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Casinos, Hotels, And Crime

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  • WILLIAM S. REECE

Abstract

This paper examines the links among casinos, hotels, and crime using Indiana's counties for 1994‐2004. In estimating casinos' impacts, I introduce a measure of casino activity in addition to variables related to the timing of casino opening. I test whether or not the number of hotel rooms affects crime rates. Increased casino activity reduces crime rates except for burglary, where crime rates rise after a lag. Leaving out a measure of casino activity appears to create a serious specification error. Finally, including problem crime data plagued by incomplete reporting affects the estimated impact of casinos on crime. (JEL R11, L83)

Suggested Citation

  • William S. Reece, 2010. "Casinos, Hotels, And Crime," Contemporary Economic Policy, Western Economic Association International, vol. 28(2), pages 145-161, April.
    • Handle: RePEc:bla:coecpo:v:28:y:2010:i:2:p:145-161
    DOI: 10.1111/j.1465-7287.2009.00172.x
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    Cited by:

    1. Nichols, Mark W. & Tosun, Mehmet Serkan, 2017. "The impact of legalized casino gambling on crime," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 1-15.
    2. Chakraborty Avinandan & Doremus Jacqueline & Stith Sarah, 2021. "The effects of recreational cannabis access on labor markets: evidence from Colorado," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-86, January.
    3. Hyunwoong Pyun & Joshua C. Hall, 2019. "Does the presence of professional football cause crime in a city? Evidence from Pontiac, Michigan," Applied Economics, Taylor & Francis Journals, vol. 51(36), pages 3958-3970, August.
    4. Brad R. Humphreys & Brian P. Soebbing, 2014. "Access to Legal Gambling and the Incidence of Crime: Evidence from Alberta," Growth and Change, Wiley Blackwell, vol. 45(1), pages 98-120, March.
    5. Christopher Clark & Douglas M. Walker, 2009. "Are gamblers more likely to commit crimes? An empirical analysis of a nationally representative survey of US young adults," International Gambling Studies, Taylor & Francis Journals, vol. 9(2), pages 119-134, August.
    6. Hyclak, Thomas, 2011. "Casinos and campus crime," Economics Letters, Elsevier, vol. 112(1), pages 31-33, July.
    7. Man-Keung Kim & Arwin Pang & Wei Bao & Ryan Bosworth, 2016. "Endogeneity in Casino Revenue and Crime Rates: The Case of Las Vegas, Nevada," The Review of Regional Studies, Southern Regional Science Association, vol. 46(3), pages 223-236, Winter.
    8. Douglas M. Walker, 2010. "Casinos and Crime in the USA," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 19, Edward Elgar Publishing.
    9. Markham, Francis & Doran, Bruce & Young, Martin, 2016. "The relationship between electronic gaming machine accessibility and police-recorded domestic violence: A spatio-temporal analysis of 654 postcodes in Victoria, Australia, 2005–2014," Social Science & Medicine, Elsevier, vol. 162(C), pages 106-114.
    10. Michael Wenz, 2014. "Valuing Casinos as a Local Amenity," Growth and Change, Wiley Blackwell, vol. 45(1), pages 136-158, March.
    11. Humphreys, Brad R. & Marchand, Joseph, 2013. "New casinos and local labor markets: Evidence from Canada," Labour Economics, Elsevier, vol. 24(C), pages 151-160.
    12. Falls, Gregory A. & Thompson, Philip B., 2014. "Casinos, casino size, and crime: A panel data analysis of Michigan counties," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 123-132.
    13. Siew Hoon Lim & Lei Zhang, 2017. "Does Casino Development Have a Positive Effect on Economic Growth?," Growth and Change, Wiley Blackwell, vol. 48(3), pages 409-434, September.
    14. Douglas M. Walker, 2013. "Casinonomics," Management for Professionals, Springer, edition 127, number 978-1-4614-7123-3, December.
    15. Aurora MURGEA, 2015. "International Confidence in Italian Economy. A Spread and Gambling Analysis," Timisoara Journal of Economics and Business, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 8(1s), pages 70-89, February.
    16. Yu Liu & Thomas M. Fullerton Jr. & Nathan J. Ashby, 2013. "Assessing The Impacts Of Labor Market And Deterrence Variables On Crime Rates In Mexico," Contemporary Economic Policy, Western Economic Association International, vol. 31(4), pages 669-690, October.

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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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