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This paper expands on the scarce literature about the demand for casino gaming, particularly on electronic gaming machines (EGM). A dynamic panel data model is proposed for estimating the price elasticity of demand for slot machines in casinos located in Argentina. As far as we know, no similar study for Argentina or any other Latin American country has been previously conducted. In our study, the estimation of the elasticity coefficients was carried out by means of a procedure that corrects the construction bias generated by the model, something that has not been applied in the literature so far. The results, unlike most of the literature, show elasticity values greater than one in absolute value. Additionally, elasticities observed for touristic regions were greater (in absolute value) than for non-tourist areas.

The price elasticity of casino gambling: a case study in Argentina