IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v66y2017icp1-15.html
   My bibliography  Save this article

The impact of legalized casino gambling on crime

Author

Listed:
  • Nichols, Mark W.
  • Tosun, Mehmet Serkan

Abstract

The expansion of casino gambling has been controversial, with the economic and crime impacts heavily debated. Yet, few studies have considered the impact casinos have beyond the border of their host community or state. Using county-level data between 1994 and 2012, this paper examines the impact that casino legalization had on crime rates using a Spatial Durbin Model (SDM) to account for spatial dependence. A difference-in-differences model suggests that in the long term commercial casinos are associated with no significant change in crime in their host county, but crimes in surrounding adjacent counties do significantly increase. Indian casinos in contrast are associated with long-term reductions in crime in their surrounding counties. However, a distributed lag model, used to detect year-to-year variation in crime, reveals that both commercial and Indian casinos are associated with increases in crime in the years immediately following their opening. For commercial casinos these increases were statistically significant in the host county for six years, whereas for Indian casinos a statistically significant increase occurred in the first two years after opening. Impacts on surrounding adjacent counties were also significant but generally for fewer years. These initial increases in crime were offset by significant decreases in crime many years later explaining the long-term pattern captured in the difference-in-differences model.

Suggested Citation

  • Nichols, Mark W. & Tosun, Mehmet Serkan, 2017. "The impact of legalized casino gambling on crime," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 1-15.
  • Handle: RePEc:eee:regeco:v:66:y:2017:i:c:p:1-15
    DOI: 10.1016/j.regsciurbeco.2017.05.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046217300169
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Donald S. Elliott & John C. Navin, 2002. "Has Riverboat Gambling Reduced State Lottery Revenue?," Public Finance Review, , vol. 30(3), pages 235-247, May.
    2. Edward L. Glaeser & Bruce Sacerdote & José A. Scheinkman, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 507-548.
    3. Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September.
    4. Lee, Lung-fei & Yu, Jihai, 2010. "Estimation of spatial autoregressive panel data models with fixed effects," Journal of Econometrics, Elsevier, vol. 154(2), pages 165-185, February.
    5. Walker, Douglas M. & Jackson, John D., 1998. "New Goods and Economic Growth: Evidence from Legalized Gambling," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 47-70, Fall.
    6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    7. Kangoh Lee & Santiago M. Pinto, 2009. "Crime In A Multi-Jurisdictional Model With Private And Public Prevention," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 977-996.
    8. Santiago M. Pinto, 2007. "Tax Competition In The Presence Of Interjurisdictional Externalities: The Case Of Crime Prevention," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 897-913.
    9. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    10. Randall K. Q. Akee & Katherine A. Spilde & Jonathan B. Taylor, 2015. "The Indian Gaming Regulatory Act and Its Effects on American Indian Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 185-208, Summer.
    11. 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.
    12. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
    13. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    14. Mark W. Nichols & Mehmet Serkan Tosun & Jingjing Yang, 2015. "The Fiscal Impact of Legalized Casino Gambling," Public Finance Review, , vol. 43(6), pages 739-761, November.
    15. William S. Reece, 2010. "Casinos, Hotels, And Crime," Contemporary Economic Policy, Western Economic Association International, vol. 28(2), pages 145-161, April.
    16. Tosun, Mehmet Serkan & Skidmore, Mark, 2004. "Interstate Competition and State Lottery Revenues," National Tax Journal, National Tax Association, vol. 57(2), pages 163-178, June.
    17. William N. Evans & Julie H. Topoleski, 2002. "The Social and Economic Impact of Native American Casinos," NBER Working Papers 9198, National Bureau of Economic Research, Inc.
    18. Michael Wenz, 2008. "Matching estimation, casino gambling and the quality of life," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(1), pages 235-249, March.
    19. Douglas M. Walker, 2010. "Casinos and Crime in the USA," Chapters,in: Handbook on the Economics of Crime, chapter 19 Edward Elgar Publishing.
    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. Juin-Jen Chang & Ching-Chong Lai & Ping Wang, 2017. "A Tale of Two Cities: Cross-Border Casino Competition Between Detroit and Windsor," NBER Working Papers 23969, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Casino gambling; Crime; spatial spillovers;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    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:eee:regeco:v:66:y:2017:i:c:p:1-15. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/regec .

    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.