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Do Casinos Contribute to Violent Crime? A Panel Data Analysis of Michigan Counties

Author

Listed:
  • Philip Thompson
  • Greg A Falls

Abstract

A key part of the debate over the current rapid increase in the number of casinos in the U.S. concerns the impact on crime rates resulting from the presence of a casino. In this analysis we use panel data covering all 83 Michigan counties for each year 1994-2010 to investigate whether the existence and size of a casino in a host county or in a nearby county affect the rates of four violent crimes: murder, rape, aggravated assault, and arson. We include a number of variables to control for factors that affect crime more generally. We find that county violent crime rates in Michigan do not rise in the presence of a casino, and in the case of aggravated assault, may actually fall. Previous studies of the impact of casinos on a variety of crimes in a variety of locations have shown mixed results.

Suggested Citation

  • Philip Thompson & Greg A Falls, 2014. "Do Casinos Contribute to Violent Crime? A Panel Data Analysis of Michigan Counties," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 8(2), pages 34-54.
    • Handle: RePEc:buc:jgbeco:v:8:y:2014:i:2:p:34-54
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    More about this item

    Keywords

    casinos; casinos and crime; panel data; crime; violent crime;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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