Title

Improving Casino Performance Through Enhanced Loyalty Programs

Document Type

Article

Abstract

With increased competition and decreased revenues in the gaming industry, casinos have developed and modified their loyalty programs to attract new customers and build customer loyalty. However, often loyalty programs are not evaluated for their effectiveness. Using data from a Las Vegas casino resort, the effectiveness of a new casino loyalty program on gaming volume was examined. The study used time series multiple regression analysis with autoregressive and moving average terms to analyze the effect of the new program on slot coin-in and table game drop. The results indicated that the loyalty program variable significantly increased slot coin-in at a rate of $302,455 per day, but did not significantly affect table game drop. With the findings and model developed in this study, operators can examine whether loyalty programs are producing the desired effects and develop strategies to improve their effectiveness.