IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v45y2014i1p41-59.html
   My bibliography  Save this article

An Examination of Cannibalization Effects within the Riverboat Gaming Industry: The Case of Illinois-Area Casinos

Author

Listed:
  • Ryan M. Gallagher

Abstract

As states become increasingly reliant on taxable casino revenues to augment their budgets, questions concerning optimal casino location have entered into policy dialogues across the country. Notably, policy makers have become concerned with the presence and size of so-called “cannibalization effects” within the casino industry whereby casinos operating within overlapping markets capture one another's business. However, the size, significance, and underlying mechanics of these effects have received very little attention in the academic literature. Using a unique data panel for the Illinois region that spans over a decade, this paper develops a working framework for identifying the presence of intra-industry cannibalization effects for the riverboat gaming industry. Evidence suggests cannibalization effects do indeed exist and are largely a function of new casino development, not the expansion of pre-existing casinos. These effects also attenuate rather quickly with distance.

Suggested Citation

  • Ryan M. Gallagher, 2014. "An Examination of Cannibalization Effects within the Riverboat Gaming Industry: The Case of Illinois-Area Casinos," Growth and Change, Wiley Blackwell, vol. 45(1), pages 41-59, March.
  • Handle: RePEc:bla:growch:v:45:y:2014:i:1:p:41-59
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/grow.12029
    Download Restriction: Access to full text is restricted to subscribers.

    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. 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.
    2. Richard Thalheimer & Mukhtar Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 907-918.
    3. Kearney, Melissa Schettini, 2005. "State lotteries and consumer behavior," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2269-2299, December.
    4. Anthony V. Popp & Charles Stehwien, 2002. "Indian Casino Gambling and State Revenue: Some Further Evidence," Public Finance Review, , vol. 30(4), pages 320-330, July.
    5. Gary C. Anders & Donald Siegel & Munther Yacoub, 1998. "Does Indian Casino Gambling Reduce State Revenues? Evidence From Arizona," Contemporary Economic Policy, Western Economic Association International, vol. 16(3), pages 347-355, July.
    6. Douglas M. Walker & John D. Jackson, 2011. "The Effect Of Legalized Gambling On State Government Revenue," Contemporary Economic Policy, Western Economic Association International, vol. 29(1), pages 101-114, 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. María Teresa Álvarez-Martínez & Michael L. Lahr, 2016. "Gaming, States, and Tax Revenues—the Tortoise or the Hare: A CGE Comparative Assessment of Casino Resorts and Games-Only Casinos," Growth and Change, Wiley Blackwell, vol. 47(2), pages 236-258, June.
    2. repec:bla:growch:v:48:y:2017:i:3:p:409-434 is not listed on IDEAS

    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:bla:growch:v:45:y:2014:i:1:p:41-59. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.