Spillover Impact of Non-Gaming Amenities on Gaming Volumes

• Published in: Cornell hospitality quarterly Vol. 60; no. 3; pp. 262 - 269
• Main Authors: Min, Ji Hye, Lee, Harold, Blum, Shane C.
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 01-08-2019
• Subjects: integrated resort management; revenue management; strategic management; profit optimization
• ISSN: 1938-9655; 1938-9663
• DOI: 10.1177/1938965518787453

Considering the popularity of integrated resorts, this study aimed to investigate different types of non-gaming amenities as indirect casino revenue-generating centers. With fierce competition in the casino industry, non-gaming amenities, such as casino-operated restaurants, showrooms, hotel rooms, and retail outlets, are used as a tool to attract customers and generate more casino sales. In this regard, non-gaming amenities need to be evaluated not only by the revenue they generate but also by the indirect revenue they contribute to other amenities such as gaming. By examining casino performance data over a 365-day period, the finding suggested little effect of non-gaming amenities on table gaming volume. However, restaurant and showroom amenities were found to have positive and significant relationships with slot gaming volume. The findings of the study advance the literature as non-gaming and gaming relationships have not been addressed deeply in the literature due to the difficulty of data collection. The study also provides practical insights for operators to increase earnings with the optimal use of non-gaming amenities.