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Table games, slot machines and casino revenue

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  • Richard Thalheimer
  • Mukhtar Ali

Abstract

The main focus of this study is to assess the influence of table games on slot machine and total casino revenues. The subjects of the analysis are 24 rierboat casinos in the midwestern states of Illinois, Iowa and Missouri and three racinos in Iowa. A racino is a parimutuel racetrack which also offers slot machine gaming to its customers. Two econometric models were developed, one for slot machine revenue and one for total (slot machine plus table game) revenue at riverboats and racinos. Of particular interest is the effect on slot machine and total revenue of adding table games to the gaming operation. Slot machine revenue was found to increase with the number of slot machines and decrease with the number of table games. Slot machine revenue was estimated to decrease by 11.5% in the presence of 40 table games, the mean number of table games over the sample. Total win was found to increase with an increase in both slot machines and table games. The elasticity of total win with respect to the number of slot machines and table games was estimated to be 0.786 and 0.219, respectively. Total revenue was estimated to increase by 24.5% for an additional 40 table games.

Suggested Citation

  • Richard Thalheimer & Mukhtar Ali, 2008. "Table games, slot machines and casino revenue," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2395-2404.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2395-2404
    DOI: 10.1080/00036840600959891
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    Cited by:

    1. Woo‐Hyuk Kim, 2018. "Performance drivers in the casino industry of South Korea," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 126-134, November.
    2. Richard Thalheimer, 2012. "The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1177-1191, March.

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