What's the potential impact of casino tax increases on wagering handle: estimates of the price elasticity of demand for casino gaming
This study estimates the price elasticity of demand for casino gaming. A demand model is estimated with data from a panel of 50 casinos operating in Illinois, Indiana, Iowa, and Missouri between 1991 and 2005. The model isolates the impact of changes in the casino win percentage or price on the wagering handle, controlling for the impact of other operating, economic, and regulatory determinants of the wagering handle. The model estimates suggest that the wagering handle in the short run is inelastic to price changes, and that in the long run the wagering handle is unit elastic if not somewhat inelastic.
Volume (Year): 8 (2008)
Issue (Month): 6 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hausman, Jerry A, 1978.
"Specification Tests in Econometrics,"
Econometric Society, vol. 46(6), pages 1251-71, November.
- Cook, Philip J & Clotfelter, Charles T, 1993.
"The Peculiar Scale Economies of Lotto,"
American Economic Review,
American Economic Association, vol. 83(3), pages 634-43, June.
- Mark W. Nichols, 1998. "The Impact of Deregulation on Casino Win in Atlantic City," Review of Industrial Organization, Springer, vol. 13(6), pages 713-726, December.
- Suits, Daniel B, 1979. "The Elasticity of Demand for Gambling," The Quarterly Journal of Economics, MIT Press, vol. 93(1), pages 155-62, February.
- Richard Thalheimer & Mukhtar Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 907-918.
- Gulley, O. David & Scott, Frank A. Jr., 1993. "The Demand for Wagering on State-Operated Lotto Games," National Tax Journal, National Tax Association, vol. 46(1), pages 13-22, March.
- 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.
- Gruen, Arthur, 1976. "An Inquiry into the Economics of Race-Track Gambling," Journal of Political Economy, University of Chicago Press, vol. 84(1), pages 169-77, February.
- Lany DeBoer, 1986. "Lottery taxes may be too high," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 5(3), pages 594-596.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-08h00007. 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: (John P. Conley)
If references are entirely missing, you can add them using this form.