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Do U.S. Gambling Industries Cannibalize Each Other?


Author Info

  • Douglas M. Walker

    (College of Charleston, South Carolina)

  • John D. Jackson

    (Auburn University, Alabama)


Many states facing recent fiscal crises have looked to legalized gambling in an attempt to ease fiscal constraints. Although there has been some research on the economic effects of gambling, no study has offered a comprehensive analysis of the interindustry relationships of lotteries, casinos, horse racing, and greyhound racing. In this article, we use seemingly unrelated regression (SUR) estimation to analyze the relationships among gambling industries in the United States. Our results indicate that some industries “cannibalize†each other (e.g., casinos and lotteries, and horse and dog racing), whereas other industries help each other (e.g., casinos and horse racing, dog racing and lotteries, and horse racing and lotteries). The study also examines the effects of adjacent-state gambling and a variety of demographic variables. This analysis provides a foundation for further research on how to optimize tax revenues from legalized gambling.

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Bibliographic Info

Article provided by in its journal Public Finance Review.

Volume (Year): 36 (2008)
Issue (Month): 3 (May)
Pages: 308-333

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Handle: RePEc:sae:pubfin:v:36:y:2008:i:3:p:308-333

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Related research

Keywords: casino gambling; lottery; pari-mutuel gambling; tax revenue; Indian casinos;


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Cited by:
  1. Humphreys, Brad & Marchand, Joseph, 2012. "New Casinos and Local Labor Markets: Evidence from Canada," Working Papers 2012-16, University of Alberta, Department of Economics, revised 01 Nov 2012.
  2. Peter Calcagno & Douglas Walker & John Jackson, 2010. "Determinants of the probability and timing of commercial casino legalization in the United States," Public Choice, Springer, vol. 142(1), pages 69-90, January.


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