Casino revenue and the Illinois smoking ban

Thomas Garrett and Michael Pakko

No 2009-027, Working Papers from Federal Reserve Bank of St. Louis

Abstract: Smoking was banned in all Illinois casinos in January 2008. We explore the effects that the smoking ban has had on Illinois casino revenue and attendance. Our empirical methodology extends and enhances that of previous literature in that we observe a natural experiment in comparing the performance of Illinois casinos with out-of-state casinos (no smoking ban) that share a market with Illinois casinos. Estimates suggest that revenue and admissions at Illinois casinos declined by more than 20 percent ($400 million) and 12 percent, respectively. Calculations reveal that casino tax revenue to state and local governments declined by approximately $200 million.

Keywords: Gambling industry; Tobacco industry; Illinois (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-mic
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DOI: 10.20955/wp.2009.027

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