An Economic Sensitivity Analysis of Las Vegas Gaming Revenues



Gaming Industry, Recession Proof, Business Cycle, Economic Sensitivity, Logarithmic OLS-HAC Regression, Rolling Correlations


The gaming industry has long been considered recession proof. However, the industry expanded exponentially over prior decades in addition to increasing its exposure to the lodging and conventions industries. The industry also struggled with declining gaming revenue during the recession in 2007. This study uses the Las Vegas region to investigate gaming revenues’ exposure to economic change between the two most recent recessions (e.g. 2001 & 2007). The results show that casinos were more exposed to economic conditions in the latest recession and more sensitive to economic downturns. The results further suggest that increased exposure to lodging may reduce the economic sensitivity of gaming revenue. This study contributes to the industry literature by examining the economic sensitivity of casinos’ gaming revenue considering exposures to lodging and convention industries. The study results can be leveraged to optimize expansion investments and operational decisions in the casino industry.

Author Biography

  • Mark P. Legg, Penn State Berks

    Mark P. Legg, Ph.D. is an Assistant Professor of Hospitality Management at Penn State Berks. His educational background includes a mix of mathematics and hospitality management with a Ph.D. in Hospitality Administration from Oklahoma State University and a bachelor’s and a Master’s degree in Mathematics from SUNY at Buffalo (UB). Mark spent two decades building industry-leading analytical solutions within the hospitality industry while assisting organizations with wriggling out as much value out of their data as possible. His experiences include building out an industry-leading corporate analytics department for an international hospitality organization to directing database, direct marketing, and CRM departments for one of the world’s largest casino resorts.

Economic Sensitivity las Vegas Gaming Revenues - Cover






Academic Study

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