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Journal of Hospitality & Tourism Research
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Measuring The Effect Of Casino-Operated Restaurant Volume On Slot Machine Business Volume: An Exploratory Study

Anthony F. Lucas

Jocelina Santos

University of Nevada, Las Vegas

Using data from three different North American casino markets, models designed to explain the variance in slot machine business volume (coin-in) produced a significant and positive effect for a variable representing casino-operated restaurant business volume (covers). Simultaneous multiple regression analysis was used to test the audited, secondary data for significance at the .05 alpha level. A 200-day period was examined for each casino property. The results of this study contradicted an earlier, counterintuitive finding by Lucas and Brewer that provided the basis for this work. The related literature is scarce, largely anecdotal, and split regarding the nature of the relationship between restaurants’ and casinos’ volumes. This exploratory study adds valuable empirical results to this limited but growing literature base while highlighting important strategic and managerial implications.

Key Words: slot machines • restaurant management • hotel casino management • casino operations analysis • marketing strategy

Journal of Hospitality & Tourism Research, Vol. 27, No. 1, 101-117 (2003)
DOI: 10.1177/1096348002238883
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