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Do casinos export bankruptcy?

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  • Thomas A. Garrett
  • Mark W. Nichols

Abstract

This paper measures the extent to which destination resort casinos export bankruptcy back to visitors' home states. Previous literature has alluded to this possibility, but to date studies have only examined the influence of local casinos on local bankruptcy. Using various survey data, we calculate the number of visits from each state to casino resort destinations in Nevada, New Jersey, and Mississippi. We find strong evidence that states having more residents who visit out-of-state casino resorts have higher bankruptcy filings. This effect is dominant in the south, suggesting that casinos located in wealthier regions are less likely to export bankruptcy.

Suggested Citation

  • Thomas A. Garrett & Mark W. Nichols, 2005. "Do casinos export bankruptcy?," Working Papers 2005-019, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedlwp:2005-019
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    Cited by:

    1. Brad R. Humphreys & John A. Nyman & Jane E. Ruseski, 2016. "The Effect of Recreational Gambling on Regional Health Outcomes: Evidence from Canadian Provinces," Working Papers 16-28, Department of Economics, West Virginia University.
    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. Brad R. Humphreys & Jane E. Ruseski, "undated". "Legalized Sports Betting and Mental Health," Working Papers 24-04, Department of Economics, West Virginia University.
    4. Garrett, Thomas A. & Wall, Howard J., 2014. "Personal-Bankruptcy Cycles," Macroeconomic Dynamics, Cambridge University Press, vol. 18(7), pages 1488-1507, October.
    5. Mien, Toh Siaw & Said, Rusmawati, 2018. "A Cross-sectional Household Analysis of Household Consumption Patterns: An Indirect Approach to Identify the Possible Factors of Personal Bankruptcy," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 231-246.
    6. Barry Scholnick & Hyungsuk Byun, 2016. "Do Slot Machines Cause Bankruptcy? A Regulatory Natural Experiment with Exogenous Changes to Slot Locations," ERSA conference papers ersa16p607, European Regional Science Association.
    7. Thomas E. Lambert & Arun Kumar Srinivasan & Uric B. Dufrene & Hokey Min, 2010. "Urban Location And The Success Of Casinos In Five States," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 3(3), pages 1-16.
    8. Ya-Ling Huang & In-Fun Lee & Yen-Hsien Lee, 2012. "Modeling Operational Efficiency Using Data Envelopment Analysis: Evidence From Atlantic City Hotels," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(3), pages 63-72.
    9. Brad R. Humphreys & John A. Nyman & Jane E. Ruseski, 2021. "The Effect of Recreational Gambling on Health and Well-Being," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(1), pages 29-75, January.
    10. Lambert, Thomas & Srinivasan, Arun & Dufrene, Uric & Min, Hokey, 2010. "Urban Location and the Success of Casinos in Five States: A Data Envelopment Analysis Approach," MPRA Paper 69740, University Library of Munich, Germany.
    11. Hyungsuk Byun & Barry Scholnick, 2017. "Spatial Commitment Devices and Addictive Goods: Evidence from the Removal of Slot Machines from Bars," Working Papers 17-34, Federal Reserve Bank of Philadelphia.
    12. James Richard Hill & Peter A. Groothuis, 2012. "The Effects of Per Capita Tribal Payments on the Fertility, Education, and Labor Force Participation of Tribal Members," Business and Economic Research, Macrothink Institute, vol. 2(2), pages 106-118, December.
    13. Cotti, Chad D. & Walker, Douglas M., 2010. "The impact of casinos on fatal alcohol-related traffic accidents in the United States," Journal of Health Economics, Elsevier, vol. 29(6), pages 788-796, December.
    14. Adkisson, Richard V. & Saucedo, Eduardo, 2012. "Emulation and state-by-state variations in bankruptcy rates," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 400-407.

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    Keywords

    Gambling industry; Bankruptcy;

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