The Effects of 9/11 on Casino Revenues: A Comparison of Mississippi and Las Vegas

Document Type

Presentation

Presentation Date

2003

Abstract or Description

This research compares the effect of 9/11 on casino gaming revenues in Las Vegas and Mississippi. ARIMA models with intervention and transfer functions are used to estimate a time series model for each market. The models show a significant negative downturn in gaming revenues for Las Vegas post 9/11. A similar downturn in gaming revenues in Mississippi is not observed. Air travel is introduced as an explanatory variable for the negative intervention in Las Vegas. This research shows that air travel has significant explanatory power both pre and post 9/11 for Las Vegas gaming revenues. Implications for casino operators are then discussed.

Sponsorship/Conference/Institution

Southeast Institute for Operations Research and the Management Sciences Annual Conference (SE-INFORMS)

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