Aine Akeley

Aine Akeley

University of New Hampshire

Economics


1998

Mentor: Emery H. Trowbridge, Ed. D., Associate of Hospitality Management

The Effects of the Southeast Asian Financial Crisis to the Baccarat Drop in Las Vegas' Major Casino Hotels

The Southeast Asian Financial Crisis is affecting more than Thailand, Korea, Japan, Taiwan, Hong-Kong, the Philippines, Malaysia, Singapore, and Indonesia. It is also affecting the baccarat revenues of strip casinos here in the United States, particularly casinos in the West Coast. My research targets the financial woes in the Far East and its effect to the baccarat tables in Las Vegas, Nevada. The majority of people who play the high stakes game of baccarat in Las Vegas are Asian high rollers. Due to the large number of Asians playing the game of baccarat, my research is attempting to prove that the baccarat drop (the percentage decrease in baccarat revenue) in Las Vegas has been caused by the economic downfall of Southeast Asia. Past studies have attributed the fall of baccarat revenues to the popularity of chemin defer (another card game), to poor luck of junket operators (people who get deals together to entice baccarat clientele), and to the decline of boxing matches in the city of Las Vegas (some people feel that many baccarat players are fans of boxing).

My project will strive to compare the baccarat statistics in Las Vegas and Atlantic City during the time frame of December 1996 to April 1998 while using historical and descriptive methods of research. The historical method includes a qualitative approach and will entail collecting past data and observations (i.e. the past studies mentioned earlier) to challenge my hypothesis. The application of a questionnaire will be used to support my hypothesis, which is a quantitative approach to the descriptive method of my research. I have put together a questionnaire to distribute to the major casinos in both cities to see if there is a higher drop in baccarat revenue in Las Vegas compared to that of Atlantic City. Atlantic City has a far smaller population of Asians playing the game of baccarat measured against Las Vegas figures. Therefore, the results from the comparison of these two cities will enable me to prove or disprove my hypothesis.

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