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Player’s Club Point Liability
Players clubs are promotional clubs that allow patrons to accrue points which can be redeemed for product or cash. Unredeemed points create a liability for the casino. Properties should accrue for the expense (or treat as contra revenue) associated with those points that will eventually be redeemed as they are earned.
PLAYERS CLUB ACCRUAL Accrual Formula -
Eligible points earned during the period X Factor = Dollar value of such points X
COGS % (for non-Cash redemptions)
X =
Redemption rate
Expense (contra revenue for cash-back awards)
Note: Different properties use different redemption rates and COGS % (typically based on historical analysis)
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Player’s Club Point Liability
Analysis of the Player’s Club Point Liability • How was the liability calculated? i.e. Report from Player’s Club? • Are the points being properly retired/ expired in the player’s club
software in accordance with the established rules? • Is the liability reasonable based on prior periods?
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