Estimating the Effect of Poker Room Promotions on Player Traffic

This paper examines the impact of poker room promotions on player traffic in casino-based poker rooms. Casinos regularly spend significant portions of their marketing budget on promotions, including free-play, item-based offers, complementary hotel rooms, and travel reimbursements (among others), in an effort to drive casino traffic. Poker room promotions, by contrast, are unique within the context of casino promotions because they are both player-funded and paid in cash. Despite these significant differences between poker room and other casino promotions, prior research has not provided empirical evidence on the effectiveness of poker room promotions. Using collected data on casino-based poker games and poker room promotions over an eight-month period, we present an analysis investigating the impact of common types of poker room promotions on player traffic. Our research conclusively demonstrates a consistently strong positive effect of poker room promotions on player traffic. This research offers a number of important insights not only for the gaming industry, but also for other industries which make use of a variety of promotion types (e.g. retail, hospitality and tourism, etc.)