced to the correct accounts. The JAR 24 will compute all entitlements accurately and assign them to the correct accounts to dispel any ambiguities, confusion and arguments. It will also provide the necessary audit trails for checking and confirmation. Competent authorities will also be able to gain access for compliance auditing, if needed.
A unique feature of JAR 24 is the ability to use the JMTM 12 to associate customer preferences in utilizing a preferred junket representative 52 for their gaming trips. As gamblers have a unique behavior that is high on emotions, meeting customer's needs and preferences is an important factor in creating customer satisfaction and repeat business. The JMTM 12 within TRET 14 will enable employees to be rewarded through incentives schemes. The JAR 24 will maintain the mechanics of employee incentive schemes and accord necessary rewards to employees.
JAR 24 will enable the junket operator 42 to establish a unique rewards scheme for their Insurance Takers by providing incentives purely related to insurance play. This rewards scheme is based on the amount of insurance play that customers 48 purchased whereby C % is provided to the insurance taker based on the total amount of insurance play that the Insurance Taker accepts through the computing device 36, e.g., a PDA.
In addition to this, it is considered a norm for customers 48, appointed agents or collaborators 46 to tip all junket representatives. JAR 24 will be able to track all tips accepted and calculations are made based on pre-approved distribution method for disbursement to all eligible junket representatives.
The JAR 24 will be able to provide meaningful statistics and audit trails for the junket operator 42 to establish and measure their business key performance indicators (KPI). Some of these relate to the data collected are:
-
- customers
- total rolling amount;
- average rolling amount per transaction;
- number of rolling transactions concluded;
- total cash out amount;
- average cash out amount per transaction;
- total returned value amount;
- average returned value amount per transaction, etc.
- appointed agents or collaborators
- number of players referred;
- rolling amount achieved against targets;
- credit utilization;
- average rolling amount over credit utilization; etc.
- junket representatives
- total rolling performed;
- average rolling per customer 48;
- number of hours worked;
- number of transactions performed; etc.
- customers
The JAR 24 will the track hours worked by these individuals, compute rewards, incentives and/or profit-sharing for each and every level of junket representatives, controllers and the Insurance Takers, where applicable. They are rewarded by each gaming trip and/or cumulative trips or at any pre-determined duration established.
The described embodiments are to be considered in all respects only as illustrative and not restrictive. The scope of the invention is therefore, indicated by the appended claims rather than by the foregoing description. All changes which come within the meaning and range of equivalency of the claims are to be embraced within their scope.
Claims
1. A method for increasing loyalty of customers, comprising:
- providing a computing device that includes: a processor, a display, a computer readable medium, and a coding configured to calculate loyalty points of the customer;
- determining a performance value of the customer, which is associated with a customer play history, including: calculating an amount rolled by the customer playing a game during a gaming trip, wherein the amount rolled is determined by an amount of cash chips exchanged for an amount of non-negotiable chips;
- calculating the loyalty points of the customer based on the performance value of the customer;
- storing the loyalty points of the customer on the computer readable medium; and
- displaying the loyalty points of the customer on the display.
2. The method according to claim 1, further comprising:
- providing the customer with a portable memory storage device;
- wherein the computing device further includes: a coding configured to determine a credit line for the customer;
- calculating a customer's risk of loss in game session with program instructions that calculate the customer's risk of loss,
- wherein the computing device executes the program instructions,
- wherein the program instructions include: a predetermined payout odds associated with a game play, and a method that includes: determining a current odds associated with the game session based on the predetermined payout odds, determining a bet made by the customer in the game session, determining a performance value of the customer that is associated with a customer play history, and calculating the customer's risk of loss from the predetermined payout odds, the bet, and the performance value,
- displaying an indicator associated with the customer's risk of loss on the display of the computing device; and
- storing a record of the insurance on the portable memory storage device that is configured to be in communication with the computing device.
3. The method according to claim 2, further comprising:
- storing a record of loyalty points on the portable memory storage device, wherein the loyalty points are incremented based on an amount of the insurance.
4. The method according to claim 2, further comprising:
- storing a record of reward points on the portable memory storage device, wherein the reward points are incremented based on an amount of the insurance.
5. The method according to claim 2, wherein the coding configured to determine the credit line for the customer includes instructions to calculate in real time a credit rating of the customer.
6. The method according to claim 5, wherein the instructions to calculate in real time a credit rating of the customer.
7. The method according to claim 6, further comprising:
- calculating in real time the credit rating based on a historical data;
- wherein the historical data includes a debt data, and repayment of debt data;
- determining the credit line for the customer; and
- displaying the credit line for the customer on the display.
8. The method according to claim 2,
- wherein the portable memory storage device is an RFID card.
9. The method according to claim 2,
- wherein the game is baccarat; and
- the game play is baccarat game play.
10. The method according to claim 2, further comprising:
- determining a result value of the customer, that includes: calculating a settlement time of outstanding debt.
11. The method according to claim 2, further comprising:
- determining a fold value of the customer, that includes: calculating a rolling of the customer during a period of time divided by a credit line extended by a junket operator.
12. The method according to claim 10, further comprising:
- determining a frequency value of the customer, that includes: calculating an amount of web portal services used by the customer.
13. A system for increasing a loyalty of a customer, comprising:
- a computing device that includes: a processor, a computer readable medium, and a coding configured to calculate loyalty points of the customer, and calculate a risk of loss, wherein the coding includes: a predetermined payout odds associated with a game play, instructions that determine a current odds associated with a game session based on the predetermined payout odds, instructions that determine a bet made by the customer in the game session, instructions that determine a performance value of the customer that is associated with a customer play history, and instructions that calculate the risk of loss from the predetermined payout odds, the bet, and the performance value; a display configured to display an indicator associated with the risk of loss, and the loyalty points of the customer,
- wherein the computing device is configured to transmit a record of an insurance to a portable memory storage device that is configured to be in communication with the computing device.
14. The system according to claim 13,
- wherein the portable memory storage device stores the loyalty points of the customer, and a record of insurance.
15. The system according to claim 13,
- wherein the portable memory storage device is an RFID card.
16. The system according to claim 13,
- wherein the computing device includes an automatic card image converter.
17. The system according to claim 13,
- wherein the computing device includes a sound input portion and a coding configured to recognize speech.
18. The system according to claim 13,
- wherein the computing device includes a video camera.
Type: Application
Filed: Feb 24, 2010
Publication Date: Sep 9, 2010
Applicant: REDDOT BUSINESS SOLUTIONS LTD. (Singapore)
Inventors: Ah Seng Neo (Singapore), Weng Khoon Yap (UEP Subang Jaya)
Application Number: 12/711,672
International Classification: A63F 9/24 (20060101);
