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Riverboat casino gambling impacts on employment and income in host and surrounding counties

Karl Geisler () and Mark Nichols

The Annals of Regional Science, 2016, vol. 56, issue 1, 123 pages

Abstract: This paper explores how the introduction of casinos in riverboat states (Illinois, Indiana, Iowa, Louisiana, Mississippi, and Missouri) in the mid-1990s impacted county income and employment. Building on the previous literature, this study extends the analysis beyond the county with the casino to explore the effects experienced by neighboring counties using both a difference-in-differences estimation and a spatial Durbin model. Real per capita county income is found to increase in counties with casinos, while unemployment drops. Neighboring counties also experience significant increases in income, though to a lesser magnitude, while unemployment rates are unaffected. Where adjacent counties each have casinos, a competition effect is found that reduces the impacts below what either county would have experienced without competition. Neighboring counties that have casinos experience increases in income and decreases in unemployment similar to counties without casinos that are adjacent to casino counties. Copyright Springer-Verlag Berlin Heidelberg 2016

Keywords: D4 Market Structure; Pricing; and Design: General; L1 Market Structure; Firm Strategy; and Market Performance: General; R11 Regional Economic Activity: Growth; Development; Environmental Issues; and Changes; R12 Size and Spatial Distributions of Regional Economic Activity (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/s00168-015-0721-x

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The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

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Handle: RePEc:spr:anresc:v:56:y:2016:i:1:p:101-123