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UNLV Gaming Research & Review Journal

Journal

2024

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Full-Text Articles in Business

Measuring The Impact Of Reduced Free-Play Offers On Casino Loyalty Behavior, Anthony F. Lucas, Katherine A. Spilde Apr 2024

Measuring The Impact Of Reduced Free-Play Offers On Casino Loyalty Behavior, Anthony F. Lucas, Katherine A. Spilde

UNLV Gaming Research & Review Journal

Performance data from a tribal casino operating in the Western United States indicated a general insensitivity to free-play (FP) offer reductions. This finding addresses considerable industry-wide concerns regarding the potential for negative customer reactions to conspicuous offer reductions. Further, FP campaigns are costly annual investments representing the lion’s share of casino marketing budgets in many jurisdictions. A within-subjects design featured the random assignment of 100 loyalty program members from a common offer tier to each of four groups, with the experimental groups receiving different yet substantial reductions in FP during the post-demotion period. The results demonstrated a lack of significant …