Examining the Effects of Lottery-style Promotions in Casinos

Document Type

Article

Publication Date

5-11-2018

Publication Title

International Journal of Hospitality Management

First page number:

1

Last page number:

9

Abstract

The efficacy of lottery-style promotions within casinos is explored in this field study. These expensive promotions are ubiquitous within the casino industry, yet their incremental profitability remains questionable. Daily performance data from an Australian casino were gathered over a two-year period, featuring both promotional and nonpromotional periods. Three lottery promotions failed to impact daily slot wagering levels, leaving only the costs to be absorbed by the operator. While few studies have addressed the efficacy of these casino promotions, the broader literature on sweepstakes and promotional games provides several helpful recommendations to improve performance, including the following: Improved targeting, multiple revisions to prize structures, incorporation of skill-based activities, and image-based advertising. All of these dimensions have been identified as effective, yet all were absent from the failed casino promotions. Access to this rarely available performance data added valuable results to both the sweepstakes research stream and the casino management literature.

Keywords

Casino promotions; Casino marketing; Casino management; Sweepstakes; Promotional games

Disciplines

Gaming and Casino Operations Management

Language

English

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