Do U.S. Gambling Industries Cannibalize Each Other?

Douglas Walker () and John D. Jackson
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John D. Jackson: Auburn University, Alabama

Public Finance Review, 2008, vol. 36, issue 3, 308-333

Abstract: Many states facing recent fiscal crises have looked to legalized gambling in an attempt to ease fiscal constraints. Although there has been some research on the economic effects of gambling, no study has offered a comprehensive analysis of the interindustry relationships of lotteries, casinos, horse racing, and greyhound racing. In this article, we use seemingly unrelated regression (SUR) estimation to analyze the relationships among gambling industries in the United States. Our results indicate that some industries “cannibalize†each other (e.g., casinos and lotteries, and horse and dog racing), whereas other industries help each other (e.g., casinos and horse racing, dog racing and lotteries, and horse racing and lotteries). The study also examines the effects of adjacent-state gambling and a variety of demographic variables. This analysis provides a foundation for further research on how to optimize tax revenues from legalized gambling.

Keywords: casino gambling; lottery; pari-mutuel gambling; tax revenue; Indian casinos (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:36:y:2008:i:3:p:308-333

DOI: 10.1177/1091142106292777

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