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An Economic Comparison of Gambling behavior in Atlantic City and Las Vegas

Author

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  • Mary O. Borg

    (University of North Florida)

  • Paul M. Mason

    (University of North Florida)

  • Stephen L. Shapiro

    (University of North Florida)

Abstract

Using data from a recent survey that we commissioned, this article investigates (for the first time in the public domain) the demography and tax incidence implications of casino gambling in Atlantic City, and does so in conjunction with a comparison to Las Vegas. The results indicate that the two gambling environments are very different in terms of the characteristics of those who gamble, and as a result, the tax incidence implications. Speccfically, Atlantic City appears to primarily attract two distinct groups of gamblers, those who are older and wealthier and who gamble extensively, and those who are older and poorer, who gamble very little. As a result, the tax inherent in casino gaming in Atlantic City is only slightly regressive. This differs markedly from the results for Las Vegas, which imply that Las Vegas gamblers are primarily vacationers who gamble voraciously with less regard for income and thus pay a very regressive tax.

Suggested Citation

  • Mary O. Borg & Paul M. Mason & Stephen L. Shapiro, 1990. "An Economic Comparison of Gambling behavior in Atlantic City and Las Vegas," Public Finance Review, , vol. 18(3), pages 291-312, July.
    • Handle: RePEc:sae:pubfin:v:18:y:1990:i:3:p:291-312
    DOI: 10.1177/109114219001800303
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    References listed on IDEAS

    as
    1. Borg, Mary O. & Mason, Paul M., 1988. "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, National Tax Association;National Tax Journal, vol. 41(1), pages 75-85, March.
    2. Borg, Mary O. & Mason, Paul M., 1988. "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, National Tax Association, vol. 41(1), pages 75-85, March.
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    Cited by:

    1. Gazel, Ricardo & Rickman, Dan S. & Thompson, William N., 2000. "The Sources of Revenues for Wisconsin Native American Casinos: Implications for Casino Gaming as a Regional EconomicDevelopment Tool," The Review of Regional Studies, Southern Regional Science Association, vol. 30(3), pages 259-274, Winter.
    2. William C. Rivenbark, 1998. "The Tax Incidence of Casino Gaming in Mississippi," Public Finance Review, , vol. 26(6), pages 583-598, November.
    3. Luca Gandullia & Lucia Leporatti, 2019. "Distributional effects of gambling taxes: empirical evidence from Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(4), pages 565-590, December.
    4. Kwaku Adutwum Ayim Boakye & Samuel Kobina Annim & Isaac Dasmani, 2013. "An Econometric Analysis of Internal Travel Patterns in Ghana and the Implications for Domestic Tourism," Tourism Economics, , vol. 19(5), pages 1155-1171, October.

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