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1 – 10 of 233This study aims to examine how differences in the casino advantage (i.e. price) of otherwise identical slot machines affect their revenue production, when the price is hidden from…
Abstract
Purpose
This study aims to examine how differences in the casino advantage (i.e. price) of otherwise identical slot machines affect their revenue production, when the price is hidden from the players. The study aims to identify the ability of players to recognize differences in the concealed prices of paired machines, over time. Both items are paramount to slot revenue optimization.
Design/methodology/approach
Using 274 daily observations, paired-samples t-tests examined whether live performance metrics were affected by the differences in the casino advantage (namely, par) of the paired games. Time-series regression analyses were conducted to understand whether players shifted their play away from the high-par games, over time.
Findings
The results indicated that increased casino advantages produced increased revenue, with no evidence of diminished play on the high-par games.
Practical implications
The results contradicted the inveterate wisdom of the industry by demonstrating that players are not hypersensitive to increased prices/pars, and that such increases can actually lead to increased revenue, despite egregious par gaps.
Originality/value
Added valuable results to a nascent research stream aimed at understanding the effects of obfuscated price/pars. Expanded the gaming literature by increasing the differences in the prices/pars of paired game titles over an increased sample period. Both conditions increased the chances of observing changes in revenue performance, and play migration to the low-par game. Both manipulations have been previously cited as meaningful extensions of the literature.
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S. Ray Cho, Anthony F. Lucas and Ashok K. Singh
This study aims to understand how free-play credits affect risk-seeking behavior in slot players. Extant results suggest they encourage risk aversion, counter to the primary aim…
Abstract
Purpose
This study aims to understand how free-play credits affect risk-seeking behavior in slot players. Extant results suggest they encourage risk aversion, counter to the primary aim of increasing spend per visit. The results inform operators as to the effectiveness of what has become the primary play incentive for casino marketers within many of the world’s markets.
Design/methodology/approach
Within a quasi-experimental grouped design, 365 days of player-level performance data from four different casinos were analyzed to determine whether player losses (casino revenues) and time played differed on visits that included free-play redemptions from those that did not. Hypotheses were tested via paired-samples t-tests and Mann–Whitney U tests.
Findings
On balance, neither player losses nor time played were significantly different on the free-play visits. Neither the house money effect nor the endowment effect was supported. The results were most consistent with the prospect-theory-with-memory editing rule. No findings indicated increased risk-seeking behavior associated with the free-play offers.
Practical implications
Casino operators are afforded insight related to how costly free-play campaigns affect gaming spend and playtime. Both are critical to understanding the impact of free-play on the gambler’s experience.
Originality/value
The 365-day samples extended existing research by analyzing the impact of free-play offers on risk-taking behaviors within the scope of a perpetual/ongoing campaign. Comparisons of observed daily behavior/outcomes were made between separate tiers of like-kind gamblers from each of four different casinos. Quasi-hedonic editing rules were applied to a multistage decision framework.
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Valentini Kalargyrou, A.K. Singh and Anthony F. Lucas
The purpose of this paper is to estimate the effects of onsite restaurant business volume on slot machine gaming volume at a Midwestern racino property. The results provide…
Abstract
Purpose
The purpose of this paper is to estimate the effects of onsite restaurant business volume on slot machine gaming volume at a Midwestern racino property. The results provide management with critical estimates for use in determining the overall value of the restaurant space. Additionally, operators are able to examine whether it makes sense to operate restaurants at a loss, based on the notion that the dining outlets are contributing to gaming volumes.
Design/methodology/approach
Time series multiple regression analysis is used to analyze daily performance data, providing an estimate of the change in the dollar amount of slot wagers resulting from a one‐unit increase in the dollar value of restaurant sales.
Findings
The theoretical model advanced herein explained 81 percent of the variation in the aggregate, daily dollar value of slot wagers. A one‐dollar increase in the variable representing overall restaurant sales produced a $91 increase in slot wagers (or $7.44 in slot win).
Research limitations/implications
Regression analysis does not prove cause and effect. The result was produced from a single data set. Operators are encouraged to examine their own data via the method and model advanced herein.
Practical implications
The results provide management an opportunity to examine whether the slot win associated with the restaurant operations exceeds the operating losses incurred by the restaurants, and, if so, by how much.
Originality/value
This is the first study to examine empirically the relationship between restaurant and gaming business volumes at a racino. Specifically, no published study includes statistically derived estimates of the impact of changes in on‐site restaurant volume on a racino's slot wagering volume.
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Jungsun (Sunny) Kim, John Milliman and Anthony Lucas
This paper aims to explore the sequential effects of employee perceptions of corporate social responsibility (CSR), organizational identification (OI), higher-order…
Abstract
Purpose
This paper aims to explore the sequential effects of employee perceptions of corporate social responsibility (CSR), organizational identification (OI), higher-order quality-of-work-life (HQWL) and intention to stay (IS).
Design/methodology/approach
The survey responses were gathered from employees of a casino hotel company in the USA. All hypotheses were tested via structural equation modeling.
Findings
The results demonstrated that ethical and philanthropic CSR dimensions had significant direct effects on OI and indirect effects on HQWL via OI. OI had positive effects on HQWL (directly) and IS (directly and indirectly via HQWL). Both ethical and philanthropic CSR dimensions indirectly influenced IS via OI and HQWL, while economic CSR had a significant indirect effect on IS via HQWL.
Research limitations/implications
This study addressed the lack of theory-driven empirical work on the relationship between CSR and employee retention by presenting new insights into how different dimensions of CSR can contribute for improving employee HQWL and IS via OI based on social identity theory (SIT) and social exchange theory (SET). In this study, the results may not generalize to other countries and cultures because the data arises from a casino hotel in the USA.
Practical implications
Based on the results, hospitality companies can improve employee OI, HQWL and IS by more effectively implementing different types of CSR programs.
Originality/value
This study provided support for the positive influence of CSR initiatives on hospitality employees in a controversial sector (i.e. casino hotels) in which there is a lack of empirical research.
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Catherine Prentice, IpKin Anthony Wong and Desmond Lam
This paper, from a marketing and management perspective, aims to review the relevant literature germane to casino studies. The review discusses the major findings from previous…
Abstract
Purpose
This paper, from a marketing and management perspective, aims to review the relevant literature germane to casino studies. The review discusses the major findings from previous studies, provides a critique and identifies research gaps for future studies. In particular, the research foci presented in this paper rest on the service profit chain (SPC) model. The review involves studies relating to the constructs of the chain model and comprises sections that are categorized based on the internal link between management and employees, interaction between casino service employees and customers and profitability link.
Design/methodology/approach
The approach used in the current study involves a systematic review of the relevant academic literature with a focus on SPC studies in the casino industry, along with critical evaluation and analysis to identify research gaps. Google Scholar, EBSCOHost, Science Direct, Emerald and other academic databases were used to search relevant studies relating to casino and gambling research streams.
Findings
The review identifies several research gaps on the basis of the SPC link. Specifically, internal service quality needs more attention from both the practice and research points of view. Casino employee research should be extended to include personal traits and characteristics that may contribute to employee performance and loyalty. In the interaction between casino service providers and gamblers, more studies should be undertaken on the efficiency and effectiveness of marketing initiatives and promotions. Externally, the paper points out that more appropriate measurement of customer loyalty and casino profitability should be explored.
Research limitations/implications
This review provides references to focusing on key competitive advantages and presents guidelines on improving business growth and profitability for casino managers. The paper also identifies research areas that future studies should attend to.
Originality/value
The paper is the first thorough literature review of gaming research on marketing and management with a focus on the SPC model. This review represents a new era of gaming research, extending the problem gambling research focus into a broader scope embracing other disciplines.
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Darlene H. Anderson, Michelle Marchant and Nancy Y. Somarriba
ABA has been described as a precise psychological approach to the study of behavior (Bailey & Burch, 2002), involving well-defined principles that can be used in the analysis and…
Abstract
ABA has been described as a precise psychological approach to the study of behavior (Bailey & Burch, 2002), involving well-defined principles that can be used in the analysis and modification of individual behavior (Miltenberger, 1997). Special education, on the contrary, has been characterized as “a customized instructional program designed to meet the unique needs of the individual learner” (Gargiulo, 2009, p. 9). Certainly the two disciplines have much in common; indeed, ABA specifically addresses issues at the focal point of IDEA. For instance, ABA's stance on the right to effective behavioral treatment (Van Houten et al., 1988) is similar to special education regulations regarding the right to an appropriate public education and the right to be educated in the least restrictive environment.
IpKin Anthony Wong, Hoi In Veronica Fong, Aliana Man Wai Leong and Jacky Xi Li
The scant literature on MICE (meetings, incentives, conferences and exhibitions) tourists’ gambling behavior calls for a need to explore how their decision to gamble (hereafter…
Abstract
Purpose
The scant literature on MICE (meetings, incentives, conferences and exhibitions) tourists’ gambling behavior calls for a need to explore how their decision to gamble (hereafter, “gambling decision”) may unfold. Consequently, several questions germane to the inter-relationships among event tourists’ characteristics, casinos attributes, and gambling behaviors remain largely unaddressed. This paper aims to address the void in the literature by investigating event participants’ gambling decision.
Design/methodology/approach
Data were collected based on two samples, and a multilevel design was used to test the proposed model. Demographic and event-related participant characteristics were examined as antecedents of gambling decision at the individual level. Event goers’ accommodation characteristics such as brand equity and type of hotel were explored as cross-level effects on the individual-level factors and relationships.
Findings
Results of the study illustrate a joint influence – in terms of both direct and moderating effects – of individual-level and organizational-level characteristics on gambling decision. In particular, brand equity moderates the relationships leading from demographic and event-related characteristics to gambling decision.
Practical implications
The inter-relationships among events, accommodations and casinos present an opportunity for hospitality practitioners to better integrate these three services in a more coherent experiential offering for the ever-demanding MICE attendees. Findings also help practitioners to justify their targeting strategy.
Originality/value
The proposed framework presents the dynamic nature of the hospitality industry in which the event, hotel and casino sectors are interdependent, a picture hitherto prevented by the single-level oriented nature of gambling and hospitality research which largely focuses on the individual perspective. Given the dynamic nature of the hospitality industry, the findings elucidate a complex interdependency of customer needs.
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