 CASINOS AND ECONOMIC GROWTH: AN UPDATEJournal of Gambling Business and Economics, 2013, vol. 7, issue 2, 80-87 Abstract: As U.S. politicians and voters continue to grapple with the slower-than-expected recovery from the 2007-09 recession, the legalization (or expansion) of commercial casinos has become an increasingly popular policy. Casinos are politically popular because the state government legalizes them, and can thus create a new industry which pays high taxes and may stimulate employment and economic development. Despite the fact that casinos are now widespread in the United States – there are around 1,000 commercial and tribal casinos – the empirical evidence on their economic impacts is still negligible. In two previous studies ( we have tested the relationship between state-level casino revenues and per capita income (i.e., economic growth) to provide evidence on whether or not casinos have a positive economic impact on states’ economies. We have utilized a Granger causality model modified for use with panel data. Our initial evidence, from a paper published in 1998, indicated that casinos do Granger cause economic growth. However, when we re-tested the model using up-to-date data (at the time, through 2005), we found no significant results. The casino industry has grown extensively since 2005, and although the recession of 2007-09 had a negative impact on the casino industry, the national-level revenue numbers are again climbing. We extend our previous analyses in order to provide updated evidence on the economic growth impact of commercial casinos in the United States. Section 2 provides a more detailed background of our previous analysis and an overview of other relevant literature. Section 3 describes the data and model, and provides the results. Section 4 is a discussion and conclusion. JEL-codes: L83 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:buc:jgbeco:v:7:y:2013:i:2:p:80-87 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Gambling Business and Economics is currently edited by Leighton Vaughan Williams, Nottingham Business School More articles in Journal of Gambling Business and Economics from University of Buckingham Press |
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