IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v40y2008i6p773-791.html
   My bibliography  Save this article

Government restrictions and the demand for casino and parimutuel wagering

Author

Listed:
  • Richard Thalheimer

Abstract

Growth in casino wagering in the United States from the mid-1980s forward has been extraordinary. Over the same period, however, parimutuel wagering has declined. Concern for this decline has prompted a number of states to allow parimutuel racetracks to offer casino-type gaming devices at their facilities. Such operations are commonly referred to as 'racinos'. If the gaming devices at a racino are under the auspices of a state lottery, they are referred to as video lottery terminals (VLTs). Separate parimutuel and VLT wagering demand models were estimated for a racino facility. A number of restrictions were imposed on the VLT's at the beginning of the study period including: number of VLT's, type of game and machine, maximum bet per play and VLT location. The effect of these restrictions on VLT and parimutuel handles was a major focus of this article. Also of importance was an examination of the relationship between the VLT and parimutuel products. Relaxation of government restrictions on the VLT's was found to have resulted in a large increase in VLT wagering. On the other hand, parimutuel wagering was found to decrease with the relaxation of restrictions on the VLT's. The presence and growth of the VLT product was found to decrease parimutuel handle. The presence and growth of the parimutuel product was found to increase VLT handle.

Suggested Citation

  • Richard Thalheimer, 2008. "Government restrictions and the demand for casino and parimutuel wagering," Applied Economics, Taylor & Francis Journals, vol. 40(6), pages 773-791.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:773-791
    DOI: 10.1080/00036840600749672
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749672
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840600749672?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. Mukhtar Ali & Richard Thalheimer, 2002. "Product choice for a firm selling related products: A parimutuel application," Applied Economics, Taylor & Francis Journals, vol. 34(10), pages 1251-1271.
    2. William R. Eadington, 1999. "The Economics of Casino Gambling," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 173-192, Summer.
    3. 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.
    4. Jon David Vasche, 1990. "The net revenue effect of California's lottery," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 9(4), pages 561-564.
    5. Richard Thalheimer, 1998. "Parimutuel wagering and video gaming: a racetrack portfolio," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 531-544.
    6. Thomas F. Cargill & William R. Eadington, 1978. "Nevada's Gaming Revenues: Time Characteristics and Forecasting," Management Science, INFORMS, vol. 24(12), pages 1221-1230, August.
    7. 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.
    8. 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.
    9. Richard Thalheimer & Mukhtar Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 907-918.
    10. Julie Hunsaker, 2001. "The impact of riverboat casinos on the demand for gambling at casino resorts: a theoretical and empirical investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 97-111.
    11. 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.
    12. 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)

    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 & Mukhtar Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 907-918.
    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, 1998. "Parimutuel wagering and video gaming: a racetrack portfolio," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 531-544.
    5. 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.
    6. 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.
    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. 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.
    9. 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.
    10. 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.
    11. 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).
    12. Juin-Jen Chang & Ching-Chong Lai & Ping Wang, 2017. "A Tale of Two Cities: Cross-Border Casino Competition Between Detroit and Windsor," NBER Working Papers 23969, National Bureau of Economic Research, Inc.
    13. John C. Navin & Timothy S. Sullivan, 2007. "Do Riverboat Casinos Act as Competitors? A Look at the St. Louis Market," Economic Development Quarterly, , vol. 21(1), pages 49-59, February.
    14. Juin-Jen Chang & Ching-Chong Lai & Ping Wang, 2010. "Casino regulations and economic welfare," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 1058-1085, August.
    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. Lambert, Thomas, 2021. "US Gambling Stagnation: Will New Gambling Forms Make a Difference?," MPRA Paper 108549, University Library of Munich, Germany.
    17. Richard Thalheimer & Mukhtar M. Ali, 2004. "The Relationship of Pari‐mutuel Wagering and Casino Gaming to Personal Bankruptcy," Contemporary Economic Policy, Western Economic Association International, vol. 22(3), pages 420-432, July.
    18. 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.
    19. 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 296-314, June.
    20. 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.

    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:40:y:2008:i:6:p:773-791. 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.