IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v30y1998i4p531-544.html
   My bibliography  Save this article

Parimutuel wagering and video gaming: a racetrack portfolio

Author

Listed:
  • Richard Thalheimer

Abstract

Parimutuel wagering has been declining for several decades due, in part, to increased competition from state lotteries and casino gaming. In recent years, an attempt has been made to integrate video lottery terminal (VLT) gaming into a parimutuel racetrack's product portfolio. Daily data are used to develop product demand equations for parimutuel horse-race wagering and video lottery gaming at a throughbred racetrack. It is found that introduction of VLTs into the product mix results in decreased parimutuel wagering and revenues. However, the additional revenue generated from the VLTs is found to more than offset the decline in parimutuel revenue and the increased expense associated with the VLTs, given that a sufficient number of terminals are made available. When revenue from the combined parimutuel and VLT gaming product increases, if the respective shares of the VLT revenue distributed to the racetrack, to the horsemen who race horses at the racetrack and to the government are the same as their distributive shares from parimutuel wagering, all will enjoy an increase in revenue. To the extent that the respective shares of these participants differ from their share of parimutuel wagering, all participants may or may not enjoy an increase in revenue, depending upon the magnitude of the revenue increase. An additional finding of importance is that patrons who attend and wager on horse racing also wager on the VLT games while patrons who attend for the VLT gaming are less likely to wager on horse racing.

Suggested Citation

  • Richard Thalheimer, 1998. "Parimutuel wagering and video gaming: a racetrack portfolio," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 531-544.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:531-544
    DOI: 10.1080/000368498325796
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325796
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368498325796?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel B. Suits, 1979. "The Elasticity of Demand for Gambling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(1), pages 155-162.
    2. Mukhtar Ali & Richard Thalheimer, 1997. "Transportation costs and product demand: wagering on parimutuel horse racing," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 529-542.
    3. Gruen, Arthur, 1976. "An Inquiry into the Economics of Race-Track Gambling," Journal of Political Economy, University of Chicago Press, vol. 84(1), pages 169-177, February.
    4. Thalheimer, Richard & Ali, Mukhtar M., 1995. "Intertrack wagering and the demand for parimutuel horse racing," Journal of Economics and Business, Elsevier, vol. 47(4), pages 369-383, October.
    5. Richard Thalheimer & Mukhtar M. Ali, 1995. "The Demand for Parimutuel Horse Race Wagering and Attendance," Management Science, INFORMS, vol. 41(1), pages 129-143, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard Thalheimer, 2008. "Government restrictions and the demand for casino and parimutuel wagering," Applied Economics, Taylor & Francis Journals, vol. 40(6), pages 773-791.
    2. Richard Thalheimer & Mukhtar M. Ali, 2008. "The Demand For Casino Gaming With Special Reference To A Smoking Ban," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 273-282, April.
    3. Richard Thalheimer, 2012. "The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1177-1191, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Thalheimer, 2012. "The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1177-1191, March.
    2. Richard Thalheimer, 2008. "Government restrictions and the demand for casino and parimutuel wagering," Applied Economics, Taylor & Francis Journals, vol. 40(6), pages 773-791.
    3. Alessandro Pandimiglio & Marco Spallone, 2011. "L'elasticitˆ della domanda nel mercato italiano dei giochi: inquadramento generale ed analisi dei casi del lotto e del superenalotto," Working Papers CASMEF 1108, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    4. Richard Thalheimer & Mukhtar Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 907-918.
    5. Thalheimer, Richard & Ali, Mukhtar M., 1995. "Intertrack wagering and the demand for parimutuel horse racing," Journal of Economics and Business, Elsevier, vol. 47(4), pages 369-383, October.
    6. Mukhtar Ali & Richard Thalheimer, 1997. "Transportation costs and product demand: wagering on parimutuel horse racing," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 529-542.
    7. Jim Landers, 2008. "What's the potential impact of casino tax increases on wagering handle: estimates of the price elasticity of demand for casino gaming," Economics Bulletin, AccessEcon, vol. 8(6), pages 1-15.
    8. Marshall Gramm & C. Nicholas McKinney & Douglas H. Owens & Matt E. Ryan, 2007. "What Do Bettors Want? Determinants of Pari‐Mutuel Betting Preference," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(3), pages 465-491, July.
    9. Vickner, Steven S. & Koch, Stephen I., 2001. "Hedonic Pricing, Information, And The Market For Thoroughbred Yearlings," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 19(2), pages 1-17.
    10. Carter, Harold O. & Shepard, Lawrence E. & Whitney, Marilyn, 1991. "An Economic Analysis of the California Thoroughbred Racing Industry," Research Reports 251935, University of California, Davis, Giannini Foundation.
    11. Kathryn L. Combs & Jaebeom Kim & Jim Landers & John A. Spry, 2016. "The Responsiveness of Casino Revenue to the Casino Tax Rate," Public Budgeting & Finance, Wiley Blackwell, vol. 36(3), pages 22-44, September.
    12. Martin Smith, 2001. "Breeding incentive programmes and demand for California thoroughbred racing: is there a quality/quantity tradeoff?," Applied Economics, Taylor & Francis Journals, vol. 33(14), pages 1755-1762.
    13. Charles Moul & Joseph Keller, 2014. "Time to Unbridle U.S. Thoroughbred Racetracks? Lessons from Australian Bookies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(3), pages 211-239, May.
    14. Valeria De Bonis & Alessandro Gandolfo, 2013. "The Italian Model of Gambling Taxation: Fiscal Policy Guidelines for the «Sustainable Development» of an Important and Controversial Market," Economia dei Servizi, Società editrice il Mulino, issue 3, pages 239-258.
    15. Craig A. Depken & John M. Gandar, 2021. "Integrity Fees in Sports Betting Markets," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(1), pages 76-90, January.
    16. Badji, Samia & Black, Nicole & Johnston, David W., 2023. "Economic, Health and Behavioural Consequences of Greater Gambling Availability," Economic Modelling, Elsevier, vol. 123(C).
    17. Paresh Kumar Narayan & Russell Smyth, 2004. "The Race that Stops a Nation: The Demand for the Melbourne Cup," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 193-207, June.
    18. Ursula Hauser‐Rethaller & Ulrich König, 2002. "Parimutuel Lotteries: Gamblers' Behavior and the Demand for Tickets," German Economic Review, Verein für Socialpolitik, vol. 3(2), pages 223-245, May.
    19. Lambert, Thomas, 2021. "US Gambling Stagnation: Will New Gambling Forms Make a Difference?," MPRA Paper 108549, University Library of Munich, Germany.
    20. Chang, Juin-Jen & Fiedler, Ingo & Lai, Ching-Chong & Wang, Ping, 2021. "Cross-border casino competition, Externalities and Optimal Tax Policy: A Unified Theory with Quantitative Analysis," Regional Science and Urban Economics, Elsevier, vol. 88(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:30:y:1998:i:4:p:531-544. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.