The effect of promotion on gaming revenue: A study of the US casino industry

In spite of the growing importance of promotion utilizing non-gaming products in the US casino industry, research on the effect of promotion for casino tourists on gaming revenue has been sparse. Especially, an examination of interaction effects among promotions utilizing non-gaming products on gaming revenue of US casino firms has been rare in the literature. Thus, this study aims to investigate the individual effect from each non-gaming product on gaming revenue in the US casino industry. Further, this study examines interaction effects of each pair of promotions utilizing non-gaming products on gaming revenue. The results of this study show a positive and significant effect of hotel room promotion on gaming revenue. In addition, promotions of hotel room and other businesses except for F&B in combination significantly contribute to an increase of gaming revenue.