It sounds like it's 2.5 tier points per $1 theoretical loss so a total of $100 theoretical loss. Or $20 coin-in = 1 point on Video Poker so $5000 coin-in, which would be something like $50 theoretical loss.

This isn't too dissimilar from Caesars requiring 100 TC for the Diamond dinner. Unlike Caesars, it doesn't look like you can earn tier points on resort spend, only "slot, table, and online play" would count.

I've previously used the Ocean to Wynn free stay a few years ago, weekends were included which made it a good deal