The simple answer, Brian, is...
...that locals can stay at the Riviera just as easily as those of us from out of town can if they so desire. We certainly have many other costs involved with getting to Las Vegas and possibly renting in-town transportation. The "penalty" that you perceive will effect anyone at all not staying at the Riviera. The incentives apply as much to locals they do to anyone, so in no way, shape, or form are locals being singled out.