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The Impact of Deregulation on Casino Win in Atlantic City

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  • Mark W. Nichols

Abstract

This paper examines the impact of deregulation on the demand for casino gaming in Atlantic City. Specifically, the paper analyzes the impact of expanded operating hours and floor space devoted to slot machines. Using monthly win data between June 1978 and July 1996, the analysis reveals that expanded floor space had a significant, positive impact on win, resulting in an average monthly increase of over \$2 million. This shows the importance of developing a regulatory structure rigid enough to ensure the honesty and integrity of the gaming industry, but flexible enough to allow management to respond to changing market conditions.

Suggested Citation

  • Mark W. Nichols, 1998. "The Impact of Deregulation on Casino Win in Atlantic City," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(6), pages 713-726, December.
    • Handle: RePEc:kap:revind:v:13:y:1998:i:6:p:713-726
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    Cited by:

    1. Richard Thalheimer & Mukhtar M. Ali, 2008. "The Demand For Casino Gaming With Special Reference To A Smoking Ban," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 273-282, April.
    2. Edward Castronova, 2002. "On Virtual Economies," CESifo Working Paper Series 752, CESifo.
    3. Harriet Newburger & Anita Sands & John Wackes, 2009. "Atlantic City : past as prologue," Monograph, Federal Reserve Bank of Philadelphia, number 2009acpa, May.
    4. Richard Thalheimer & Mukhtar Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 907-918.
    5. Jim Landers, 2008. "What's the potential impact of casino tax increases on wagering handle: estimates of the price elasticity of demand for casino gaming," Economics Bulletin, AccessEcon, vol. 8(6), pages 1-15.
    6. Richard Thalheimer, 2012. "The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1177-1191, March.

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