How Las Vegas Separates You From Your Cash | The Profit: High Stakes

[Music] this is one of the most storage pieces of real estate in the entire world the Las Vegas Strip in 2017 more than 40 million people came to Vegas and they spent 34 billion dollars I wanted to see how the city works not as a spectacle but as a business so I'm going to spend the entire next three days and 20 thousand dollars of my own money learning how Vegas got so good at separating you from your couch we'll keep track of every cent and imbedding will learn a few secrets along the way [Music] there's no question that Las Vegas is the gambling capital of the u.s. here on the strip for publicly traded companies control 20 different casinos and for them everything is high-stakes most are camera shy but after a lot of negotiations this one opened its doors Caesars Palace I'm really excited look I don't consider myself a high level VIP but they gave me a dedicated casino host anyway mine Steve we're gonna take you over here to platinum VIP check-in we headed over to the front desk I got a room to land a loyalty rewards card because you're a premium guests we've upgraded you to our family party so I could start earning points on all the money I'm about to spend starting with my room we took an exclusive elevator to the 29th floor this is what $3,400 the night will get you this place was unbelievable it had a living room a dining room it felt like a house will be left over water I'm okay thank you okay you don't have this ornate bathrooms to outside bedrooms all decorated to the nines you guys want to move in everybody we're all staying here we're gonna bunk it even the amenities were over-the-top so look I appreciate what you guys did this for me but does this normally happen in a room like this so this is Marcus I'm sorry this is conservative it looks like he went to the grocery store bought everything well Rene did that Rene also came with her room these phone is just for you my own private butler is on call 24/7 how many rooms are you handling right now just yours one per room dedicated to you yes sir but I didn't want to stay in my room I'm here for the action nice to meet you this is roulette do you know where really you're gonna explain it to me I sure will about do you have a rewards card with us I do watch out all right my first dollar of the diamond card is Martina for a quick explanation so you can bet on one number that pays 35 to 1 by the way okay you can bet on two numbers which may 17 2014 1 this is the only spot on the board for five numbers which pays 6 to 1 honestly I had no clue or you can bet on 6 numbers and that pays 5 to 1 but you don't have to remember all that and I should have stopped right there here we go I only lasted three spins Oh 17:32 oh you were close just like that I was out 85 bucks you're not coming out here to invest money to win money to come in here for entertainment purposes that's all it is sorry hey it's right enough entertainment only and you only want to risk and only want to come out here with what you know you might lose and are comfortable with generally what are the odds of you on this particular game the house advantage is higher than most it is absolutely it's not just roulette the house is favored in every single game here thanks for bringing me this one first for the wheel for a town built on games of chance the truth is very little is the chance oh yes I'm great welcome to Caesars family you nice to meet you it's a pleasure to have you here Sean mcburney has been the general manager of Caesars Palace for four years can I get a tour absolutely because I want it I want to get but I want the inside so that's the port as we walk I asked him about that rewards card I got it check-in turns out it's McBurney's secret weapon in exchange for points it allows the casino to track every game I play every meal I eat every cent I spend and every my spending so when I spend on this car mm-hmm they go to the club I go to four restaurants like right in here you're watching that so you know one example you play blackjack later you hand them your card will learn that you like blackjack will learn the level at which you play blackjack and how long you play blackjack that's good that's good so if I spend some money at Nobu at Caesars and swipe my rewards card Caesars captures what I order a glass of wine or a sushi roll that info goes into a computer which predicts what offers might appeal to me maybe a wine tasting or a restaurant program those offers are then sent directly to my smartphone so being able to capture all of those preferences allows us to target market based on your observed interest and preparatory software to do it all yeah all all internal it really is about understanding what is the person that walks through the front door want and how do I get more out of their wallet right that's exactly right and Caesars has got the profiles of millions of loyal customers apparently you have 50 million and 55 million you don't get to 55 million overnight over the course of 50 years Caesars Palace has grown to cover 85 acres of real estate with land currently valued at about 20 million an acre that's worth an estimated 1.7 billion dollars and it all started from right here is that a historical piece from the original from when we opened on August 5th 1962 and it was there it is here never say this is all original and if we walk over here to the left you can see the palace casino original from when the property opened in 1966 just a very iconic part of the casino this is where most of the table games are located table games like blackjack still one of Vegas biggest moneymakers there are nearly 40 casinos around the four-mile-long strip with more than 1,200 blackjack tables the casinos taking an average of $2,000 a day per table that's about 900 million dollars a year from blackjack alone how are they pulling in so much money I got a play to find out are you done I'm Marcus Bennett big as mine I said meet you Benny Figgins has been dealing cards under the dome longer than I've been alive so how long you been here we'd be 52 years Sunday I opened this place up in six to six I started off as a cutscene a porter or should I clean the tables and ashtrays and taking out the trash so blacks couldn't deal on the strip really no you weren't permitted to deal carved yup likes good and yellow and when were you permitted to do it I would say around 71 did they teach you how to do this Caesars Palace set up a program and they sent me to school and I worked my way to the dough and once he became a dealer the who's who of old Hollywood showed up at his table you've met any fantastic people any celebrities yes Sinatra Sammy Davis they play right here hey I played para bunny front Diana Ross Joe Lewis any dealer good enough for Joe Lewis is good enough me that's good okay we're gonna have fun okay let's do it first a few practice rounds you don't need to explain anything 21 baby good do it again okay okay that's tan now I have a deuce short okay now you have a suit always assume that it's a ten underneath okay so what do I have you're 12 okay that's 18 19 or 20 there we go okay we're doing good let me pay you first to be honest losing at Roulette was a distant memory you told me you know how to play this game then I was ready to join a real game with real money can't beat them off this is too easy biggest pet you've ever seen biggest bet I ever seen as 75,000 a hand and today come out of header behind it they came out of here well I wasn't willing to go quite happy come on Benny dumped me at 20 I stayed I was just wondering was you thinking about splitting it when I first went down but I remember what you told right we don't split ten no there you go then he dealt himself 9 12 14 and finally

Channel: CNBC Television

Views: 1,299,938

Rating: 4.0963759 out of 5

Keywords: CNBC, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, las vegas, how las vegas makes money, how las vegas started, how las vegas odds work

Id: _OFXTJd1T-Y

Length: 9min 54sec (594 seconds)

Published: Mon Jan 07 2019