Double down: economic downturn and increased competition impacts on casino gaming and employment

Abstract

PurposeThe purpose of this study was to create a more balanced, comprehensive and valid illustration of the relationships between casino gaming volume and employment during economic downturns in urban and rural locations in nondestination gaming states.Design/methodology/approachThis study analyzes gaming volumes and employment prior, during and after the recession of 2007–2009, using a time series with intervention analysis on a monthly coin in, table drop and regression analysis on employment impacts of casinos.FindingsFindings indicate that while there was a slight drop in gaming revenue and employment figures during the economic downturn, nondestination gaming locations such as Indiana proved relatively resilient to an economic downturn.Originality/valueThe Great Recession had no significant impact on gaming volume because gamblers chose to spend their more limited entertainment dollars on less expensive gaming options; in other words, casinos closer to home requiring the expenditure of fewer dollars on travel and/or hotel rooms. The current pandemic and pressures of the macro-environment again threaten the US gaming and casino market with an economic downturn and the results of this study are as timely as ever for hospitality professionals and social scientists to understand the behavior of casinos in recessionary environments.