Estimating the Impact of Free-Play Coupon Value on Players’ Slot Gaming Volumes

Abstract

This study reports the results of a field experiment that assessed the relationship between free-play coupon value and a player’s slot gaming volume. Selected players in the customer database of a Las Vegas hotel casino received either a $50 or a $100 free-play incentive. Results indicated little effect of coupon value on a player’s slot volume. Indeed, the analysis found that complimentary rooms had a greater effect on coin-in, and complimentary food and beverage had the greatest effect of all. These findings imply that offering a relatively high incentive may not necessarily be more effective than providing a comparable lower incentive value in increasing a player’s slot gaming volume. Instead, casino managers should consider the overall profit picture from a given incentive and assess whether particular players are more responsive to complimentary amenities, such as room, food and beverage.