The Economics of Regulation and Taxation Policies for Casino Tourism

Hasret Benar and Glenn Jenkins ()
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Hasret Benar: Cyprus International University, LefkoÅŸa, Mersin 10, Turkey

Tourism Economics, 2008, vol. 14, issue 3, 483-510

Abstract: A number of states and countries have promoted the development of a casino industry primarily to attract tourists. The policies operated have generally used regulatory or taxation instruments. Such policies may or may not lead to an efficient level of investment and production for the sector. This paper considers four alternative forms of regulatory and taxation policies and examines the interactions between these two sets of investments. The authors find that a turnover tax yields an efficient outcome with a competitive industry and also in the case of a cartel association; but it will be distortionary if a multiplant private monopoly controls the sector. Furthermore, a pure public sector-owned multiplant monopolist is efficient, while a tax on the fixed costs is inefficient if a casino association regulates the sector.

Keywords: casino regulation; taxation; state monopoly; welfare cost (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:14:y:2008:i:3:p:483-510

DOI: 10.5367/000000008785633541

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