The indirect impact of casual dining on low-end gaming in destination and local casinos

The role of casino amenities is an important issue for casino operators and developers seeking to maximize gaming revenues, space utilization, and return-on-investment. The indirect impact of casual restaurant covers on low-denomination slot volume and cash table drop was investigated using daily data from two casinos. One casino primarily served local repeat customers while the other catered to a drive-in tourist business. Using estimates from time-series regression analysis, restaurant covers were significantly related to gaming volumes. The impact of dining volume on low-end slot play was especially strong in the local market casino, resulting in a substantial financial contribution.     

Estimating the impact of entertainment on the restaurant revenues of a Las Vegas hotel casino: An exploratory study

Considering the growing presence of non-gaming amenities in a mature casino market such as the Las Vegas Strip, this study examined the indirect contribution of showroom entertainment to casino-operated restaurant business volumes. Using the internal data of a Las Vegas hotel casino, this research found a statistically significant and positive relationship between daily showroom headcounts and food and beverage revenues. For each additional show attendee, daily food and beverage revenue increased $6.96. This finding suggests that casino executives should consider leveraging show traffic with additional revenue-enhancing venues such as restaurants.     

Examining expanded differences in slot machine pars: An analysis of revenue impacts and player sensitivity to “price”

This work addressed critical questions related to the optimization of all-important slot revenues, as they are critical to the success of most of the world’s casinos. Using data collected from a live gaming floor, the obfuscated pars of otherwise identical reel slot machines were manipulated to determine whether differences in game-level performance and/or player detection would occur. The results indicated significant and substantial increases in revenue for the high-par games, with no clear signs of play migration toward their paired low-par counterparts. These results were produced in spite of the clear disincentive to play the high-par games. This work extended the extant literature by increasing the time to discover the difference in pars to a full year, and by expanding the difference in the pars of the paired games. Additionally, this was the first study to examine the impacts of par differences on actual casino win.     

Examining the indirect impact of showroom entertainment on hourly slot gaming volume: The case of a Las Vegas hotel-casino

With the advent of the destination casino resort featuring multifaceted entertainment and convention venues in the gaming industry, researchers have attempted to estimate the indirect gaming contributions of non-gaming casino amenities such as showroom entertainment and restaurants. The daily data of aggregate gaming volumes analyzed in previous gaming research, however, do not allow exploring transient gaming volumes associated with casino amenities during a much narrower range of time periods (i.e., hourly). The current investigation addressed this limitation by examining the relationship between showroom headcount and hourly slot gaming volume for the time period that fell adjacent to the show's start and end times. Based on the time-series regression analysis of daily data from a Las Vegas Strip hotel-casino, the current study found a positive and statistically significant effect of showroom headcounts on hourly slot volume at 6 p.m., 9 p.m. and 10 p.m. The estimated incremental slot revenue per paid showroom attendee, however, was financially immaterial. Considering major investments in showroom entertainment at many casinos, the current study will help casino operators evaluate the showroom's return-on-investment.     

Emotional intelligence and adaptability – Service encounters between casino hosts and premium players

The premium player segment has been widely acknowledged as the largest single contributor to casino revenues. So-called casino hosts are an important influence on player perceptions of service quality and ultimately on loyalty and casino profitability in their capacity as service representatives servicing this segment. To date little research has investigated the relationship between casino hosts and premium players. This study focused on service encounters between casino hosts and premium players, particularly in the case of relationships between emotional intelligence, adaptability and the service performance of casino hosts. A mediation model involving these constructs was proposed and tested, drawing upon theory and the relationship that has been established between basic personality traits and surface traits. In the current study emotional intelligence was identified as a basic personality trait, and adaptability is viewed as a surface trait. The results arising from a structural equation analysis confirmed the validity of the mediation model and found that the inclusion of adaptability as a mediator into the relationship between emotional intelligence and service performance provided a greater proportion of variance than a model which excluded mediation. Based on the research findings implications for researchers and practitioners were outlined.     

Influences on Video Poker Machine Performance

Abstract

This study seeks to determine if slot machine performance levels are influenced by casino floor location and specific game characteristics. A Las Vegas hotel casino supplied the results of 418, $0.25, video poker machines, which were used to test hypotheses based on the findings of extant performance-potential research and casino management theory. Results from a simultaneous multiple regression model indicate that the core locations of the slot floor, featuring superior access and traffic volume, outperform the perimeter locations. Variables representing cabinet style (i.e., slant-top and bar-top units), par and program are also found to influence a machine's performance, at the .05 alpha level. The resulting equation offers an alternative performance measure that considers the unique operating parameters of a game, moving beyond basic performance comparisons of unit results to category averages (e.g., all $0.05 video poker games).     

With or Without You? Building a Case for Further MICE (Meetings,Incentive Travel,Conventions, Exhibitions) Development in Macao

Macao's gross gaming revenues have increased considerably in the past decade since casino liberalization to more than 6 times that of the Las Vegas Strip (Nevada). Macao's global dominance in gaming revenues is in contrast to Macao's meetings, incentive travel, conventions, and exhibitions (MICE) development. With comparisons to the Las Vegas Strip model of a balance between gaming and conventions, Macao's MICE industry has not advanced in tandem with Macao's casino expansion. Macao's bolstering gaming revenues have presented little incentive for most gaming operators to move beyond, with conventions and exhibitions remaining on the fringes of hospitality offerings as a supporting unit to casino product positioning.

As the Cotai Strip enters its second wave of integrated resort construction an increasing number of MICE, as well as other nongaming venues, will be included within the resort designs. A key vision behind casino liberalization, as well as an expressed wish by the Chinese authorities, is for Macao to diversify its tourism portfolio to include more MICE development. Examining Macao's casino tourism growth trajectory, this article suggests this limited growth in MICE could continue. Isolating key limiting factors, strategic actions are presented in the paper as approaches to further involve and potentially advance MICE development along Macao's Cotai Strip.     

An exploratory study of the relationship between customer-based casino brand equity and firm performance

This exploratory study examines the relationship between customer-based casino brand equity and firm performance using Macau casinos as a sample. The results indicated that better-performing casino brands were associated with greater customer-based brand equity, which comprises brand loyalty, brand image and brand awareness. Furthermore, Asia Pacific-based casino brands in Macau outperformed their U.S.-based counterparts in terms of customers’ perceived quality, suggesting the need for U.S.-based casino brands to better cater for the needs of Macau casino visitors and to localize their services. Future research directions are also suggested.     

A comparative study for determinants of gaming performance in Macao and Las Vegas

This paper studies gaming efficiency with data envelopment analyses (DEA) and its determinants with seemingly unrelated regressions (SUR). We show that gaming efficiency is higher in Macao than in Las Vegas and can be improved in both places. We find that Macao casino performance hinges on China's economic growth and visitor arrivals as well as VIP service and promotional marketing while non-gaming business and slot gaming are contributors to Las Vegas tourism efficiency. We also indicate that the 2008 global financial crisis and the 2014 China anti-corruption movement are hugely disruptive to gaming efficiency both in Macao and Las Vegas. Those results provide policy makers and casino managers with useful implications for efficiency enhancement in gaming-led tourism and hospitality.     

Effects of corporate social responsibility and internal marketing on organizational commitment and turnover intentions

This study examined the effects of four aspects of corporate social responsibility (CSR) (i.e., economic, legal, ethical, and philanthropic responsibility) and five aspects of internal marketing (IM) (i.e., welfare system, training, compensation, communication, and management support) on employees’ organizational commitment (OC) and turnover intentions (TI) in the casino industry. Based on survey data collected from 310 employees working for a casino company, the relationships were examined using confirmatory factor analysis, second-order factor analysis, and structural equation modeling. The results indicate that both employees’ perceptions of CSR and IM are positively related to their OC and negatively to their TI, suggesting that adding CSR programs to existing IM programs is likely to improve desirable employee work attitudes such as OC, which in turn contributes to decreasing TI. This study makes a contribution to the literature by conceptually and empirically evaluating CSR and IM dimensions simultaneously in the casino environment.     

Embracing or fighting the urge: A multilevel investigation on casino service,branding and impulsive gambling

Academics and practitioners are increasingly interested in how branding and service may affect consumer behaviors. In view of intensifying competition in the casino industry, understanding these relationships would help casino operators achieve competitive advantage. The current study draws on the relevant marketing literature, and examines the antecedents, moderators and consequences of consumer buying behaviors, with a focus on impulsive buying in the casino settings. The proposed antecedents are casino service environment and employee service. Customer brand attachment and loyalty behaviors are modeled as consequences, and casino brand equity as a cross-level moderator. A quantitative method was employed for the purpose of this study. The survey was undertaken at 22 major casinos in Macau through a multilevel design. Results show that the casino service environment indeed induces impulsive gambling. Whilst employee service has little influence on impulsive gambling, the effect is enhanced by casino brand equity. Employee service is particularly salient for casinos with low brand equity. Impulsive gambling does have significant influence on loyalty outcomes through the mediating effect of brand attachment. Brand equity also demonstrates cross-level linear and nonlinear effects on the chain relationship, with the linear effect significantly larger. Implications for practitioners and the literature are provided to conclude the paper.     

A Formative Approach to Modeling Residents’ Perceived Impacts of Casino Development

This study uses a formative modeling approach rather than the more common reflective modeling approach to operationalize residents’ perceived benefits/costs. Partial least square structural equation modeling was adopted to model the predicting effects of perceived benefits/costs on residents’ support for casino development. Additionally, the mediating role of satisfaction with life was examined. Drawing from a survey administered to 1047 Macao residents, this study reveals that only perceived economic and environmental benefits affect support for casino development. The mediating effect is not confirmed. Meaningful implications are provided for policymakers and casino operators.     

Can staying overnight affect traveler satisfaction? Evidence from a gambling destination

Given that satisfied travelers tend to become repeat customers and spread positive word of mouth, destinations must induce travel satisfaction to increase their income. Travelers may face increasing physical and mental challenges during their travel that can undermine their travel experience, and staying overnight in a destination can improve the satisfaction of travelers by refreshing their energy. Given its important role in increasing the revenues of certain destinations such as Macau, staying overnight is strongly encouraged among travelers. However, the relationship between staying overnight and traveler satisfaction in the casino context has never been studied. By conducting a survey among 17,742 travelers in Macau, this study explores the moderating effect of staying overnight on the relationship between travel experience and satisfaction. The results indicate that staying overnight strengthens (reduces) the negative effect of visiting frequency (outside-Macau casino experience). However, staying overnight has no moderating effect on such relationship when the negative influence of first-time visit is considered. These findings also provide implications for tourism researchers and practitioners.     

The Relationships Between Casino Quality,Image, Value,and Loyalty

This research builds on the idea that casino customers’ subjective, global judgments of service quality are shaped by experience of its specific attributes, and examines how casino customers form their evaluative attitudes toward the casino experience in the Macau context. Using the data collected from 525 Macau casino customers, we first identify four casino quality dimensions; namely, supporting facilities, staff service, diversity, and equitableness. We then test and validate a proposed model for the structural relationships between casino image (as a consequence of the four quality dimensions), value, and loyalty. In particular, value is shown to be a mediator of the relationship between image and loyalty from the perspective of casino customers. The results of our study can show Macau casino operators what constitutes customers’ casino experiences and aid them in enhancing their image, perceived value, and customer loyalty toward casinos.     

A Re-examination of the Legalization of Casino Gambling from the Japanese Tourist Perspective: A 10-year Review

With the explosion of casino development in the Asia Pacific as well as the USA, casino gambling has become more culturally embraced as a recreational activity. The purpose of this study was to re-examine the legalization of casino gambling in Hawaii from Japanese-speaking tourists' perspective and compare these results with a previous study completed a decade before. With the continuing decrease of Japanese visitors to Hawaii, and with the importance of the Japanese market to Hawaii's economy, state officials are considering other forms of tourism to help revive the Japanese tourism market and increase Hawaii's global competitiveness. By analyzing the responses of the current Japanese-speaking tourists to Hawaii and comparing these responses with the Japanese tourists surveyed 10 years previously (1996), an attempt can be made to determine whether Japanese tourists in 2006 have changed their perception of the legalization of casino gambling in Hawaii. This research examines a number of challenges to consider concerning the legalization of gaming in an established tourism destination such as of Hawaii. Although the findings of this study indicate that the Japanese-speaking tourists have changed their perspective from past studies on the effects that legalization of casino gambling has in Hawaii, future research should focus on other segments of the tourist market.     

Framing corporate social responsibility for a controversial product

ABSTRACT

Firms operating casino businesses such as casino hotels often face scrutiny with heightened suspicion regarding the intent of the corporate social responsibility (CSR) initiative. This study examined how persuasive intent and the CSR issue influenced consumers’ processing of a CSR initiative for a casino hotel. The results of an experiment showed that participants reacted favorably to a CSR initiative, but such positive reactions disappeared when persuasive intent was explicit in the CSR message. This study further explored the underlying mechanism by testing a moderated mediation model in which issue importance in a CSR initiative acted as a moderator.     

The relationship between institutional ownership and casino firm performance

This study examined the relationship between institutional ownership and firm performance in the casino industry from 1999–2003. Given the evidence of the endogeneity of institutional ownership in the casino industry, institutional ownership was found to be a significant and positive determinant of casino firm performance as measured by a proxy for Tobin's Q in a simultaneous equations system. This study reveals that investing institutionally in casino firms may help casino industry investors mitigate the agency problem caused by the separation of management from ownership. In addition, financial institutions tend to invest in larger casino firms with lower financial leverage.     

Service climate and customer satisfaction in a casino hotel: An exploratory case study

Given the global escalation in gaming availability, this paper proposes a service management framework for the study of competitive advantage in casino hotels. Using data collected from 303 employees at an Australian casino hotel, an exploratory case study in service climate and customer satisfaction is presented. The findings suggest that while service climate is highly correlated with customer satisfaction, internal dynamics result in significant differences in the perceptions of casino employees versus non-casino employees, highlighting the need to tailor organisational strategies to different types of employees.     

Gendered construction of Macau casino: a social semiotic analysis of tourism brochures

This paper analyses the represented images of men and women in casino ads of Macau, examines the impact of gender power in the casino industry and discusses the social–cultural construction of masculinity and femininity in a culturally diverse context. A social semiotic analysis of a range of casino brochures and leaflets is presented. The analysis reveals that stereotypical portrayals of gender roles persist in Macau’s casino ads, which privilege the male tourist gaze and reproduce the gender power relations within the hetero-patriarchal system. Despite the trend of women’s involvement in public gambling, casino gambling continues to be upheld as a masculine activity in Macau. The study argues that the casino space is constructed through two aspects – the simultaneous masculinisation of gambling and feminisation of interactive service work, which reflect, respectively, the traditional expectations of the gambling culture and the demands of the modern service-intensive casino business.     

A matrix model for resident attitudes and behaviours in a rapidly changing tourist area

This paper focuses upon the linkages between local resident perceptions of the impacts of a mega attraction, the Foxwoods casino and attitudes toward this casino; toward the tribe (the developers); and toward the casino as an economic development tool; as well as linkages with specific types of resident behaviours. Using data collected from 203 resident telephone interviews, these linkages are explored. Perceptions of casino impacts were found to influence attitudes toward the casino and toward the tribe. A matrix model which has been well referenced in the tourism literature but never before tested, was modified and used to analyse the linkage between attitudes and behaviours. A composite measure of attitude toward the casino was developed and this scale performed well on reliability and validity tests. A simplified version of this scale was applied to the attitudinal axis of the model. The behavioural dimension of the model was created using an index of positive, neutral and negative behaviours. Statistically significant results were achieved for attitudes toward the casino and specific behaviours and for attitudes toward the tribe and these behaviours. However, attitudes toward casinos as an economic development tool showed less significant results.