A Bayesian Assessment of Casino Promotions

Abstract

Casinos use Cash (Free Play), Direct Mail and E-Mail Blasts, Buffet coupons, and Hotel Marketing among other offers in order to retain their loyal customers and also to invite new players to join their loyalty club. This study assessed the effectiveness of such promotions in terms of generated gaming revenues. Data from two mid-size casinos are used for this purpose. The method of Bayesian general linear models is used to determine the effects of various promotions on gaming revenue streams. Several promotion types were shown to have a significant impact on gaming revenue streams.