Estimating the effects of casino marketing activities on slot business volume: A model for leisure services businesses

This study researched the effect of marketing promotions on gaming volume (i.e., coin-in). Specifically, this study attempted (1) to gain an understanding of the relationship between specific marketing promotions (slot tournaments, special events, product prize drawings, and no marketing promotions) and gaming volume; and (2) to estimate the magnitude of incremental revenue for each type of promotion. A conceptual model was proposed to examine the effect of the different types of marketing promotions on gaming volume, including two other variables (holidays and day-of-the-week) previously found to influence gaming volume.; Secondary data were collected from a Las Vegas Strip property for this exploratory study which employed a multiple regression model. The no marketing promotions variable had a significant negative effect on coin-in. Holidays and day-of-the-week continued to be significant variables for increasing gaming volumes. The results suggest that it may be a combination of the day of the week, holidays, and marketing promotions that significantly increase gaming volumes.; Promotions should produce a strong spillover effect on slot machine coin-in, producing profits and not just increased revenue.{09}Many casino promotions are not profitable and instead considered loss leaders. With the findings of the current work, casino operators could further evaluate whether their marketing promotions produce sufficient returns on investment. Additionally, this study adds valuable empirical results to the limited literature base associated with the impact of marketing promotions on gaming volume.