Submitted by: Submitted by aaronabreu92
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Category: Business and Industry
Date Submitted: 10/18/2013 11:53 AM
This report was sponsored by the National Gambling Impact Study Commission to assess the
many studies on the economic impacts of casino gambling/gaming. This assessment includes: a) an
itemization of many considerations affecting economic impacts, b) an evaluation of formal impact
analysis modeling approaches, c) a detailed review of important features of 36 major studies, d) a metaanalysis
of causal determinants, e) a point-by-point summary of findings, f) a set of guidelines for future
studies, and g) a research agenda to close the knowledge gap.
Economic theory and the preponderance of evidence indicate that the aggregate direct and
indirect impacts of the construction, operation, and taxation of casinos are significantly positive.
Broader economic costs relating to such factors as the use of government services and changes in
property values are not insignificant, but they do not come close to canceling out the more conventional
output, income, and employment gains. Moreover, these broader negative impacts might be offset by
some longer-term positive impacts stemming from increased spending of tax revenue on education,
infrastructure, and redevelopment. This assessment does not factor in social costs of gambling, which
are beyond the scope of this study, but warrant careful examination.
This report answers the following questions:
1. Is a casino more like a factory or a restaurant? This analogy refers to the fact that a factory typically
brings in revenue from the outside and is thus able to spur economic growth, while a restaurant
typically serves only residents and primarily recirculates money already in the region. The key issue
is whether a casino serves an external market, and thus the answer hinges not so much on the
inherent nature of the industry but on characteristics of individual facilities.
a. How large is the spending substitution effect of casino gambling resident patrons onsite? This
refers to the extent to which casino...