A study on the impact of entry levies implemented on casinos in Singapore.

Abstract

This study aims to investigate the casino gaming industry in Singapore, in particular the impact of implementing a casino entry levy of either $100 per day or $2,000 per year on (1) the frequency and (2) duration of patrons’ visits as well as (3) their threshold of amount of money lost for each visit.

Economic theories like marginal utility of consumption and sunk costs laid the foundation for the hypotheses in this study, and showed that consumer behaviour varied according to different types and levels of pricing. These theories were then applied in the context of the study to the aforementioned 3 factors.

A focus group interview was first carried out to grasp a more in-depth understanding on public perception towards the levy. Convenience sampling was then conducted using a person-administered survey with casino patrons, and a total of 296 useful survey responses were collected.

Upon conducting a full regression model on the data collected, it has been found that the duration and threshold of loss for those who paid the day-entry levy of $100 increased while frequency of visits decreased, in comparison to if no levy was implemented. For patrons who purchased the annual-entry levy, an increase in frequency of visits and threshold of loss were proven, but no sufficient evidence was present to determine a change in duration per visit.