IDEAS home Printed from https://ideas.repec.org/p/zbw/dicedp/381.html
   My bibliography  Save this paper

An empirical analysis of German casino locations

Author

Listed:
  • Haucap, Justus
  • Nedic, Radivoje
  • Şimşek, Talha

Abstract

In this paper we provide an empirical analysis of German casino locations. Due to the "mercantilistic background" of casinos, we assume that casinos are more likely to be found at borders and tourist areas. Although the location decision has been made in the past, we use cross-sectional data at county level to analyze whether the current locations of casinos are consistent with current policy objectives. We discuss whether fiscal incentives and/or regulatory objectives to prevent harmful gambling are relevant for the locations of German casinos. For our empirical analysis we use location and tourism indicators which are both significant factors for the location of German casinos. We find that the likelihood of a casino location increases if a county is located on a state border. We conjecture this is due to the following reasons: On the one hand there is increased out-of state demand on borders and on the other hand negative externalities of a casino can be shared with neighbor states. This is inconsistent, however, with the objectives of the State Treaty, which is to provide legal gambling opportunities for the population within the state. For better implementation of the objectives, a more balanced distribution of casinos throughout the urbanized regions in Germany is recommended.

Suggested Citation

  • Haucap, Justus & Nedic, Radivoje & Şimşek, Talha, 2022. "An empirical analysis of German casino locations," DICE Discussion Papers 381, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    • Handle: RePEc:zbw:dicedp:381
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/250903/1/1795103868.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mirella Yani-de-Soriano & Uzma Javed & Shumaila Yousafzai, 2012. "Can an Industry Be Socially Responsible If Its Products Harm Consumers? The Case of Online Gambling," Journal of Business Ethics, Springer, vol. 110(4), pages 481-497, November.
    2. van der Horst, Dan, 2007. "NIMBY or not? Exploring the relevance of location and the politics of voiced opinions in renewable energy siting controversies," Energy Policy, Elsevier, vol. 35(5), pages 2705-2714, May.
    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. Justus Haucap & Radivoje Nedic & Talha Şimşek, 2023. "Regulatory objectives vs fiscal interests: Are German casino locations motivated by beggar-thy-neighbor policy? An empirical analysis," European Journal of Law and Economics, Springer, vol. 55(2), pages 291-311, April.
    2. Ioannidis, Romanos & Koutsoyiannis, Demetris, 2020. "A review of land use, visibility and public perception of renewable energy in the context of landscape impact," Applied Energy, Elsevier, vol. 276(C).
    3. Lai, N.Y.G. & Yap, E.H. & Lee, C.W., 2011. "Viability of CCS: A broad-based assessment for Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3608-3616.
    4. Baxter, Jamie & Morzaria, Rakhee & Hirsch, Rachel, 2013. "A case-control study of support/opposition to wind turbines: Perceptions of health risk, economic benefits, and community conflict," Energy Policy, Elsevier, vol. 61(C), pages 931-943.
    5. Copena, Damián & Simón, Xavier, 2018. "Wind farms and payments to landowners: Opportunities for rural development for the case of Galicia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 38-47.
    6. Haggett, Claire, 2011. "Understanding public responses to offshore wind power," Energy Policy, Elsevier, vol. 39(2), pages 503-510, February.
    7. Lars Mewes & Leonie Tuitjer & Peter Dirksmeier, 2024. "Exploring the variances of climate change opinions in Germany at a fine-grained local scale," Nature Communications, Nature, vol. 15(1), pages 1-14, December.
    8. Krekel, Christian & Zerrahn, Alexander, 2017. "Does the presence of wind turbines have negative externalities for people in their surroundings? Evidence from well-being data," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 221-238.
    9. Zerrahn, Alexander & Krekel, Christian, 2015. "Sowing the Wind and Reaping the Whirlwind? The Effect of Wind Turbines on Residential Well-Being," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112956, Verein für Socialpolitik / German Economic Association.
    10. Pepermans, Yves & Loots, Ilse, 2013. "Wind farm struggles in Flanders fields: A sociological perspective," Energy Policy, Elsevier, vol. 59(C), pages 321-328.
    11. Rogers, J.C. & Simmons, E.A. & Convery, I. & Weatherall, A., 2008. "Public perceptions of opportunities for community-based renewable energy projects," Energy Policy, Elsevier, vol. 36(11), pages 4217-4226, November.
    12. Dessi, F. & Ariccio, S. & Albers, T. & Alves, S. & Ludovico, N. & Bonaiuto, M., 2022. "Sustainable technology acceptability: Mapping technological, contextual, and social-psychological determinants of EU stakeholders’ biofuel acceptance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    13. Linnell, Peter, 2010. "Are Smaller Turbines the Way Forward for Wind Energy in Herefordshire?," MPRA Paper 58879, University Library of Munich, Germany.
    14. Silverman, Rochelle E. & Flores, Robert J. & Brouwer, Jack, 2020. "Energy and economic assessment of distributed renewable gas and electricity generation in a small disadvantaged urban community," Applied Energy, Elsevier, vol. 280(C).
    15. Steffen, Bjarne, 2012. "Prospects for pumped-hydro storage in Germany," Energy Policy, Elsevier, vol. 45(C), pages 420-429.
    16. Heagle, A.L.B. & Naterer, G.F. & Pope, K., 2011. "Small wind turbine energy policies for residential and small business usage in Ontario, Canada," Energy Policy, Elsevier, vol. 39(4), pages 1988-1999, April.
    17. Galvin, Ray, 2018. "‘Them and us’: Regional-national power-plays in the German energy transformation: A case study in Lower Franconia," Energy Policy, Elsevier, vol. 113(C), pages 269-277.
    18. Grahame Dowling, 2014. "The Curious Case of Corporate Tax Avoidance: Is it Socially Irresponsible?," Journal of Business Ethics, Springer, vol. 124(1), pages 173-184, September.
    19. Gravelle, Timothy B. & Lachapelle, Erick, 2015. "Politics, proximity and the pipeline: Mapping public attitudes toward Keystone XL," Energy Policy, Elsevier, vol. 83(C), pages 99-108.
    20. Chuanwang Sun & Nan Lyu & Xiaoling Ouyang, 2014. "Chinese Public Willingness to Pay to Avoid Having Nuclear Power Plants in the Neighborhood," Sustainability, MDPI, vol. 6(10), pages 1-27, October.

    More about this item

    Keywords

    casinos locations; negative externalities; gambling regulation; stateborder effect; logit model; urbanization;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:dicedp:381. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/diduede.html .

    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.