The multiple effects of a showroom on casino outlets in Las Vegas

In the competitive casino market of Las Vegas, casino operators make efforts to lure more visitors to their properties by offering various live entertainment shows that competitors do not offer. The reviewed literature revealed that showrooms appeared to attract people to the casino floor and, consequently, had significant impact on driving additional casino revenues. However, the literature did not reveal actual evidence that showrooms, which require huge investments and operating costs, actually generate additional revenues to casino hotels. Therefore, the purpose of this research is to investigate the indirect impacts of shows offered in a hotel casino by examining the amount of money spectators spent in the casino and other outlets located in the same property; In eight of the nine hypotheses, the results revealed that there was no significant relationship between the amount of money respondents spent to purchase show tickets and the amount of money spent in the casino hotel. It can be concluded that although some show patrons spent more money on purchasing show tickets than others, it did not mean that they also contributed to more overall casino hotel revenues