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Sports betting cannibalization: Evidence from Pennsylvania

Author

Listed:
  • Nedved, Joseph D.
  • Ferreira Neto, Amir B.

Abstract

The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 resulted in the rapid introduction of sports betting into many U.S. markets. This study investigates the introduction of sports betting in Pennsylvania. We explore the staggered implementation of sports betting across casinos in Pennsylvania to analyze the impact of sports betting on slot gaming and table gaming. Our results show evidence that there is no short-term effect of sports betting on the revenues generated from slot gaming and tabling gaming demand, however, our results show some evidence of complementarity on the longer-term between sports betting and other gaming options.

Suggested Citation

  • Nedved, Joseph D. & Ferreira Neto, Amir B., 2024. "Sports betting cannibalization: Evidence from Pennsylvania," Economics Letters, Elsevier, vol. 245(C).
    • Handle: RePEc:eee:ecolet:v:245:y:2024:i:c:s0165176524005159
    DOI: 10.1016/j.econlet.2024.112031
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    More about this item

    Keywords

    Sports betting; Cannibalization; Gambling;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy

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