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The Economics of Casino Gambling

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Author Info
William R. Eadington

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Abstract

America's casino industry expanded rapidly in the 1990s, spreading from Nevada and Atlantic City to mining towns, riverboats, race tracks and tribal lands, and moving from isolated resort settings to urban and suburban venues. This article examines economic characteristics of the casino industry, including the evolution of major casino markets, pricing of gaming products, market structures, regulatory constraints, and social and economic impacts attributable to casinos. When competitive, casinos show strong economies of scale and scope, but many new jurisdictions limit the number or size of operations, thus creating substantial economic rents. Allocation of these rents are fundamentally politically determined.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 13 (1999)
Issue (Month): 3 (Summer)
Pages: 173-192
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Handle: RePEc:aea:jecper:v:13:y:1999:i:3:p:173-192

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Donahue, John D, 1997. "Tiebout? Or Not Tiebout? The Market Metaphor and America's Devolution Debate," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 73-81, Fall. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jullien, Bruno & Salanié, Bernard, 2005. "Empirical Evidence on the Preferences of Racetrack Bettors," IDEI Working Papers 178, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  2. Melissa S. Kearney, 2005. "The Economic Winners and Losers of Legalized Gambling," NBER Working Papers 11234, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Matthew J. Higgins & Daniel Levy & Andrew T. Young, 2005. "Growth and Convergence across the U.S.: Evidence from County-Level Data," Emory Economics 0529, Department of Economics, Emory University (Atlanta). [Downloadable!]
    Other versions:
  4. Thomas A. Garrett & Mark W. Nichols, 2005. "Do casinos export bankruptcy?," Working Papers 2005-019, Federal Reserve Bank of St. Louis. [Downloadable!]
    Other versions:
  5. William R. Eadington, 2004. "Comment on Kindt's paper," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 191-196. [Downloadable!]
  6. Young, Andrew & Higgins, Matthew & Levy, Daniel, 2006. "Heterogeneous Convergence," MPRA Paper 954, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  7. Matthew Higgins & Daniel Levy & Andrew Young, 2004. "Heterogeneity in Convergence Rates and Income Determination across U.S. States: Evidence from County-Level Data," Emory Economics 0401, Department of Economics, Emory University (Atlanta). [Downloadable!]
    Other versions:
  8. Richard Thalheimer & Mukhtar M. Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor and Francis Journals, vol. 35(8), pages 907-918, January. [Downloadable!] (restricted)
  9. Earl L. Grinols & David B. Mustard, 2005. "Business Profitability and Social Profitability: Evaluating Industries with Externalities, The Case Casinos," Law and Economics 0509001, EconWPA. [Downloadable!]
  10. Hasret Benar & Glenn P. Jenkins, 2006. "The Economics of Casino Taxation," Working Papers 1057, Queen's University, Department of Economics. [Downloadable!]
    Other versions:
  11. David Paton & Donald S. Siegel & Leighton Vaughan Williams, 2002. "A Policy Response To The E--Commerce Revolution: The Case Of Betting Taxation In The UK," Economic Journal, Royal Economic Society, vol. 112(480), pages F296-F314, June. [Downloadable!] (restricted)
  12. Walther Herbert, 2005. "Optimal Taxation of Gambling and Lotto," Working Papers geewp47, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness. [Downloadable!]
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