THE DEMAND FOR CASINO GAMING WITH SPECIAL REFERENCE TO A SMOKING BAN

Richard Thalheimer and Mukhtar M. Ali

Economic Inquiry, 2008, vol. 46, issue 2, 273-282

Abstract: This study adds to the limited literature on the demand for casino gaming. The major focus is on the effect of a statewide smoking ban. A system of slot machine demand equations, one each for the three Delaware racinos (racetrack casinos), was developed. The number of slot machines at a racino, at competing in‐state racinos, and income were significant demand determinants. Competing out‐of‐state gaming venues had insignificant effects on gaming demand over the study period. The smoking ban had a significant negative impact on demand, which was not significantly different across the three racinos. The smoking ban reduced gaming demand 15.9%. (JEL L83)

Date: 2008
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