Disciplines
Business | Gaming and Casino Operations Management | Gaming Law
Document Type
Original Research Article
Abstract
Using performance data from an Atlantic City hotel-casino, theoretical models are advanced to estimate the effects of a new indoor pool/nightclub on both daily coin-in and table game drop. This study represents the first attempt to estimate the indirect gaming contributions of a new nongaming amenity. The pool/nightclub variable was found to significantly increase table game drop at a rate of $150,500 per day, but it failed to produce a significant effect in the coin-in model. The core model, design, and results described herein are critical to operators and developers alike, as estimating the impacts of new nongaming amenities on key gaming volumes has been a guessing game to date. Thus, this paper offers a way to substantially improve return-on-investment calculations for new nongaming amenities. Although constructed with gaming in mind, the core model could be easily adapted to a variety of leisure service businesses.