Measuring the effectiveness of casino promotions

Abstract

There is a lack of published research on the effectiveness of promotions in the leisure services industries. The substantial costs of promotions along with the lack of research prompted this study of casino promotions over a 6-month period. Data are examined via simultaneous regression analysis to determine the effectiveness of large-scale promotions. Promotional periods fail to significantly influence slot volume. The magnitude of prize money is positively related to slot volume, but fails to generate an economically significant impact. The methodology and results of this study will help the managers of leisure service businesses evaluate the effectiveness of their promotions.