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Casinos, Crime, and Community Costs

Author

Listed:
  • Earl L. Grinols

    (Baylor University, and Terry College of Business)

  • David B. Mustard

    (University of Georgia and the Institute for the Study of Labor)

Abstract

We examine the relationship between casinos and crime using county-level data for the United States between 1977 and 1996. Casinos were nonexistent outside Nevada before 1978, and expanded to many other states during our sample period. Most factors that reduce crime occur before or shortly after a casino opens, whereas those that increase crime, including problem and pathological gambling, occur over time. The results suggest that the effect on crime is low shortly after a casino opens, and grows over time. Roughly 8% of crime in casino counties in 1996 was attributable to casinos, costing the average adult $75 per year. © 2006 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • 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.
    • Handle: RePEc:tpr:restat:v:88:y:2006:i:1:p:28-45
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    References listed on IDEAS

    as
    1. Grinols,Earl L., 2004. "Gambling in America," Cambridge Books, Cambridge University Press, number 9780521830133.
    2. Ian Ayres & Steven D. Levitt, 1998. "Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 43-77.
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    5. Ricardo C. Gazel & Dan S. Rickman & William N. Thompson, 2001. "Casino gambling and crime: a panel study of Wisconsin counties," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 65-75.
    6. Levitt, Steven D, 1998. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 353-372, July.
    7. 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.
    8. H. Naci Mocan & R. Kaj Gittings, 2001. "Pardons, Executions and Homicide," NBER Working Papers 8639, National Bureau of Economic Research, Inc.
    9. Barbara A. Lee & James Chelius, 1989. "Government Regulation of Labor-Management Corruption: The Casino Industry Experience in New Jersey," ILR Review, Cornell University, ILR School, vol. 42(4), pages 536-548, July.
    10. David B. Mustard, 2003. "Reexamining Criminal Behavior: The Importance of Omitted Variable Bias," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 205-211, February.
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