Bankruptcy prediction in the casino industry

An exploratory study of the effectiveness of traditional bankruptcy prediction models as applied to the casino industry. The study uses financial information from a sample of failed and non-failed casino companies to evaluate the ability of bankruptcy prediction models developed for general industry usage to predict financial failure in the casino industry; The models tested were the ones developed by Edward I. Altman, Edward B. Deakin and Christine V. Zavgren. The financial information utilized in the study was limited to that which could be obtained from publicly available information sources. The sample size was limited to the number of failed firms for which information was available and an equal number of non-failed firms; The study showed that traditional bankruptcy prediction models did not significantly enhance the ability to predict business failure in the casino industry beyond a random fail/no-fail prediction