The Social and Economic Impact of Native American Casinos
AbstractIn the late 1980s, a series of legal rulings favorable to tribes and the subsequent passage of the Indian Gaming Regulatory Act of 1988 legalized gaming operations on reservations in many states. Today, there are over 310 gaming operations run by more than 200 of the nations' 556 federally-recognized tribes. Of these operations, about 220 are Las Vegas' style casinos with slot machines and/or table games. We use a simple difference-in-difference framework where we compare economic outcomes before and after tribes open casinos to outcomes over the same period for tribes that do not adopt or are prohibited from adopting gaming. Four years after tribes open casinos, employment has increased by 26 percent, and tribal population has increased by about 12 percent, resulting in an increase in employment to population ratios of five percentage points or about 12 percent. The fraction of adults who work but are poor has declined by 14 percent. Tribal gaming operations seem to have both positive and negative spillovers in the surrounding communities. In counties where an Indian-owned casino opens, we find that jobs per adult increase by about five percent of the median value. Given the size of tribes relative to their counties, most of this growth in employment is due to growth in non-Native American employment. The increase in economic activity appears to have some health benefits in that four or more years after a casino opens, mortality has fallen by 2 percent in a county with a casino and an amount half that in counties near a casino. Casinos do, however, come at some cost. Four years after a casino opens, bankruptcy rates, violent crime, and auto thefts and larceny are up 10 percent in counties with a casino.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9198.
Date of creation: Sep 2002
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-09-21 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Aragon, Fernando & Rud, Juan, 2009. "The Blessing of Natural Resources: Evidence from a Peruvian Gold Mine," Working Papers 2009-014, Banco Central de Reserva del Perú.
- Thomas A. Garrett & Mark W. Nichols, 2005.
"Do casinos export bankruptcy?,"
2005-019, Federal Reserve Bank of St. Louis.
- Michael Wenz, 2008. "Matching estimation, casino gambling and the quality of life," The Annals of Regional Science, Springer, vol. 42(1), pages 235-249, March.
- Voxi Heinrich S Amavilah, 2005. "Human Capital and Income across U.S. Native American Reservations and Trust Lands," GE, Growth, Math methods 0505001, EconWPA.
- Michael Greenstone & Enrico Moretti, 2003.
"Bidding for Industrial Plants: Does Winning a 'Million Dollar Plant' Increase Welfare?,"
NBER Working Papers
9844, National Bureau of Economic Research, Inc.
- Moretti, Enrico, 2004. "Bidding for Industrial Plants: Does Winning a 'Million Dollar Plant' Increase Welfare?," Santa Cruz Department of Economics, Working Paper Series qt5cz0h23t, Department of Economics, UC Santa Cruz.
- 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.
- Melissa S. Kearney, 2005. "The Economic Winners and Losers of Legalized Gambling," NBER Working Papers 11234, National Bureau of Economic Research, Inc.
- Hyclak, Thomas, 2011. "Casinos and campus crime," Economics Letters, Elsevier, vol. 112(1), pages 31-33, July.
- Earl L. Grinols & David B. Mustard, 2006.
"Casinos, Crime, and Community Costs,"
The Review of Economics and Statistics,
MIT Press, vol. 88(1), pages 28-45, February.
- William Evans & Wooyoung Kim, 2006. "The Impact of Local Labor Market Conditions on the Demand for Education: Evidence from Indian Casinos," Working Papers 06-14, Center for Economic Studies, U.S. Census Bureau.
- Tara Watson, 2005. "Public Health Investments and the Infant Mortality Gap: Evidence from Federal Sanitation Interventions on U.S. Indian Reservations," Department of Economics Working Papers 2005-02, Department of Economics, Williams College.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.