The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino
Abstract:This article expands the limited literature on the demand for casino (racino) wagering. The focus of this article is on the interrelationship of the demands for slot machine and horse race wagering at a racino. Wagering demand models were estimated for the two racino products; slot machine gaming and pari-mutuel horse racing. Horse race and slot machine wagering both decreased when a competing casino entered the racino's market area. As in earlier studies, slot machine customers did not, on net, bet on horse racing but horse racing customers did bet on slot machines. Pari-mutuel horse race wagering fell 21% after slot machines were introduced and 16% following the introduction of table games. On the other hand, slot machine wagering increased 13% in the presence of live horse racing and 14% in the presence of import simulcast horse racing. Slot machine wagering fell 8% with the introduction of table games. This has important policy implications if stakeholder shares of table game revenue are different than their corresponding slot machines shares. Those with lower table game shares may lose net gaming revenue if table games do not produce enough revenue to offset the expected loss of slot machine revenue.
Document Type: Research Article
Affiliations: Thalheimer Research Associates, Inc., 107 West Short StreetLexington 40507, USA
Publication date: March 1, 2012