Examining the indirect impact of showroom entertainment on hourly slot gaming volume: The case of a Las Vegas hotel-casino

With the advent of the destination casino resort featuring multifaceted entertainment and convention venues in the gaming industry, researchers have attempted to estimate the indirect gaming contributions of non-gaming casino amenities such as showroom entertainment and restaurants. The daily data of aggregate gaming volumes analyzed in previous gaming research, however, do not allow exploring transient gaming volumes associated with casino amenities during a much narrower range of time periods (i.e., hourly). The current investigation addressed this limitation by examining the relationship between showroom headcount and hourly slot gaming volume for the time period that fell adjacent to the show's start and end times. Based on the time-series regression analysis of daily data from a Las Vegas Strip hotel-casino, the current study found a positive and statistically significant effect of showroom headcounts on hourly slot volume at 6 p.m., 9 p.m. and 10 p.m. The estimated incremental slot revenue per paid showroom attendee, however, was financially immaterial. Considering major investments in showroom entertainment at many casinos, the current study will help casino operators evaluate the showroom's return-on-investment.

Research highlights▶ This study estimated the indirect gaming contributions of showroom entertainment on hourly slot gaming volume for the time period that fell adjacent to the show's start and end times. ▶ It found a positive and statistically significant effect of showroom headcounts on hourly slot volume at 6 p.m., 9 p.m. and 10 p.m. ▶ The estimated incremental slot revenue per paid showroom attendee, however, was financially immaterial. ▶ Considering major investments in showroom entertainment at many casinos, this study will help casino operators evaluate the showroom's return-on-investment.