UNLV’s Research Casts Doubt on the Efficacy of Promos and Bonuses in Gambling

Theses of Mr Lucas' Research

Mr Lucas has worked with UNLV since 2001 and has 40 years of experience in gambling. He consults on gaming operations, marketing, and finance. His recent research is based on multiyear performance data from a Western U.S. tribal casino.

Free-play campaigns are mainly utilised to boost user traffic and spending rates, but Mr Lucas’ study proved that such a marketing technique doesn’t deliver the expected returns.

In the first 12 months, 400 visitors gained $15 per week in free play. The punters were divided into 4 groups of 100 in the next year.

Each user team received different amounts of bonuses:

• 1 — $0;
• 2 — $5;
• 3 — $10;
• 4 — $15.

The survey was conducted to check how players would react to the reduction in the reward amount and whether traffic and spending rates would change. According to the results, only 20% of customers without free play stopped visiting the casino. Other focus groups continued to gamble without any changes in frequency.

Mr Lucas highlighted that companies need to find other ways to become unique gaming operators and stand out among rivals. He suggests enhancing customer service and the physical environment, which are factors influencing visiting and spending rates.