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Document Type

Original Research Article

Abstract

A simple regression model is developed to test the relationship between casino floor space as an indicator for bigness and selected financial indicators. Based on data from the Atlantic City market the analysis suggests that scale economies can be experienced by bigger casinos when the total costs of the casino/hotel operation per square foot of gaming space are considered. In contrast, the regression evidence does not point to an advantage of bigness with regard to performance indicators of the casino department itself and, again, based on a per-square-foot analysis. Furthermore, it is shown that there exists a systematic tendency for complimentaries to lead to higher gaming revenues.


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