Main Article Content

Douglas M Walker
Lonnie L Bryant


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.

Article Details



American Gaming Association. (2008). State of the States, 2007. Washington, DC: American Gaming Association. Website:

American Gaming Association. (2009). U.S. commercial casino industry: Facts at your Fingertips. Website:

Associated Press. (2010, March 19). Atlantic City casinos see 25 percent revenue decline in first quarter of 2010.

Binkley, C. (2008). Winner takes all. New York: Hyperion.

Burton, R., Lauridsen, J., & Obel, B. (2002). Return on assets loss from situational and contingency misfits. Management Science, 48, 1461-1485.

Calcagno, P., Walker, D., & Jackson, J. (2010). Determinants of the probability and timing of commercial casino legalization in the United States. Public Choice, 142: 69-90.

d’Hauteserre, A. (2000). Lessons in managed destination competitiveness: The case of

Foxwoods Casino Resort. Tourism Management, 21: 23-32.

Denis, D.J., Denis, D.K., & Yost, K. (2002). Global diversification, industrial diversification, and firm value. Journal of Finance, 52, 1951-1979.

Douglass, W., & Raento, P. (2004). The tradition of invention: Conceiving Las Vegas. Annals of Tourism Research, 31, 7-23.

Green, S. (2010, June 22). Moody’s upgrades gaming industry after “marked improvement”. Las Vegas Sun.

Guier, C. (1999). Broadway shows in spotlight. Amusement Business, 11(37), 13.

Harrison-Hill, T., & Chalip, L. (2005). Marketing sports tourism: Creating synergy between sport and destination. Sport in Society, 8, 302-320.

Hennessey, K. (2008, April 6). Is gambling recession-proof? Associated Press.

KXNT, Newsradio 840. (2009, December 11). Gaming revenues fall again. Website:

Lucas, A., & Brewer, K. (2001). Managing the slot operations of a hotel casino in Las Vegas locals’ market. Journal of Hospitality and Tourism Research, 25, 289-301.

Morrison, D. (2010, July 2). California welfare recipients use benefits cards at casinos, strip clubs. Credit Union Times.

Park, M., Yang, X., Lee, B., Jang, H., & Stokowski, P. (2002). Segmenting casino gamblers by involvement profiles: A Colorado example. Tourism Management, 23, 55-65.

Schwartz, D. (2003). Suburban Xanadu: The casino resort on the Las Vegas Strip and beyond. New York: Routledge.

Schwartz, D. (2010). Pennywise, player foolish? State regulation, slot hold, and consumer preference. Paper presented at Association of Private Enterprise conference, Las Vegas.

Tsai, H., Cheung, C., & Lo, A. (2010). An exploratory study of the relationship between customer-based casino brand equity and firm performance. International Journal of Hospitality Management, 29, 754-757.

Walker, D. (2007). The economics of casino gambling. New York: Springer.

Walker, D., & Jackson, J. (1998). New goods and economic growth: Evidence from legalized gambling. Review of Regional Studies, 28, 47-69.

Walker, G., & Hinch, T. (2006). Segmenting casino tourists by mode of experience. Annals of Tourism Research, 33, 568-571.

Yuan, J., Liping, A., Morrison, A.,& Linton, S. (2005). An analysis of wine festival attendees’ motivations: A synergy of wine, travel, and special events? Journal of Vacation Marketing, 11, 41-58.