Arriva Card Inc., a unit of Global Cash Access Holdings Inc. that offers credit cards to casino patrons, said Thursday that it would give casinos cash rewards for each account opened through their marketing channel.
The Las Vegas company, best known for operating automated teller machines at casinos, launched the Arriva card last year to reduce interchange costs.
Arriva said it is supplying casinos with marketing materials such as brochures, insertion ads, and Web links.
"We want to demonstrate to casinos how Arriva helps their business, so we're incenting them to help us sign up … experienced casino patrons with strong credit histories," Todd Smith, senior vice president of marketing at Global Cash, said in a press release.
CIT Group Inc. issues the card, which has a credit line of up to $10,000. and offers the same terms, including reward points, for cash advances as for purchases.
Tien-Tsin Huang, an analyst at JPMorgan Chase & Co., wrote in a note issued Thursday that the card generated more than $9 million of transactions in the first quarter.
The loss ratios beat expectations, but activation rates missed them, Mr. Huang wrote.
Arriva "has revamped their marketing and is planning another large mailing in mid-May," he wrote.
