Studies to date on the effectiveness of compliment-based promotion by U.S. casinos have frequently found insignificant effect of such promotion on casino revenues. Yet complimentary offers remain the main marketing strategy practiced by the industry. The authors suspect that demand spillover exists among casinos in a market, which causes a spurious relationship. Thus, the current study examines the effects of compliment expenditures on casino demand after accounting for spatial spillover effects. Results of the spatial panel Durbin model analysis suggest that popular complimentary offers, such as rooms, food, and beverages, lead to fierce competition that can be harmful to the entire market. Contrarily, less-used travel reimbursement, bus programs, and free parking help attract new players to the market. Implications for the industry and suggestions for future research are provided with the findings of the study.