SkyCity casino has admitted loyalty card holders were sent inaccurate and potentially law-breaking promotional material. Photo / Getty Images
Casino's backtrack the second big consumer failure this month after Harvey Norman's cut-price furniture fiasco.
A glitch in SkyCity's systems saw the casino company promise free money to its most valued customers - then have to renege on the deal.
The casino has admitted loyalty card holders were sent inaccurate and potentially law-breaking promotional material which promised more than $100 of free gambling money to those who turned up at the casino last Sunday.
While regular gamblers qualify for "bonus dollar" payments, the money offered on Sunday was much more than the casino usually paid out and even more than the casino was legally able to offer.
It's the second major consumer failure this month after Harvey Norman customers were told they weren't getting furniture mistakenly advertised and even sold at cut-price rates.
At SkyCity on Sunday, frustrated and loyal casino-goer Alan Hall was among the teeming crowd looking to pick up free gaming credits under the casino's "bonus dollars" loyalty scheme.
He said the casino was packed with people looking to redeem the offer of free money.
"Normally the place is only half full or even less. We couldn't get over the number of cars in the car park. There was a huge crowd there trying to get their free play money. I've never seen so many people there on a Sunday morning before."
Mr Hall, along with his partner, were at the casino for a 10.30am Housie game.
The loyalty card promotional material had promised him $70 and his partner $100.
He said they went to collect the money before Housie and were surprised to pick up $40 and $60 respectively.
"I wasn't very happy with it at all - particularly when they tried to fob me off with a $10 meal voucher."
SkyCity has now had to make contact with its loyalty card customers to apologise. The company's marketing manager, Julie Garlick, said some loyalty card members were offered more "Premium Bonus Dollars" than they were entitled to.
She said living up to the deal would see the casino breaking the law. If it made good on the original offer made to customers "we would be in breach of responsible marketing and host responsibility provisions in gaming legislation and our own Host Responsibility Programme", she said.
A spokesman said SkyCity would consider complaints from customers on a case-by-case basis.
The Host Responsibility Programme is the casino's agreed set of rules for dealing with its customers, recognising those who might be at risk of problem gambling and finding ways to deal with issues. The casino said the incentives which could be offered through the loyalty programme were strictly tied to the amount people gambled.
We would be in breach of responsible marketing and host responsibility provisions in gaming legislation.
Ms Garlick said the correct amount of free gaming credits - the "bonus dollars" - had been paid out to those who presented their loyalty cards.
All customers who were affected had been contacted by email or text message.
Customers were offered a $10 food and beverage voucher as an apology.
"This was a genuine error, for which we are very sorry. We are taking steps to ensure this won't happen again," she said.
Auckland University's Professor Peter Adams, of the Centre for Gambling Studies, said loyalty card programmes provided rich data to analyse player habits.
"The casino has full control of the data. It gives them the chance to analyse patterns of play."
He said it was data which public health professionals could use to seek out problem gamblers, if it were made available.
SkyCity had promised in 2007 to develop a software tool which identified problem gamblers. The system emerged again in 2012 as part of SkyCity's offering over the International Convention Centre.
A spokesman for SkyCity said loyalty card data was analysed as part of the company's normal screening for gambling issues.
If you are loyal, then SkyCity is loyal too, but you pay to feel the love - all the way up to the VIP floor.
The casino has five levels of membership for loyalty card customers. The lowest is "Ruby", which gets gamblers free parking, a free drink as long as they are playing and entry into prize draws.
By the time gamblers get the "Platinum", the perks have grown to include access to a restricted gaming floor - with higher betting limits. There is also unlimited city parking, complimentary non-alcoholic drinks, shopping discounts, room discounts and a birthday present.
It doesn't stop there. The Herald interviewed a "Black" VIP loyalty card member two years ago, who was feted with kitchen appliances, linen, free hotel stays, drinks and meals.
Players also get "Premier Points", with every 100 points being worth $1 which can be spent across SkyCity. They can also be used to graduate to new loyalty levels.
Card holders also get "Bonus Dollars", awarded to customers for use on table and electronic games.