A two-step model for organic social media marketing in the casino industry

What the paper says

Purpose This study examines the long-term effects of organic social media marketing (OSM) on both online and brick-and-mortar (B&M) casinos. Design/methodology/approach We propose a two-step framework in which casinos rely on organic content on social media to foster user engagement and trust, followed by transaction-based promotions to deepen customer relationships. Using data from Atlantic City casinos, OSM is modeled as a latent construct, and its effects are analyzed through a three-stage structural equation model. Findings The findings show that OSM generates sustained positive impacts on revenues for both online and B&M casinos while amplifying the effectiveness of traditional promotional expenditures for B&M casinos. Research limitations/implications Our study does not directly measure consumer conversion from organic or paid advertising in the casino industry. The reliance on platform-level rather than casino-specific social media metrics introduces potential endogeneity concerns as observed correlations between social media user shares and casino revenue growth may be spurious. Additionally, our proxy for OSM effectiveness, the residuals derived from the online revenue regression model, has limitations because it does not fully account for other influential factors such as posting frequency, sentiment, and interactive engagement that may also shape online casino performance. Practical implications The study shows that effective OSM engagement is reinforced through organic interest communities, cross-platform interactions, and third-party websites rather than through social media platforms alone. For B&M casinos, integrating OSM with traditional promotions amplifies revenue outcomes. In contrast, online casinos may experience diminishing returns when aggressive promotions undermine the authenticity of organic messaging. Social implications Our research indicates that the two-step OSM campaigns can originate from professional or employment-oriented social media platforms such as LinkedIn and often begin with sports- or entertainment-related E-news before transitioning to gambling content. This blurring of informational and promotional boundary highlights the ethical dilemma of balancing freedom of expression on social media with the need to protect consumers from manipulative and potentially harmful marketing practices–an issue with significant economic and political implications. Originality/value This study demonstrates that a two-step OSM strategy can enhance revenue performance for both online and B&M casinos by addressing the inherent limitations of direct social media marketing. Extending beyond the casino industry, our research contributes to the literature on OSM and omnichannel strategy by developing a theoretical and empirical model that explicates both the direct and indirect mechanisms through which OSM operates in a cross-channel context.