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Casino Gambling as an Economic Development Strategy

Author

Listed:
  • Terance J. Rephann

    (Office of Institutional Research and Planning, Allegany College, 12401 Willowbrook Road, SE, Cumberland, MD 21502, USA)

  • Margaret Dalton
  • Anthony Stair
  • Andrew Isserman

    (Regional Research Institute, PO Box 6825, West Virginia University, Morgantown, West Virginia 26506-6825, USA)

Abstract

Casino gambling has experienced dramatic growth in the USA during the past seven years. Because this growth has occurred recently, there have been few systematic studies of its effects. This paper uses quasi-experimental control group methods to study 68 counties where casinos were opened during the period 1989–93 and three multicasino counties. Results show that casino gambling is adopted by economically struggling counties and that it can be a successful development strategy. The effects trickle down to other sectors of the economy, including recipients of income maintenance payments. On the downside, local governments and local workers do not appear to reap the lion's share of benefits, as much of the income generated by casinos is dissipated through leakages outside the host county. Finally, some casino types and locations are marginally better than others, but currently these factors are not prominent determinants of casino effects.

Suggested Citation

  • Terance J. Rephann & Margaret Dalton & Anthony Stair & Andrew Isserman, 1997. "Casino Gambling as an Economic Development Strategy," Tourism Economics, , vol. 3(2), pages 161-183, June.
    • Handle: RePEc:sae:toueco:v:3:y:1997:i:2:p:161-183
    DOI: 10.1177/135481669700300204
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    Citations

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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. Karl R. Geisler & Mark W. Nichols, 2016. "Riverboat casino gambling impacts on employment and income in host and surrounding counties," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 101-123, January.
    3. Humphreys, Brad R. & Marchand, Joseph, 2013. "New casinos and local labor markets: Evidence from Canada," Labour Economics, Elsevier, vol. 24(C), pages 151-160.
    4. Mark Nichols & David Giacopassi & B. Grant Stitt, 2002. "Casino Gambling as a Catalyst of Economic Development: Perceptions of Residents in New Casino Jurisdictions," Tourism Economics, , vol. 8(1), pages 59-75, March.
    5. Bangsund, Dean A. & Leistritz, F. Larry, 1997. "Casinos In The Upper Midwest: A Discussion Of The Impacts," Agricultural Economics Reports 23459, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Metaxas, Theodore & Folinas, Sotiris, 2016. "Gambling Tourism and Economic Development: Some lessons from Macao," MPRA Paper 72397, University Library of Munich, Germany.
    7. Terance J Rephann, 2000. "The Economic Impacts of LULUs," Environment and Planning C, , vol. 18(4), pages 393-407, August.
    8. Timothy Jeonglyeol Lee, 2011. "Research Note: The Economic Impact of Opening a Gaming Venue in Australia," Tourism Economics, , vol. 17(2), pages 457-464, April.
    9. Chimezie Ozurumba & Younhee Kim, 2017. "New development: Evaluating state revenue portfolio stability—a case of commercial casino taxes," Public Money & Management, Taylor & Francis Journals, vol. 37(7), pages 521-526, November.
    10. Wu, Shou-Tsung & Chen, Yeong-Shyang, 2015. "The social, economic, and environmental impacts of casino gambling on the residents of Macau and Singapore," Tourism Management, Elsevier, vol. 48(C), pages 285-298.
    11. Amy K. Glasmeier & Tracey Farrigan, 2007. "The Economic Impacts of the Prison Development Boom on Persistently Poor Rural Places," International Regional Science Review, , vol. 30(3), pages 274-299, July.
    12. Reed, W. Robert & Rogers, Cynthia L., 2003. "A study of quasi-experimental control group methods for estimating policy impacts," Regional Science and Urban Economics, Elsevier, vol. 33(1), pages 3-25, January.
    13. Boto-García, David & Pérez, Leví, 2023. "Tourism seasonality and gambling: The role of a new casino's opening," Annals of Tourism Research, Elsevier, vol. 99(C).
    14. Edward Feser, 2013. "Isserman’s Impact," International Regional Science Review, , vol. 36(1), pages 44-68, January.

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