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The Impact of Deregulation on Casino Win in Atlantic City

Mark Nichols

Review of Industrial Organization, 1998, vol. 13, issue 6, 713-726

Abstract: This paper examines the impact of deregulation on the demand for casino gaming in Atlantic City. Specifically, the paper analyzes the impact of expanded operating hours and floor space devoted to slot machines. Using monthly win data between June 1978 and July 1996, the analysis reveals that expanded floor space had a significant, positive impact on win, resulting in an average monthly increase of over \$2 million. This shows the importance of developing a regulatory structure rigid enough to ensure the honesty and integrity of the gaming industry, but flexible enough to allow management to respond to changing market conditions.

Date: 1998
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