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Supplying Slot Machines to the Poor

Author

Listed:
  • Melisa Bubonya

    (Melbourne Institute of Applied Economic and Social Research, University of Melbourne)

  • David P. Byrne

    (Faculty of Business and Economics, University of Melbourne)

Abstract

As gambling becomes increasingly accessible both in the U.S. and worldwide, governments face an important policy question: how should they exploit the industry’s growth to raise tax revenues while protecting individuals from the detrimental effects of gambling? Using data on slot machines from the largest per-capita gambling market in the world, Australia, we estimate a structural oligopoly model to: (1) quantify firms’ incentives to make gambling accessible among socio-economically disadvantaged groups; and (2) evaluate the effect of government policy (gambling taxes, supply caps and venue smoking bans) on the distribution of slot machine supply, tax revenue and problem gambling prevalence. Classification-H71, L13, L83, L88, I31

Suggested Citation

  • Melisa Bubonya & David P. Byrne, 2015. "Supplying Slot Machines to the Poor," Melbourne Institute Working Paper Series wp2015n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2015n15
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2015n15.pdf
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