THE FINANCIAL RETURNS TO CASINO AMENITIES

Authors

  • Douglas M Walker Department of Economics and Finance, College of Charleston
  • Lonnie L Bryant

DOI:

https://doi.org/10.5750/jgbe.v5i1.565

Keywords:

Casino amenities, casino tourism, market structure, return-on-assets

Abstract

Casinos offer an increasing array of amenities (e.g., hotels, restaurants, shows, shopping, and other entertainment). Yet, little information exists on the financial returns to various amenities. We utilize financial returns and casino company department revenue and expenditure data from 24 public casino firms over 23 quarters (2004.1-2009.3) to analyze the returns on investment from various casino amenities. Our findings indicate that investments in expanding casino space and hotels have negative returns; investment in food and beverage has a neutral impact; but investment in other types of entertainment has a positive return.

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Published

2013-01-02

Issue

Section

Articles