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Casinos, Crime, and Community Costs

Earl L. Grinols and David Mustard ()
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Earl L. Grinols: Baylor University, and Terry College of Business

The Review of Economics and Statistics, 2006, vol. 88, issue 1, 28-45

Abstract: We examine the relationship between casinos and crime using county-level data for the United States between 1977 and 1996. Casinos were nonexistent outside Nevada before 1978, and expanded to many other states during our sample period. Most factors that reduce crime occur before or shortly after a casino opens, whereas those that increase crime, including problem and pathological gambling, occur over time. The results suggest that the effect on crime is low shortly after a casino opens, and grows over time. Roughly 8% of crime in casino counties in 1996 was attributable to casinos, costing the average adult $75 per year. © 2006 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2006
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The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

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