Summary & Purpose

Casino gambling has exploded across the United States over the past 30 years. Both the academic literature and gambling proponents agree that promises of economic development have driven casino policy decisions. While such claims are tempting to policy makers, the academic literature has been largely skeptical of both the methodologies and conclusions of the casino-sponsored research behind them. For such claims to be true, retail sales and employment must grow faster in local economies with casinos than in similar locations without them. Economic theory and academic research suggest that casinos do not attract new money to an area but instead cannibalize existing businesses, leaving the local economy, at best, no better off than before. This study provides a broad test of the economic development claim by measuring the substitution effect of casinos with regression and Growth Curve Model analyses. Census Bureau data allows comparison of growth rates of retail sales and employment between casino and non-casino micropolitan and metropolitan economic areas from 2002 to 2017. To isolate local casino economic impacts, the study excludes America’s four destination-casino states as well as six other states where EGMs (electronic gambling devices, aka slot machines, source of 70 to 88 percent of casino revenues) operate separately from casinos. The study finds little evidence that casinos boost retail sales growth; instead, in the 2007 to 2012 period that includes the Great Recession, retail sales in casino economies shrank at a rate two to three times greater than in non-casino economies. The Growth Curve Model also shows that employment grew at a slower rate in casino economies than in non-casino economies across the entire study period.

Date of Publication or Submission

4-18-2022

DOI

10.18122/pubadmin_data.1.boisestate

Single Dataset or Series?

Single Dataset

Data Format

*.xlsx; *.csv

Data Attributes

U.S. Casino opening dates by county and micropolitan/metropolitan area

Time Period

1995 - 2017

Privacy and Confidentiality Statement

Boise State is explicitly compliant with federal and state laws surrounding data privacy including the protection of personal financial information through the Gramm-Leach-Bliley Act, personal medical information through HIPAA, HITECH and other regulations. All human subject data (e.g., surveys) has been collected and managed only by personnel with adequate human subject protection certification.

Use Restrictions

Users are free to share, copy, distribute and use the dataset; to create or produce works from the dataset; to adapt, modify, transform and build upon the dataset as long as the user attributes any public use of the dataset, or works produced from the dataset, referencing the author(s) and DOI link. For any use or redistribution of the dataset, or works produced from it, the user must make clear to others the license of the dataset and keep intact any notices on the original dataset.

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BOISE STATE UNIVERSITY MAKES NO REPRESENTATIONS ABOUT THE SUITABILITY OF THE INFORMATION CONTAINED IN OR PROVIDED AS PART OF THE SYSTEM FOR ANY PURPOSE. ALL SUCH INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. BOISE STATE UNIVERSITY HEREBY DISCLAIMS ALL WARRANTIES AND CONDITIONS WITH REGARD TO THIS INFORMATION, INCLUDING ALL WARRANTIES AND CONDITIONS OF MERCHANTABILITY, WHETHER EXPRESS, IMPLIED OR STATUTORY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT.

IN NO EVENT SHALL BOISE STATE UNIVERSITY BE LIABLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF INFORMATION AVAILABLE FROM THE SYSTEM.

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