Aug 1st, 8:30 AM - 9:30 AM


Economies of Scale and the Atlantic City Casino Industry


Research has produced mixed results regarding the presence of economies of scale in the US casino industry. This study replicated and extended two previous studies (Gu, 2001: Marfels, 1995) that examined economies of scale among Atlantic City casinos. Results were mixed. Depending on how size was operationalized there either was or wasn’t evidence supporting scale economies in Atlantic City. These results have implications for future development in Atlantic City suggesting that management processes may be more important in achieving economies of scale than is the simple physical size of the casino floor.